Recurring payments without direct debit: how it works

When people talk about recurring payments, they almost always think of direct debit: the customer gives an authorization once, then their account is debited at each due date. It is convenient for the collector, less so for the customer, and not every organization can set it up.

There is another approach: a subscription that generates the invoices, and a bank transfer from the customer at each due date.

The principle

1. A subscription is created: customer, label, frequency (monthly, quarterly, annual), start date and optional end date.
2. At each due date, an invoice is issued automatically, on its date.
3. The customer pays it by bank transfer from their bank.
4. The bank confirms, the invoice moves to “paid”, the issuer is notified.
5. If nothing arrives, the delay is detected and the customer is chased.

This is how virement.tn recurring payments work: up to 24 installments can be generated in advance, and the customer is notified at each due date.

The advantages

• No sensitive data to store: no card number, no direct-debit mandate. Only the destination RIB is involved.
• The customer stays in control: they trigger each payment and can suspend their subscription.
• A payment attached to an invoice: no more manual reconciliation.
• Usable without any specific banking arrangement on the organization's part.

The limits, honestly

• Payment is not guaranteed on the date. If the customer forgets, the transfer arrives late — hence the importance of reminders and follow-ups.
• Less suited to services where immediate interruption in case of non-payment is critical and where automatic payment is essential.

Good practices

• Remind before the due date: a simple reminder avoids a good share of oversights.
• Set a ceiling on the automatically confirmed amount: for a customer already committed, invoices under this ceiling are confirmed with no new code.
• Set the delay rules in advance: tolerance period, follow-ups, consequence of prolonged non-payment.
• Choose the right frequency: monthly for current charges, quarterly or annual for premiums and membership fees.

When to prefer an installment plan?

If the total is known and must be settled in a defined number of installments, an installment payment plan is better suited: it has a start, an end and a total amount. For financing contracts, see leasing.