Sorry FlareCO but thats not the case.
Sepa direct debit come with a 0% charge, only a flat fee applies. The fee differs from bank to bank, but its usually 0.10€ - 0.20€
Also, timeframe for SDD claims are much shorter, 60days (SDD) instead of the usual 120days (Visa chargeback)
For SSD claims you also need to provide proof that the charge was fradulent, just saying “I don’t want to pay this” doesn’t cut it.
Every customer has to sign / receive a SDD mandate to make it valid.
Yes, there is some risk since you don’t know til you receive the money via SDD that the account has enough funds in it, but there is a way around it:
Curve would put a hold on an underlying card for that purchased amount and once the SDD clears (usually 1-2 banking days) they’d remove the AUTH on the card.
So yes, SDD would be an insane move from Curve since it creates a lot of new revenue (they won’t have to pay any merchant fees for cards anymore), it is safe and more customers would sign up.
If they want to reduce the fraud risk even more, just allow current members to use SDD who already spent x€ over the last x months with Curve.