--- title: "Secure Revenue with Novalnet: Payment Guarantee for Invoice and SEPA Direct Debit" description: "Offer invoice and SEPA Direct Debit without default risk. Learn how Novalnet payment guarantee works, who qualifies and how to activate it." url: "https://www.gowrishankar.me/blog/secure-revenue-with-novalnet-payment-guarantee-for-invoice-and-sepa-direct-debit" author: "Gowri Shankar Balasubramaniam" published: 2026-10-16T04:44:55.684Z category: "FinTech & Payments" tags: ["DACH Payments","E-commerce Payments","Guaranteed Payments","Novalnet","PSD2","Payment Guarantee","Payment Risk Management","Payment Security","Purchase on Invoice","SEPA Direct Debit"] --- # Secure Revenue with Novalnet: Payment Guarantee for Invoice and SEPA Direct Debit > The Novalnet payment guarantee is a service in which Novalnet AG, a BaFin-licensed payment institution, covers the risk of customer non-payment on approved invoice and SEPA Direct Debit orders. Merchants receive the full order amount even if the customer never pays. It applies to B2C customers in Germany, Austria and Switzerland and B2B customers in the EU and Switzerland, for EUR orders from EUR 9.99. ## Key takeaways - Novalnet AG assumes the payment default risk on approved invoice and SEPA Direct Debit transactions. - Merchants receive the full order amount, even if the customer does not pay. - The guarantee covers Invoice with Guarantee, SEPA Direct Debit with Guarantee and guaranteed instalments. - B2C customers must be in Germany, Austria or Switzerland; B2B customers in the EU or Switzerland. - Transactions must be in EUR, at least EUR 9.99, with billing and shipping addresses matching. - A real-time credit and identity check runs before every guaranteed transaction is approved. - SEPA Direct Debit returns and refund claims no longer cause revenue loss on guaranteed orders. - Novalnet handles reminders, dunning and debt collection on behalf of the merchant. - Activation takes place in the Novalnet Admin Portal, with integration through plugins, the Hosted Payment Page or the API. - Merchants remain responsible for GDPR compliance, IBAN data protection and SEPA mandate handling. ## Why do invoice and SEPA Direct Debit payments need a guarantee? Purchase on invoice and SEPA Direct Debit are among the most trusted payment methods in Germany, Austria and Switzerland, and they consistently lift checkout conversion. The catch is simple: the merchant ships first and is paid later, which exposes the business to non-payment, insufficient funds and direct debit returns. For many merchants, this default risk is the main reason to restrict or avoid these methods altogether. That trade-off means turning away customers who expect to pay the way they always have. A payment guarantee removes that trade-off. The customer keeps the payment method they prefer, and the merchant receives the purchase amount even if the customer never pays. ## How does the Novalnet payment guarantee work? Novalnet AG is a Germany-based, BaFin-licensed payment institution that provides payment processing, risk management and guaranteed payment services for merchants. For approved invoice and SEPA Direct Debit transactions covered by its payment guarantee, Novalnet assumes the risk of payment default in accordance with the applicable terms and conditions. If a covered transaction qualifies under the guarantee, the merchant receives the guaranteed amount even if the customer fails to pay ([Novalnet]()). The process follows five steps ([Novalnet Developer Portal]()): 1. The customer selects Invoice with Guarantee or SEPA Direct Debit with Guarantee at checkout. 2. For SEPA, the customer accepts a SEPA mandate authorising the debit from their bank account. 3. Novalnet runs a real-time credit and identity check through credit bureaus and validates the bank details. 4. If the customer passes, Novalnet issues the payment guarantee and the merchant ships the goods. 5. If the customer later fails to pay, Novalnet bears the loss and pays out the order amount to the merchant. Dunning, reminders and debt collection move to Novalnet and its collection partners, so the merchant no longer runs receivables management for these orders. ![Secure Revenue with Novalnet: Payment Guarantee for Invoice and SEPA Direct Debit]() ## Who is eligible for the Novalnet payment guarantee? The guarantee applies only when the transaction meets Novalnet's baseline conditions: | Requirement | Condition | | --- | --- | | B2C customer countries | Germany, Austria, Switzerland | | B2B customer countries | European Union and Switzerland | | Currency | EUR | | Minimum order amount | EUR 9.99 | | Customer age (B2C) | 18 years or older; date of birth required | | B2B customers | Company name required | | Addresses | Billing address must match shipping address | Source: [Novalnet Developer Portal](). Merchants can configure a higher minimum order amount in their plugin settings. ## How does invoice with payment guarantee work? Purchase on invoice lets customers receive and inspect their goods before paying. With Novalnet's guarantee, the merchant keeps that customer experience while transferring the non-payment risk entirely to Novalnet ([Novalnet]()). Key characteristics: - **Payout independent of customer payment.