Lastschrift, or direct debit, is a very popular payment method when it comes to online shopping, automated payments or casino betting 💶 It is the second most popular method for financial transactions in Germany after bank transfers 🫰 In this article you will find all the information you need to know about it, as well as its advantages and disadvantages 🏦
The biggest advantage of direct debit methods is that they are reversible. This means that if you have made a direct debit in error, you have the right to claim it back.
In Germany, millions of direct debits are made every year. Based on the above, we would also have the right to reclaim a direct debit in the case of casinos, but then the casino would go bankrupt.
In this article you can find out how a casino Lastschrift works, as it is a popular payment method.
A direct debit is an order that you give to a bank as a user, authorising the company or organisation you have given through the bank to debit a certain amount from your account. However, this is subject to one condition: the company must tell you in advance how much they want to withdraw and when. The instruction you then give to the bank is called a direct debit.
In Germany, casino Lastschrift is the second most popular and most frequently used payment method after bank transfers. But do not confuse it with ELV!
A digital casino where you have the option to use direct debit to make a deposit - meaning that the deposit is automatically debited from your account. They use SEPA direct debit to do this, so you will need to give your casino SEPA authorisation to do this.
You will need to authorise this by signature in most cases, but thanks to technological advances in recent years, you now have the option to submit an electronic mandate.
You must first authorise a direct debit, which will automatically debit your account on the day the payment is due. The company does not have to do anything. So it's a very simple and convenient way for you to make both regular and irregular payments.
Why? Mainly because you don't have to actively take care of anything, as you would have to do with other payment methods, such as card payments or bank transfers. The process is fully automated, all you need is your authorisation.
Because it's automated, it allows you to have the money collected directly from your bank account by a company on the day the payment is due. This is more cost-effective for you because it is a direct, inter-bank transaction. And if you pay by card, you will also be charged third-party fees.
In Germany, casino Lastschrift is processed via SEPA because it allows cross-border payments from the European Union, making this type of payment even more convenient.
SEPA is an acronym for Single Euro Payments Area. The name encapsulates the function, as it aims to unite the entire European payments area under one hat. Introduced in 2014, it quickly caught on in Germany and has been widely used ever since, especially in cases where a payment is recurring.
SEPA can be offered by all casinos in the European Union, whether physical or online, so of course all online gambling sites in Germany can offer it.
In a bank transfer, you enter your payment details and you issue the instruction manually to send the funds to the payee. With a direct debit, all this is automated, you don't need to use online banking, you don't need to fill in a form - you don't need to do anything, just give the authorisation.
That's why Lastschrift is much faster than bank transfers, and your payment arrives at the casino almost instantly. However, be prepared that the confirmation of your payment credit will not arrive immediately, it can take several days.
With a bank transfer, it may also take longer for the deposit to arrive, and you will have to issue the payment instructions yourself.
As I mentioned at the beginning of this article, you can refuse direct debit, but not only you as a bank customer, but also the bank itself. For example, if you do not have enough money in your account, the bank will automatically reject it.
You benefit from the possibility to refuse because you can reverse the direct debit at any time. Yes, even if you have lost your money in the casino. No wonder most internet casinos do not offer direct debit as a payment method. It requires mutual trust between the payer and the payee.
Clearly, they are most useful for regularly recurring payments, such as monthly fixed charges, subscriptions, etc., so any recurring payment is perfect for direct debit because it is the simplest, cheapest and safest solution for such payments. However, this does not mean that it cannot be used for one-off payments.
Importantly, it is not for instant payments. Although it can be used for online purchases, it is not the most suitable because most online businesses require immediate payments, which a direct debit cannot fulfil.
In summary, it is more recommended for online payments where the payee does not require immediate payment and can wait up to three days for it to be made. Direct debit is popular because it has low fees and a higher success rate than card payments.
Using this method is a surprisingly simple way to deposit, but to make sure you don't get stuck, we've put together a step-by-step guide.
One of the main disadvantages of direct debit in the gambling world is that it can only be used for deposits, not withdrawals. SEPA only allows and automates the initiation of payments, not their reception.
This means that you cannot choose this method to request a withdrawal in digital casinos. Unfortunately, this problem does not only affect this type of payment method, but also, for example, Sofortüberweisung.
A reputable casino takes its share of user protection and anti-money laundering regulations. One of the conditions for this is to be able to choose the same payment method at the cashier as you chose for depositing. However, in some cases this is not possible, such as direct debits.
In such cases, if the casino does not allow you to use the same deposit method for withdrawals, a good casino will transfer your winnings to your bank account itself. This usually takes several days, which is why it's a good idea to look for a casino with a reputation for fast payouts.
The direct bank transfer method is one of the safest ways to make financial transactions at a casino. Did you know that you can cancel your direct debit up to six weeks after your payment has been approved?
