This article explains the payment methods available for subscriptions and invoices, including SEPA Direct Debit, Credit Card, and Bank Transfer. You will also learn how each payment method works, processing timelines, authorisation requirements, and important billing considerations.
Overview
Factorial offers different payment methods depending on the subscription type, billing frequency, and customer requirements:
- SEPA Direct Debit (SDD)
- Credit Card
- Bank Transfer
Each payment method has different processing times, approval workflows, and customer actions.
When and why it should be used
- Use SEPA Direct Debit (SDD) for recurring payments within the SEPA area
- Use Credit Card payments for faster activation and automated recurring billing
- Use Bank Transfer for large payments or annual subscriptions that require manual processing
- The selected payment method may depend on customer preference, subscription type, payment frequency, or internal approval requirements
How to select a payment method
If you pay via SEPA Direct Debit or credit card, you can update your payment method directly from the Customer Portal.
If you pay via bank transfer, you will need to contact your Account Manager so the change can be processed internally.
The same applies when switching from SEPA Direct Debit or credit card to bank transfer.
- In your sidebar, go to Billing to open the Customer portal
- Access the Payment methods section
- On Add payment method, choose the one you prefer
- Select if it is a primary payment method or a backup
- Click on Add
SEPA Direct Debit (SDD)
SEPA Direct Debit (SDD) allows businesses to automatically collect recurring payments, such as subscriptions or service fees, directly from your bank account within the SEPA area.
SEPA payments are initiated immediately after the invoice is created and cannot be reverted manually. Payments usually take between 2 and 3 business days to complete. SEPA transactions include an 8-week dispute period. During this time, you can dispute the charge through their bank and recover the funds.
International bank transfers may require additional processing time depending on the bank.
Credit card payments
Credit card payments allow automatic charges for recurring subscriptions or specific transactions using the your registered card information.
Unlike SEPA Direct Debit, no SEPA authorisation document is required because you authorise the payment directly when registering their card details.
Before creating the subscription in Chargebee, Finance sends you an email requesting a payment method update. The payment registration link is valid for 5 days. Once the credit card information is registered successfully, the account can be activated.
If you cannot access the payment registration link because it has expired, request a new Payment Method Update email.
Bank transfer
Bank transfer payments are managed manually and are generally used for large payments, especially annual subscriptions.
National bank transfers typically take 1–2 business days to complete, while international transfers may require additional processing time. Payment terms define how many days the customer has to complete the payment after the invoice is issued. Standard payment terms are 10 days, while 30-day terms are only approved exceptionally.
All bank transfer payments must be approved by Factorial.
If an incorrect currency is being used for bank transfer, contact your Account Manager to verify whether the payment can still be processed correctly.
Tips and best practices
- Make sure you select the payment method that best fits your subscription type and billing preferences
- Verify that your contact and billing information is correct before completing the payment setup
- Keep in mind that payment processing times may vary depending on the selected payment method and your bank
- If you use SEPA Direct Debit, avoid requesting refunds during the 8-week dispute period, as the payment can still be disputed through your bank
- Complete your credit card registration as soon as possible after receiving the payment link, since it expires after 5 days
- If you are unsure about your payment status or billing terms, contact the support team or your Account Manager for assistance.
FAQ
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Can I cancel a SEPA payment after the invoice is created?
No. Once the invoice is issued, the SEPA payment is automatically initiated and cannot be manually cancelled.
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Why can’t I receive a refund during the SEPA dispute period?
SEPA payments include an 8-week dispute period during which you can dispute the payment through your bank. To avoid duplicate reimbursements, refunds are not processed during this period.
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Do I need to sign a SEPA authorisation document to pay by credit card?
No. When you register your credit card details, you automatically authorise the payment method.
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Which currencies are supported for bank transfers?
Bank transfers are supported in EUR, USD, and GBP. Make sure you use the correct bank account details for the invoice currency provided.