Thanks to direct debit, there’s no longer any need to wait for payments, send reminders or call your customers. With the customer’s consent, you can set up a direct debit that periodically deducts an amount from their bank account or credit card. This is convenient for recurring payments, such as a subscription, rental costs or a membership. With PayByLink, you can collect these periodic costs on a monthly, quarterly or annual basis through the bank or credit card company.
If you make use of the option to collect amounts through the bank, you will first need a bank authorisation. Your customer will need to authorise you to periodically withdraw money from their account. Once this has been arranged, direct debits can be processed using PayByLink. If the customer owes you a sum of money for a purchased product or service, the amount can be sent directly by means of PayByLink to the bank for collection. Amounts can be collected through the dashboard, a batch or an API. In the event of a reversal or an error, you can immediately send an email with a payment link so that the outstanding amount will still be paid. Direct debit through PayByLink offers you more certainty of a quick payment.
You can also use PayByLink to collect automatically through a credit card. The first step is for the Payment Service Provider to know the relationship between the customer number and your customer’s credit card number. To establish this relationship, the first payment must always be made online by the cardholder through the Payment Service Provider.
The relationship between the customer number and the credit card number is then recorded in a token. Tokenisation is a technology that replaces sensitive data with a unique combination of letters and/or numbers. After this first step, PayByLink enables you to charge new transactions directly to the credit card without any action being required by your customers. To do this, PayByLink passes on amounts to the Payment Service Provider, but not a card number. The payment service provider uses tokens to easily and securely implement the payment orders.