** Once the order is approved, Novalnet settles on behalf of the customer and handles all follow-up steps. - **B2C and B2B coverage.** The guarantee applies to consumer and business orders, subject to the eligibility rules above. - **White-label presentation.** The payment method appears under the merchant's brand, keeping the shop in the foreground. - **Fair customer handling.** Novalnet takes an individual approach to customers who fall behind, which protects the merchant's reputation. - **Configurable due date.** In supported plugins, the invoice due date is set in days and must exceed 7 days ([Novalnet Developer Portal]()). For customers who prefer to spread costs, Novalnet also offers guaranteed instalment payments by invoice, with dunning handled by Novalnet and no reminder fees charged ([Novalnet Developer Portal]()). ## Does the guarantee protect against SEPA Direct Debit returns? Under the SEPA Core scheme, a consumer can claim a refund of an authorised debit for up to 8 weeks without giving a reason, and up to 13 months for an unauthorised debit under PSD2 Article 71 ([EUR-Lex]()). Debits can also be returned for insufficient funds or closed accounts. On approved transactions, the Novalnet payment guarantee absorbs these losses. Key characteristics: - **Mandate-based collection.** The customer grants a SEPA mandate at checkout; Novalnet collects the debit automatically. - **Bank detail validation.** Novalnet checks the IBAN and the customer's creditworthiness before issuing the guarantee. - **Configurable debit timing.** In supported plugins, the debit date can be set between 3 and 14 days after the order ([Novalnet Developer Portal]()). - **Subscriptions and repeat purchases.** The guaranteed SEPA method supports tokenisation and recurring payments, which suits subscription models. - **Automated return debit management.** Chargebacks and returns are handled by Novalnet rather than by the merchant's finance team. Instalment payments by SEPA Direct Debit are also available with the same guarantee, with the first instalment debited at purchase. ## What are the benefits for merchants? The guarantee turns two high-conversion but high-risk payment methods into predictable revenue. | Benefit | What it means in practice | | --- | --- | | Predictable cash flow | Approved orders are paid out regardless of customer behaviour | | Higher conversion | Customers in DACH can pay the way they already trust | | Lower operating cost | No in-house dunning, reminders or collections for guaranteed orders | | Reduced fraud exposure | Credit and identity checks run before goods are shipped | | Funds protection | Novalnet holds funds in an insolvency-proof escrow account until payout ([Novalnet]()) | | Scalable B2B sales | Business customers across the EU and Switzerland can buy on account | The main trade-off is that not every customer qualifies. Merchants should decide in advance whether to fall back to a non-guaranteed method or to offer alternative payment options when the check fails. ## What security and compliance duties remain with the merchant? A guarantee transfers credit risk, but it does not transfer the merchant's own data protection and security obligations. The points below should be addressed before going live. - **Regulated counterparty.** Novalnet operates as a BaFin-licensed payment institution, which provides regulatory oversight of the guarantee and payout process ([Novalnet]()). - **GDPR and credit checks.** Guaranteed payments involve sharing personal data, including date of birth, with credit bureaus. Update the privacy notice to disclose the credit check, its legal basis and the recipients, and minimise what is collected. - **IBAN and mandate data.** Bank account details are not cardholder data, so PCI DSS does not formally apply. They are still sensitive financial data: encrypt them in transit and at rest, mask them in logs, and restrict access on a least-privilege basis. - **SEPA mandate handling.** Store mandate references and consent evidence reliably. Pre-notification of the debit amount and date is required under the SEPA rulebook. - **Address and identity fraud.** The billing-equals-shipping rule reduces drop-shipping fraud. Complement it with velocity checks and device signals for high-value orders. - **API and webhook security.** Keep the payment access key in a secrets manager, never in source control. Verify the checksum on every Novalnet webhook notification before updating order status, and accept callbacks only over TLS. ## How do you activate the Novalnet payment guarantee? Activation takes place in the Novalnet Admin Portal, followed by integration through a shop plugin, the Hosted Payment Page or the direct Payment API ([Novalnet Integration Options]()). 