Of course, the honest thing to do is to do this only and exclusively in the case of unauthorised withdrawals, but let me tell you a secret: there's nothing to stop you from claiming your money back even if everything else went smoothly and no unauthorised withdrawals were made. In other words, you have the opportunity to get back your entire lost stake, even if it's not a pretty thing.
To make a direct debit deposit to the casino, you will need to provide your bank account number. However, you can opt out of the electronic direct debit procedure at any time and cancel your SEPA mandate.
This means that direct debit is safe for you as a German player, but much less so for digital casinos. Due to the uncertainty, reputable casinos cannot accept SEPA direct debit payments.
Direct debit is so convenient because it can be done without a third party, so you don't have to register with another provider to have your bank account debited. Few methods of conducting financial transactions are safer than this, especially if you're an online gambler. And the cancellation facility that comes with it makes it unique.
But we all know it's not all sunshine and happiness. Below you can read about the pros and cons of direct banking.
| Pros | Cons |
|---|---|
| faster than bank transfer | not available in most digital casinos |
| secure payment method in Germany | cannot be used to accept payments |
| payments can be reversed | can take several days to complete |
| fully automated | only useful for direct debits |
| no third party is required | it has limitations |
| no extra fees |
Direct Debit has many individual limits, which are best found in your own online banking account settings. For example, the maximum amount a direct debit can deduct from your bank account.
Casinos that allow direct debits usually do not charge any extra fees. However, these platforms are free to set their own rules up to a certain level (depending on the gambling authority's authorisation) and these may differ from the general, standard rules.
You should therefore always read the terms and conditions of use and the casino's cashier to find out the terms and conditions of the method you have chosen for your financial transactions. A better casino will provide details of the fees for each deposit and withdrawal.
Direct debit is essentially a form of bank transfer, but from what you've read so far, you'll know that it's different, not the same. What they do have in common is that they do not charge you any additional fees for using them.
Most digital casinos try to offer their users popular payment providers that either don't charge extra at all or charge very minimal amounts for transactions. But this is not the case for all casinos.
In addition to the classic bank transfer method, SEPA direct debit is the most common method of payment in Germany. This means that it is a method that can be used legally.
There are several types of SEPA authorisation if direct debit is to be approved. On the one hand, there is the analogue, undersubscribed method. Then there is the electronic mandate, but you have to sign that after you submit it to the casino.
Your bank information used under the direct debit mandate will not be transmitted to the German tax authorities, only in certain cases. Do not be alarmed, these are pretty extreme cases, for example if there is a court order pending against you or you are the suspect of a tax fraud or money laundering charge. In such cases, your bank is obliged to give the tax authorities the account details you have requested.
Direct debit orders are debited directly from your bank account, so you should know that your bank will also report them to the tax authorities immediately and automatically. If you are suspected of tax fraud, your casino is also obliged to notify the responsible authorities.
However, there are countries where there is no tax liability, so winnings do not have to be declared.
The proliferation of direct debit for deposits in digital casinos is unlikely, at least not as long as players have the right to return funds. However, direct debit is a very common and secure method, and the most useful for regular payments.
Of course, it has its drawbacks, as everything does: it can only be used for payments, it is not suitable for receiving payments. There are alternatives that are favourable to casinos, such as Trustly and Klarna. These also allow for fast payments via bank account and provide casinos with the necessary security.
Most commonly those that are licensed by the German gaming authorities, but even these usually only offer direct deposit via PayPal. To use PayPal you need to create a PayPal account where you enter your bank details, which will then be verified.
Unfortunately, it is not possible to request withdrawals via direct debit, which means that you cannot choose this method when you want to withdraw your winnings from a digital casino. SEPA Direct Debit mandates are only suitable for you to pay out funds to your beneficiaries, so for casinos where you have the option of direct debit, you can only use this for deposits.
Yes, there are alternatives. One of the best ones is most likely PayPal. If you deposit your account details here, you can make your casino deposits by direct debit. Other suitable alternatives are Trustly and Giropay, which also allow you to use the services of online banks conveniently.
Yes, it is. It is also true for digital casinos, which is why you will find few casinos where this method is allowed. In case of unauthorised debit, you can reverse your payment after up to six weeks and you don't even have to give an explanation. However, it's not only in the case of an unauthorised payment that you can claim it back, but also if you simply lost your winnings, for example, which is why casinos that allow this method are rare.
The main advantages of direct debit are that it is convenient, fast, does not require registration with a third party and is incredibly secure. In fact, it is one of the safest payment methods in Germany. It is also faster than a traditional bank transfer, payments are easily reversible, it is a fully automated system, and it does not charge extra fees. One of the disadvantages is that it is not available for deposits or withdrawals at the better-known digital casinos. Where it is available, it can take several days to transfer money, not all SEPA mandates are supported, it also cannot be used to receive money and has its limitations.
