LSV⁺ – Direct debits with right of objection
LSV⁺ is the process offered by the Swiss banks for the processing of direct debits with right of objection. It is suitable for companies that regularly collect amounts in francs or euro and which seek to offer their customers a simple and convenient mode of payment. LSV⁺ is used for both company and private customer business sectors and offers the best possible consumer protection through the right of objection.
A debit authorization from the debtor forms the basis for the collection of direct debits, along with a bank account for both parties, the debtor and the creditor. The creditor submits the direct debit electronically through an interface (such as e-banking) at his financial institution or to SIX Interbank Clearing (via payCOMweb or file transfer).
The collected bill sent will be left open in the creditor's accounts receivable until the direct debit is paid. Reconciliation occurs automatically upon receipt of the incoming payment on the basis of the reference number provided in the direct debit.
In LSV+ the debtor can object to a payment made at his/her financial institution – without having to provide a reason for doing so – up to 30 calendar days after notice of the debit to the account has been given. Such objections, however, arise rarely due to the close relationship of trust that generally exists between debtors and creditors.
Each transaction must contain an unambiguous reference number to ensure that the incoming payment can be allocated to the proper open entries in the account receivables. The file structure and the data fields of the transactions are described in the Appendix A 5 "LSV reference numbers" of the LSV+ Guidelines for creditors.