1. Log in to the Novalnet Admin Portal and open Projects \> Payment Methods. 2. Activate Invoice with Guarantee and/or SEPA Direct Debit with Guarantee. If they are not listed, contact Novalnet support. 3. Choose an integration path: - Shop plugin (for example Shopify, WooCommerce, Magento) for the fastest setup. - Hosted Payment Page to keep payment data entry off your own systems. - Direct API, using the payment types `GUARANTEED_INVOICE` and `GUARANTEED_DIRECT_DEBIT_SEPA` ([Novalnet Developer Portal]()). 4. Configure guarantee settings: the minimum order amount, debit or due-date timing, and whether to fall back to a non-guaranteed method when conditions are not met. 5. Collect the required data at checkout: date of birth for B2C, company name for B2B, and matching billing and shipping addresses. 6. Test all approval and rejection paths in the sandbox using Novalnet's test data before going live. 7. Implement webhook handling so order status reflects payment confirmation, returns and refunds. > **Tip:** A practical tip: display the guaranteed methods only when the basket and customer meet the eligibility rules. This avoids late rejections that frustrate customers at the final step. ## Conclusion Invoice and SEPA Direct Debit remain essential for winning customers in the DACH market. Novalnet's payment guarantee lets merchants offer both without carrying the default risk, while handing off dunning and collections to a regulated provider. For merchants that want higher conversion, predictable cash flow and less receivables overhead, guaranteed payments are a straightforward next step. Review the eligibility conditions, align your privacy and data security controls, and activate the methods in the Novalnet Admin Portal. --- > **Note:** ## **Have Questions About Payment Guarantees? Let's Talk!** > > Are you looking to reduce payment risks and secure your revenue from invoice payments and SEPA Direct Debit transactions? Share your questions or challenges in the comments below. > > **Leave a comment to discuss how Novalnet's payment guarantee solutions can help your business minimise payment risks and improve cash flow.** > **Security advisory:** Personal Disclosure: I work at Novalnet AG. This post is based on publicly available documentation and reflects my personal views and opinions, not the official position of Novalnet AG. ## Questions and answers ### What is the Novalnet payment guarantee? The Novalnet payment guarantee is a service in which Novalnet AG assumes the payment default risk for approved invoice and SEPA Direct Debit transactions. After a successful credit check, the merchant receives the full order amount even if the customer never pays, and Novalnet handles dunning and collection. ### Which payment methods does the Novalnet guarantee cover? The guarantee covers Invoice with Guarantee and SEPA Direct Debit with Guarantee. Novalnet also offers guaranteed instalment payments through invoice or SEPA Direct Debit. All guaranteed methods are subject to a real-time credit check before the order is approved. ### Which countries are eligible for the Novalnet payment guarantee? For consumer (B2C) orders, the guarantee is available to customers in Germany, Austria and Switzerland. For business (B2B) orders, it covers customers in the European Union and Switzerland. Transactions must be in euros. ### What is the minimum order amount for a guaranteed payment? The minimum order amount for a Novalnet guaranteed payment is EUR 9.99. Merchants can set a higher minimum in their plugin configuration. Consumers must also be at least 18 years old, and the billing address must match the shipping address. ### Does the merchant get paid if the customer does not pay? Yes. If Novalnet approved the transaction under its guarantee, the merchant receives the full order amount even when the customer fails to pay. Novalnet takes over reminders and debt collection through its partner agencies. ### Does the guarantee protect against SEPA Direct Debit returns? Yes. Under the SEPA Core scheme, consumers can request a refund for up to eight weeks, and debits can bounce for insufficient funds. On guaranteed transactions, Novalnet manages these return debits and the merchant keeps the payout. ### How do I activate guaranteed payments with Novalnet? Log in to the Novalnet Admin Portal, open Projects and then Payment Methods, and activate Invoice with Guarantee or SEPA Direct Debit with Guarantee. Then integrate through a shop plugin, the Hosted Payment Page or the Payment API, and test in the sandbox. ## Sources - [Novalnet: Guaranteed Payments]() - [Novalnet: Purchase on Invoice with Payment Guarantee]() - [Novalnet: 100% Payment Assurance]() - [Novalnet Developer Portal: Guaranteed Payments]() - [Novalnet Developer Portal: Instalment Payments]() - [Novalnet Developer Portal: Plugin Module Options]() --- Source: https://www.gowrishankar.me/blog/secure-revenue-with-novalnet-payment-guarantee-for-invoice-and-sepa-direct-debit