Does the German direct-debit system work with online payments?
We have the same direct-debit system in Norway, called BankAxept, which is managed by a consortium of banks; banks typically issue cards with both Visa and BankAxept built in. However, BankAxept does not work with online payments.
A new system, BankAxess, has been launched for online payments, but it has not been widely implemented yet, so most online stores offer payment by Visa/Mastercard. Visa/MC's fees are somewhat exuberant, so most stores also offer COD and payment by wire transfer as alternative options.
Direct debits as a buyer: You enter your bank account number in the "buy" form of some website and that's it.
Direct debits as a seller: You file the direct debit with your bank. This can normally be done online through a web interface or various APIs (e.g. HBCI). The transaction is then processed through the Eurozone's TARGET2 system, i.e. the amount is withdrawn from the buyer's bank account and credited to the seller's bank account. This works in the entire Eurozone and is supposed to not take longer than a day. In practice, some countries take longer. E.g. I've seen payments between Germany and Italy take 3 days, but between Germany and France or within Germany it always takes 1 day.
We have the same direct-debit system in Norway, called BankAxept, which is managed by a consortium of banks; banks typically issue cards with both Visa and BankAxept built in. However, BankAxept does not work with online payments.
A new system, BankAxess, has been launched for online payments, but it has not been widely implemented yet, so most online stores offer payment by Visa/Mastercard. Visa/MC's fees are somewhat exuberant, so most stores also offer COD and payment by wire transfer as alternative options.