Use cases for Betalingsservice
Last editedMay 2022 1 min read
Betalingsservice is perfect to collect regular and invoice payments in Denmark.
Direct Debit can be great payment method in a number of circumstances. However, it should also be noted that in some situations Direct Debit is less favourable.
Betalingsservice is the preferred option for...
Regular payments. If you pay for a service more than once, for example a gym membership or a web hosting subscription, then Direct Debit is a great way to pay. Unlike cards, bank accounts do not suffer from expiry dates so you'll notice much higher customer retention.
Invoicing. Where instant payment for services isn’t always necessary, for example work provided by accountancy firms and marketing agencies.
Ongoing customer relationships. For those customers you know you’ll be taking payments from in the future, but perhaps on a more ad hoc basis such as wholesalers. With Direct Debit there’s no need to re-enter your customer’s details each time you require payment.
Direct Debit may not be the best option for...
Payments that require immediate settlement. Direct Debit is not an instant payment method. See our timings section for more details.
Liquid assets and high value goods. An example of this is cars or currency. If a bank account is debited without authorisation, the merchant may be exposed to financial loss and could be a target for fraudsters.
Direct Debit payments through GoCardless
GoCardless gives you quick access to Betalingsservice. This is great for:
Digital businesses. Build GoCardless into your website or CRM with our simple and extensively documented API, enabling greater automation within your payment processes.
Invoicing. The GoCardless API will let you build automatic reconciliation into any invoicing software.
International businesses. GoCardless is the only Direct Debit bureau that can enable you to collect from Betalingsservice (Denmark), BECS (Australia), SEPA (Eurozone), Bg Autogiro (Sweden) and Bacs (UK) schemes.
Small businesses. There's no need to negotiate with your bank or Nets to get access to Direct Debit, GoCardless manages this on your behalf.
Direct Debit in Denmark
Nets is the Payment Service Provider in Denmark, previously known as PBS. They are responsible for providing a variety of payment services throughout the country, including Direct Debit payments.
There are two main types of Direct Debit in Denmark:
Betalingsservice:Â the most popular type of Direct Debit within households, it is used by approximately 94% to pay their bills. Betalingsservice can be used for both B2B and B2C payments.
The LeverandørService: only used for B2B payments whereby the payers may only be businesses.
GoCardless and Danish Direct debit
GoCardless allows merchants and partners to power Direct Debit payments via Betalingsservice. It is a very versatile option, allowing a whole range of payees from large corporate enterprises to private individuals and microenterprises to pay easily; it is the most popular method for settling everyday recurring payments.