SDD: Sepa Direct Debit to reduce Curve fees

Hello,
Curve should implement SDD to connect curve card to our IBAN.
In this way Curve will not pay money transfer fees between visa and mastercard card and can increase the cashback possibilities for customers.

Already use by and other app, today dead: GLASE.

Im ready to be in beta testing!

Moved to ideas category so people can vote on this

SDDs are not free.
The bank that executes the SDD also wants to make money.

The fee is normally between 0.4% and 3% and depends on the business type and the annual transaction volume.

If Curve would offer SDDs as a payment method, Curve must grant each customer a credit because the money does not arrive directly at curve. Bringing back an SDD is also too easy and poses a high risk compared to the chargeback of a card payment.

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I hope Curve will introduce this service. Many platform actually works with this system like PayPal, Satispay and Oval. I’m sure it could be apprecciate by Curve users. We are not talking about this must be the Curve main business but only one more chache for the costumer. For a service like this i think many people could also pay a small fee like 1-2€/month (in case of Curve blue users).

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.

Hey there,

  1. Fees various depending on bank/psp.
  2. SDD Chargebacks are final the merchant cant provide evidence, and no you dont need to provide evidence at Sparkasse/DKB. Its a single button click and the SDD is returned.
  3. Decreasing Fraud Risk by only allowing it to current members would be a good idea.
  4. Placing a hold/auth on an underlaying card would make you pay twice for a moment.

I think it was called SDD because it is the most common method, but what matters is to be able to connect the card also to the bank account (by direct debit) and not only to other cards. In the meantime, having the possibility to use the Maestro circuit could be a good alternative.

Noone will use a PSP for direct debit, its just too expensive and wouldnt make any sense.
Every commercial bank has a SDD feature where its 0% and just 0.10€ - 0.20€ transaction cost

Re placing a hold:
No, its a hold, not a charge. It would be similar to what every airline does when making a booking with more than 1 passenger on it, they put a hold of the total amount on the card and then submit an offline transaction for each passenger seperately. They don’t remove the hold and just let it expire (sucks)

Also a few hotels / car rentals,… submit offline transaction after putting an AUTH on the card already.

I really dont see an issue putting a hold on 1 of the underlying cards (I’m sure most users have at least 1 credit card and not just debit cards)

Re ‘chargebacks’ for SDD.
If a user files a dispute for an SDD, Curve could instantly charge an underlying card, they even have that in the t&c already:>

Money owed to Curve

In the event you owe Curve money either for fees or transactions that you have made using Curve, we may immediately charge such amounts to any of your payment cards. We reserve the right to collect the amount of your debt to Curve by using any payments received to your Account.

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ok,
you got me.

The on-hold/auth is still not a great idea but a ‘ok’ solution.

SDD’s are still to easy to issue.