The verdict in three sentences
For recurring B2B invoices (subscriptions, maintenance, supplies), SEPA direct debit is the cheapest and most predictable collection method: EUR 0.25 to 0.80 per transaction, versus 1.5 to 2.9% for a business card. Cards remain useful for first orders, small amounts and customers who refuse a mandate. The right setup combines an electronic SEPA mandate by default, card as an option and bank transfer with automatic reconciliation, all built into the customer portal ahead of mandatory e-invoicing. In the UK, the same logic applies with Bacs Direct Debit.
The real fees of each payment method
The figures below are 2026 orders of magnitude observed with payment service providers (PSPs) and eurozone banks for an SME. Business and corporate cards are not covered by the interchange caps that apply to consumer cards, hence higher fees.
| Criterion | Card (business cards) | SEPA Core direct debit | SEPA B2B direct debit | Transfer with reconciliation |
|---|---|---|---|---|
| Fee per transaction | 1.5 to 2.9% + EUR 0.10 to 0.25 | EUR 0.25 to 0.80 | EUR 0.40 to 1.20 | EUR 0 to 0.20 + tool EUR 30 to 150/month |
| Fee on EUR 450 | EUR 6.85 to 13.30 | EUR 0.25 to 0.80 | EUR 0.40 to 1.20 | EUR 0 to 0.20 |
| Limit per payment | Often EUR 3,000 to 10,000 | None in practice | None in practice | None |
| Settlement time | D+1 to D+3 | D+2 to D+5 | D+2 to D+5 | Variable, payer-initiated |
| Payer dispute right | Chargeback up to 120 days | 8 weeks no-questions, 13 months if unauthorised | No refund if mandate valid | None |
| Cost of a failure | EUR 15 to 25 per dispute | EUR 2.50 to 8 per return | EUR 2.50 to 8 per return | Not applicable |
| Effect on DSO | Immediate payment | Guaranteed on due date | Guaranteed on due date | DSO of 45 to 60 days is common |
SEPA B2B is often overlooked: it removes the 8-week refund right, but the customer must register the mandate with its bank, which slows adoption among small firms. SEPA Core remains the standard for 80 to 90% of SME customers. In the UK, Bacs Direct Debit typically costs GBP 0.20 to 0.50 per collection or 1% capped at GBP 2 with major PSPs.
Impact on a company billing 2,000 customers a month
Take an average invoice of EUR 450 and 24,000 invoices a year, or EUR 10.8 million collected.
| Scenario | Estimated annual fees | Average DSO | Admin workload |
|---|---|---|---|
| 100% transfer, no tool | EUR 0 bank fees | 52 days | 1.5 FTE on chasing and matching |
| 100% card | EUR 162,000 to 313,000 | 2 days | Low |
| 100% SEPA Core | EUR 6,000 to 19,200 | 5 days | 0.3 FTE (returns, mandates) |
| Mix 75% SEPA, 15% card, 10% transfer | EUR 30,000 to 62,000 | 9 days | 0.4 FTE |
| SEPA returns (1.5% of debits) | EUR 900 to 2,900 in fees | Not applicable | Automated follow-up |
Moving from transfer to SEPA debit cuts DSO by about 40 days. On EUR 10.8 million a year, that frees nearly EUR 1.2 million of cash, or EUR 40,000 to 60,000 of interest saved annually on a credit line at 4 or 5%.
Building payment into the customer portal and e-invoicing
France requires all companies to receive e-invoices from 1 September 2026 and SMEs to issue them from 1 September 2027 through an approved platform; Belgium has mandated B2B e-invoicing since January 2026, and other EU states follow under the ViDA package. This is the right moment to link invoice and payment: the e-invoice carries the SEPA mandate reference, the customer portal shows due dates, and the paid status flows back automatically.
A typical project includes an electronic SEPA mandate signed online (eIDAS-compliant signature, archiving), a customer area with invoice history and downloads, cards through a PSP with 3-D Secure, a module that reconciles transfers by reference, and an accounting connector. Budget: EUR 8,000 to 20,000 depending on existing systems, 6 to 10 weeks of work.
Mini case study
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Nathalie, CFO of an equipment maintenance company in Nantes, bills 1,200 contracts of EUR 450 a month, 60% by card and 40% by transfer. Current card fees: 720 payments × EUR 9 = EUR 6,480 a month, or EUR 77,760 a year. After moving 80% of customers to SEPA Core (960 debits at EUR 0.50) and keeping 20% on card (240 × EUR 9), fees fall to EUR 2,640 a month, or EUR 31,680 a year. Savings reach EUR 46,080 a year for a portal and e-mandate project billed EUR 14,000: payback in under 4 months, before counting the lower DSO from eliminating late transfers.
FAQ
Can we require SEPA direct debit from business customers?
You can make it the default payment method in your terms, with a 1 to 2% discount or a handling fee for other methods. Surcharging is banned for consumer cards but regulated for commercial cards.
How much does a returned debit cost?
Allow EUR 2.50 to 8 in bank fees per return, plus chasing costs. With a return rate of 1 to 2%, the impact remains marginal compared with card fees.
How long between mandate signature and first debit?
The customer must be notified at least 14 days before the due date, unless the contract says otherwise (often reduced to 2 to 5 days). The first debit can therefore happen within one to two weeks.
Are business cards still worth offering?
Yes for new customers, one-off orders under EUR 200 and buyers paying with a purchasing card. Above EUR 300, SEPA is almost always more profitable.
Do we need new software for e-invoicing?
Not necessarily: many ERPs connect to an approved platform. Integration with the payment portal adds EUR 3,000 to 7,000 to the budget.
Let's scope your project. Tell us your invoice volume, average invoice value and current tools: we will price the scope, indicative budget and timeline to build payment into your customer portal. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
