Dutch bank ING introduces online direct debit mandates
ING today has introduced digital direct debit mandates for its customers. The Dutch bank is the first to offer this service in the Netherlands. Businesses and government agencies are now able to let their customers pay online by authorizing for payments to be collected from them in the future.
ING announced the news in a press release, where it also says it expects other banks soon to offer this service as well. “This new payment method is based on an inter-bank standard that’s being managed by the Dutch banking association Betaalvereniging Nederland, so in time other banks can start offering this to their customers.”
Debt validation and debt verification often still occur via paper and mail. But with the new service called “Incassomachtigingen” companies and institutions can offer this payment method on their website for recurring payments and direct debits. Authorization and verification takes place online via ING, so no more paper-based authorization is needed.
For consumers, paying using this method is in fact no different from what they are used to. When they want to complete the payment, they will see the same interface as they would with paying using iDEAL (by far the most popular online payment method in the Netherlands). “This method also provides security directly to consumers, who now can reverse the money transfer if they don’t get the goods they paid for.”
According to Piet Mallekoote, managing director of Betaalvereniging Nederland, digital direct debit mandates are a useful addition to the current online payment methods. “It satisfies the needs of many businesses and consumers who want to manage direct debit payments safely, easily and fast.”