Understanding SEPA Direct Debit on coapp Stripe
SEPA Direct debit is a popular payment method in Europe, and is also available in coapp payments by Stripe. There are two important components to understand: chargebacks and limits.
Chargebacks
By law, customers in the eurozone can reclaim any payments made via SEPA Direct Debit without providing a reason, for up to 8 weeks after the payment has been made. This poses a potential pending risk for payments you have already received. Chargebacks for SEPA Direct Debit on Stripe are referred to as “disputes”. You can filter your payment history to review disputes, using the link below:
Payment limits due to pending chargeback risks
When you open a new coapp account and start accepting coapp payments by Stripe for the first time, by default, SEPA Direct Debit transactions have a limit of 10,000 EUR each. For new users, there is an additional weekly limit of 10,000 EUR, which can quickly increase as you process more SEPA Direct Debits. If you need higher limits, please contact Stripe for further assistance.
Conclusion
When utilizing SEPA Direct Debit on Stripe, it is important to understand chargebacks and limits.