Glossary
SEPA Direct Debit — plain English explanation
A way to automatically collect recurring payments from EU bank accounts without chasing invoices.
What it is
SEPA (Single Euro Payments Area) Direct Debit is a pan-European payment method that allows businesses to automatically pull recurring payments from a customer's EU bank account, with the customer's authorisation. Instead of sending an invoice and waiting for the client to pay, the business collects the payment automatically on the agreed date. The client signs a mandate once — either on paper or electronically — and subsequent payments are collected without any further action from either party. SEPA covers all 36 European countries and payments are processed in euros.
Why it matters for small businesses
For businesses offering retainers, subscriptions, or regular services — an accountant billing monthly, a cleaning company with weekly visits, a gym with membership fees — SEPA Direct Debit eliminates the most time-consuming and uncomfortable part of running a service business: chasing unpaid invoices. Instead of sending a reminder, waiting, sending another reminder, and having an awkward conversation, the payment simply arrives on the agreed date.
How Genju implements it
Genju supports SEPA Direct Debit via Stripe for recurring billing arrangements. When setting up a recurring invoice for a client, they are sent a link to authorise the SEPA mandate. Once authorised, subsequent invoices in the same cycle are collected automatically. All SEPA mandates and payment history are visible in the Invoicing module.
In practice
An IT company manages 8 clients on monthly retainers. Before SEPA: invoices sent monthly, average payment time 18 days, 2-3 clients needing reminders each month. After setting up SEPA Direct Debit via Genju: all 8 retainers collected automatically on the 1st of each month. Payment time: 3-5 banking days. Zero chasing.