Betalingsservice

What is Betalingsservice?

Betalingsservice is a direct debit scheme that allows merchants to automatically collect payments in Danish kroner from customers’ bank accounts. This system operates through a pull-based payment mechanism, where the creditor initiates the payment after obtaining the customer’s authorization via a mandate. Managed by Nets, the clearing house for direct debits in Denmark, it has become an essential part of the Danish financial ecosystem.

How does it work?

Once you authorize a company (like your landlord or electricity provider), they can withdraw money from your account on agreed dates. You’ll always receive a pre-notification before each payment—so no surprises.

Common rules or requirements

• Customers must authorize merchants through a Betalingsservice mandate.
• Payments are processed on banking days, ensuring timely transactions.

Example

Imagine you have a monthly subscription for a streaming service. By setting up Betalingsservice, the service provider can automatically deduct the subscription fee from your bank account each month. You will receive a notification before the payment is made, allowing you to manage your finances effectively.

Quick Tips for Expats

Consider setting up Betalingsservice for regular bills like utilities, insurance, and subscriptions to avoid late payments.

In Denmark, landlords almost always require tenants to pay rent via Betalingsservice. This means you’ll need a Danish bank account and access to online banking to sign up. Once set up, your rent is automatically paid on time each month—helping you stay on top of your financial commitments and avoid missed payments.

Always monitor your bank account to ensure you have sufficient funds to cover automated payments. You’ll receive advance notice of each payment through your online banking platform or Betalingsservice app.