For some countries, direct debit is the main payment system, whereas some countries like to push e-invoice to be main payment system.
Both are really good ways for merchant but also for consumers to receive/ pay money. When talking with merchant, their only worry or request is to get money as easy as possible without scarifying too much energy or resources. Same thing goes for consumer,
as long as payment is valid and predictable, it goes without any energy, it is always good.
I would like to make a list about negative/ positive things about both payment systems, but also where and when you would prefer one payment system over another.
To start, here are benefits of direct debit when consumer:
- easy to understand, makes sense when paying recurring small payments or loans or other same value transactions, paying for trusted party
Same list for merchant:
- no need to send invoice when recurring payment, automates process, it is possible all over Europe (in theory)
To understand benefits for e-invoice when consumer is using:
- saves nature, it can be semi or totally automated, when value of transaction is changing and needs to be verified, payment date can be changed if account doesn't have sufficient amount
For merchant e-invoice is good when:
- consumers are in one country, faster sending, cheaper than paper invoices, can be automated
Things I would like to use DD are:
- third sector recurring payments
- paying gym, online access or online movie (flat rate) rental fees
Things where e-invoice is good are:
- when paying every month mobile connection fees
- other payments where value of transaction is changing
Give your voice and tell me where DD beats e-invoice and vice versa.