Direct Debit
In manufacturing, margins are thin. Every cost matters. Although credit card payments are convenient, they typically carry transaction fees of 2–4%, which can quickly erode profitability.
If credit cards seem “too expensive” for your business, direct debits are not just an alternative – they’re often the smarter financial move for manufacturers. Direct debit solutions, such as ACH in the U.S. or SEPA in Europe, offer a low-cost, B2B-friendly alternative for accepting online payments.
By enabling direct debit (ACH, SEPA, or Pay by Bank where available), you gain lower fees, more control over cash flow, and payment options that align with B2B buying habits. Enabling direct debits can help you protect margins, reduce payment risk, and improve customer satisfaction.
Advantages of Direct Debit
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Lower transaction cost
Direct debit fees are much lower than credit card fees (often well under 1%). More of your margin stays in your pocket. -
Reduced customer friction
For many business buyers, paying via bank transfer/direct debit is trusted and convenient once set up. No card details, no expiry dates. -
Lower fraud & chargeback risk
While not zero, direct debits generally have fewer chargebacks, especially after mandate setup and verification. You also avoid risks tied to stolen or misused cards. -
Competitive differentiation
Offering direct debit shows you understand B2B realities and can provide low-cost, efficient payment options that strengthen customer relationships.
Trade-Offs & Risks of Direct Debit
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Settlement delays and reversals
ACH and SEPA can have lag times between initiation and final settlement. SEPA also allows refunds under certain conditions (8 weeks for authorized, up to 13 months for unauthorized). -
Return & NSF (non-sufficient funds) risk
Some payments may bounce, especially without upfront account validation. This adds administrative work and cash-flow uncertainty. -
Customer preferences
Some customers prefer credit cards (e.g., for rewards). Changing habits requires clear communication and a smooth payment experience. -
Cost of add-on services
Real-time account validation or open banking adds a per-transaction cost. Still, the total cost is almost always much lower than card fees.
Practical Steps to Try Direct Debit
Direct debit gives you a way to digitize payments without the high cost of cards, making it an ideal entry point for manufacturers moving online for the first time.
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Pilot with trusted customers
Begin with a small group of reliable buyers. Offer them direct debit as a payment option and track the impact on costs, payment reliability, and reconciliation effort. -
Make Direct Debit the default online method
For buyers already paying invoices via traditional bank transfers, direct debit feels natural. Position it as the primary option in your webstore checkout and payment workflows. -
Enable online invoice payments
Add Pay-Now links to your digital invoices that direct customers to the open invoices published in your Sana webstore. There, they can use your configured payment methods to pay individual invoices, or they can conveniently batch pay multiple invoices at once. -
Promote the benefits clearly
Proactively explain why customers should use direct debit: lower cost, security, and convenience. Provide clear instructions and FAQs so adoption is smooth, and hesitation is reduced.
Direct Debit Solutions by Region
Direct debit isn’t the same everywhere. Each region has its own payment rails, rules, and best practices. Choosing the right option depends on where your customers are located:
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[Direct Debit in the US]
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[Direct Debit in Europe]
