Recurring billing in the Netherlands looks different from how it does in other markets. Credit cards cover only a fraction of online payments. And about three-quarters of Dutch ecommerce payments are made with iDEAL, which is a method built for single transfers, not ongoing charges. That gap creates a challenge for businesses: how do they deliver subscriptions or memberships in a country where the dominant payment option can’t handle renewals on its own?

Below, we’ll explain how recurring billing works in the Dutch market, including why iDEAL alone isn’t enough, how direct debit (automatische incasso in Dutch) via iDEAL creates a workable model for subscriptions, how Stripe enables that flow in practice, and which businesses benefit most.

What’s in this article?

• Why is recurring billing a challenge in the Netherlands?
  
• How does the iDEAL and SEPA Direct Debit model work?
  
• How does Stripe make iDEAL subscriptions possible?
  
• What types of businesses benefit most from this setup?
  
• How Stripe Billing can help
  

Why is recurring billing a challenge in the Netherlands?

If you sell subscriptions in the Netherlands, you’ll probably notice that customers overwhelmingly pay online with iDEAL even though it wasn’t built for automatic charges. This payment method facilitates bank-to-bank payments that customers need to approve, each time, through their banking apps. It’s a useful option for a single transaction but can be awkward when used for monthly renewals.

Credit cards don’t fully solve this problem because they’re not as popular for online transactions as iDEAL. If your subscription flow depends on card storage, you could miss your chance with Dutch buyers who either don’t have cards or prefer to pay through their banks.

A common solution for recurring purchases in Europe is Single Euro Payments Area (SEPA) Direct Debit, which allows businesses to pull funds on a schedule after the customer authorizes a mandate. Historically, setting up that mandate created friction by requiring paper forms, separate bank flows, and extra steps at sign-up. Many businesses defaulted to manual bank transfers or standing orders for renewals, which can increase the likelihood of late payments.

The result is a gap between the payment methods Dutch customers trust (iDEAL, via their own banks) and a setup that works for businesses (automated renewals). Closing that gap is key to healthy conversion and steady renewals. The solution is to keep the familiar iDEAL experience for the first interaction while putting a compliant direct debit mandate behind it. This way, future charges run without businesses needing to remind customers to return to their banking apps every month.

How does the iDEAL and SEPA Direct Debit model work?

In this model, iDEAL collects a customer’s bank authorization once, then runs future charges through SEPA Direct Debit.

Here’s how it works:

• Checkout and selection: A customer signs up for a subscription on your site and chooses iDEAL at checkout. They select their bank in the iDEAL list and are taken to their bank’s secure portal.

• Initial payment and authentication: The customer approves a transaction through their banking app. This is either the first subscription payment or, in some cases, an authorization charge as small as €0.01. This step is part of what makes iDEAL so trusted by Dutch customers: every payment is confirmed directly with the customer’s bank credentials.

• Immediate confirmation: iDEAL quickly reports success back to your system or your payment provider. If the payment was the first for a subscription, funds are sent. If it was a €0.01 authorization, that charge is refunded.

• Mandate creation: The customer’s International Bank Account Number (IBAN) is saved and linked to a SEPA Direct Debit mandate. You now have the authorization needed to pull future payments from that account. There’s no separate form for the customer to fill out and no need to enter bank details manually.

• Future payment setup: From this point forward, subscription renewals are charged via SEPA Direct Debit. Direct debits typically take a few business days to settle.

How does Stripe make iDEAL subscriptions possible?

Stripe operates as a manager of these two systems, which reduces the burden on businesses that are trying to set up recurring transactions for their customers. This is how Stripe connects iDEAL and SEPA Direct Debit.

Linking, payment, and renewals

Stripe Checkout links iDEAL and SEPA Direct Debit so the first iDEAL payment also sets up everything needed for recurring charges. Subsequent invoices are charged automatically by SEPA Direct Debit.

Mandate capture

Stripe records each customer’s iDEAL authorization and simultaneously generates a SEPA Direct Debit mandate. The customer’s IBAN is safely stored and linked to that mandate so future debits can be scheduled.

Compliance and notifications

SEPA Direct Debit requires businesses to retain mandate records and notify customers in advance of each debit. Stripe handles mandate references and provides tools to send pre-debit notifications so the flow remains compliant with SEPA requirements.

Retries and refunds

If a debit fails, Stripe marks the payment as unsuccessful and can retry it according to configured rules. Customers have refund rights under SEPA and can dispute a payment through their banks up to eight weeks after a debit, no questions asked. Stripe processes these reversals and records them in the Stripe Dashboard.

What types of businesses benefit most from this setup?

Companies in the Netherlands that provide the following services are the most likely to benefit from this type of setup:

• Software-as-a-service (SaaS) and digital subscriptions: Software, streaming platforms, and online media rely on renewals. Accepting iDEAL at sign-up can improve conversion, while SEPA Direct Debit can keep retention steady without interrupting service due to card declines or expirations.

• Subscription boxes and recurring retail: For businesses from coffee clubs to beauty kit distributors, margins are tight and predictability matters. Direct debit tends to cost less per transaction than cards, which can add up at scale.

• Nonprofits and donation programs: Recurring giving flourishes on a low-friction setup. Many Dutch donors are accustomed to using iDEAL for one-off gifts so letting them use it to authorize ongoing contributions makes recurring giving easier to commit to. It’s also more reliable for the organization.

• B2B services and invoices: Businesses that pay retainers or installments often prefer direct bank payments over cards. Using iDEAL to establish the mandate enables automated, on-time settlement of larger recurring sums.

How Stripe Billing can help

Stripe Billing lets you bill and manage customers however you want—from simple recurring billing to usage-based billing and sales-negotiated contracts. Start accepting recurring payments globally in minutes—no code required—or build a custom integration using the application programming interface (API).

Stripe Billing can help you:

• Offer flexible pricing: Respond to user demand faster with flexible pricing models, including usage-based, tiered, flat-fee plus overage, and more. Support for coupons, free trials, proration, and add-ons is built in.

• Expand globally: Increase conversion by offering customers’ preferred payment methods. Stripe supports 100+ local payment methods and 130+ currencies.

• Increase revenue and reduce churn: Improve revenue capture and reduce involuntary churn with Smart Retries and recovery workflow automations. Stripe recovery tools helped users recover over $6.5 billion in revenue in 2024.

• Boost efficiency: Use Stripe’s modular tax, revenue reporting, and data tools to consolidate multiple revenue systems into one. Easily integrate with third-party software.

Learn more about Stripe Billing, or get started today.