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Often, products and services can be easily ordered online through an initial iDEAL payment, followed by a recurring direct debit. It’s the epitome of convenience. But what if your potential customer has a foreign bank account?
- Is your website or portal equipped to accept foreign IBANs, which sometimes have a different structure?
- Did you know that iDEAL payments can only be made to and from a Dutch bank account?
- And did you know that processing direct debits from foreign accounts sometimes requires additional information to be successful?
At first, you might think, “It’s just a small fraction of our potential customer base and not worth the effort.”. However, and perhaps not top of mind, European regulations prohibit ‘IBAN discrimination.’ As a business, you cannot refuse a foreign bank account. In fact, there are significant fines for doing so.
All the more reason to be vigilant and ensure your systems and processes are set up to comply with the law and serve every potential customer. After all, every customer counts.
A Few Tips
- Test your web applications
Make sure that an IBAN with a different structure than what we are used to in the Netherlands is properly supported. And that the correct validation is applied. - Offer alternative payment methods
For customers with a foreign IBAN, provide an alternative way to make an initial payment (whether through your service desk or otherwise). Ensure this method aligns seamlessly with your delivery process. - Collect the right information for SEPA mandates
Ensure you request the correct details when setting up a SEPA direct debit mandate so that recurring debits are successful.
If you manage the above properly, you’ll maximize your potential customer base and simultaneously comply with European regulations. Two less things to worry about.
Of course, our product, Abillity®, fully supports all of the above.
