MASAV Direct Debits: How the Technical Flow Works and When Card Payments Fit Better

Choosing between direct debit and card payments is not only a fee decision. It changes how authorization is received, the collection timeline, return handling, customer support, and fit with the commercial model. MASAV operates Israel system for debits, credits, and payment transfers and publishes the relevant instructions and specifications.

Before building collection automation, define the collection contract: is the amount fixed or variable, can the customer freeze service, what happens on a return, who contacts the customer, and how are receipt or invoice events recorded? Automation has little value if the system cannot distinguish between a created charge, transmitted charge, accepted charge, and returned charge.

When each route can fit

Direct debit can fit an ongoing customer relationship with a structured authorization and service process. Card payment can fit an immediate purchase, a faster checkout conversion, or a case where the customer needs to update payment details. This is not financial advice; it is a starting point for specification.

Whichever route is selected, build a status model: awaiting authorization, ready to transmit, transmitted, accepted, declined, returned, in review, and paid by an alternative method. Every state transition should come from a recorded event, not only a manual field change.

Source

MASAV - Automated Clearing House