New direct debit solution
According to the competent decision making body of the Swiss banks, LSV⁺ and BDD will be replaced by a new direct debit solution and combined with the e-bill.
The Swiss banks have decided to promote the e-bill and to combine it with the direct debit procedure. SIX has been mandated to integrate the new direct debit solution into the Paynet e-billing system and to align it with the automated e-billing processes by the end of 2018. The e-billing functionality shall be improved and upgraded at the same time. The combined solution brings benefits to the billers; debtors will be basically unaffected by the switchover. This means, for example, that existing debit authorizations will remain valid.
Benefits for financial institutions
- The specific data formats for direct debits are eliminated. This reduces the number of data formats to be maintained by a financial institution.
- Debit authorizations are managed in the Paynet System and incoming direct debits immediately checked for the presence of matching authorization. The financial institutions are thereby relieved from incorrect deliveries.
- The Paynet System converts direct debits into credit tranfers after examining the debit authorization. Thus the financial institutions receive the credit transfer orders in the new ISO standard.
- Objections by debtors can newly be processed in a completely electronic way on the interbank level.
Benefits for creditors
- The creditors can handle direct debits and e-bills in a single system.
- The creditors are notified electronically of new direct debit authorizations – as they are accustomed to with e-billing.
- Customer registrations for the e-bill contain as a new feature an identifier indicating whether a customer has already been set up for direct debits. This simplifies the correct configuration of the payment path of the creditors' customers.
- E-bills and direct debits can be delivered through a common standard and identical communication channels.