Transaction Costs Transaction costs generally refer to the fees incurred when rights of disposal are transferred. This occurs in the context of purchase, sale or lease. One assumes that with the execution of each transaction appropriate costs result. A distinction is made between costs that are incurred in the run-up to a transaction (e.g., the […]

Third-Party Billing Third-party billing or sub-acquiring means the processing of payments via a third-party provider. Payments are transferred to a payment provider, who then settles them with the merchant. The payment provider also takes care of unfulfilled payments, the corresponding reminders or the involvement of collection agencies. Advantages for the merchant With third-party billing, merchants […]

STP Process As part of the introduction of the Single Euro Payments Area (SEPA) and the associated switch to standardized pan-European payment procedures such as the SEPA credit transfer and the SEPA direct debit, the term STP (Straight Through Processing) has become established. This refers to the interoperability of transactions, i.e., the automated processing of […]

Shop System The technical basis of any online store is the shop system. The selection of shop systems is almost unlimited and is divided into the large categories of open source, purchase and rental software. Some store systems are based on well-known CMS systems such as Drupal, Typo3 or Joomla. Here is a brief overview […]

What is a payment service provider (PSP)? Whether you are an online store operator, a provider of digital content or an organization with an online donation form – just about anyone who wants to accept payments on the Internet would be well advised to use a payment service provider. This largely automates the payment process, […]

SEPA Character Set The SEPA character set is used to create messages in online or e-banking. This can include composing transfer orders or direct debit collections and setting up standing orders. SEPA is based on the XML format, as most international IT systems support this standard at their interfaces. It was used by the European […]

Direct Debit A direct debit is a cashless payment transaction. The payee initiates the payment transaction (“pull payment”) by debiting the account of the respective debtor with a sum to be paid. The amount is determined by the payee. The equivalent of the direct debit is the so-called “push payment”, which is initiated by the […]

SEPA: XML format for uniform payment transactions In order to be able to process SEPA direct debits and credit transfers, companies must switch to a new data format according to the SEPA Migration Regulation: the XML format (Extensible Markup Language format). XML is a document-describing language that, unlike HTML, is not used to structure and […]

SEPA Intended Purpose Whereas in Germany the DTA format previously allowed 378 characters to be used for the intended purpose of a payment order, the SEPA procedure now only allows a maximum of 140 characters. However, the purpose of use can be extended by a few lines and characters. Payers can insert a maximum of […]

SEPA Mandate Creation The SEPA direct debit mandate authorizes a payee (creditor) to collect one or more direct debits from the account of a payer (debtor). However, a direct debit mandate is only valid if it has been created in accordance with the specifications of the European Payments Council (EPC). These define the form and […]

SEPA Countries (list of countries) The Single Euro Payments Area (SEPA) has created an area in which Europe’s payment transactions can be processed uniformly, securely and quickly. With the SEPA credit transfer and the SEPA direct debit, Europe’s economic players can carry out transactions that are all subject to the same conditions. This will make […]

SEPA Fees The changeover to SEPA payments is free of charge for consumers. In the course of the changeover, account numbers and bank codes will automatically be converted to BIC and IBAN. Stored standing orders will also be automatically adjusted. Only the basic account maintenance fees will continue to be due if the house bank […]