LSV⁺/BDD – Efficient processing of direct debits

LSV⁺ and BDD are attractive direct debit procedures offered by the Swiss banks for the convenient handling of regularly occurring claims in francs and euro. They combine the best-possible consumer protection with efficient and secure processes, which minimize risks and costs for banks, debtors and creditors.

The legal basis for the direct debit procedures is formed by the participation conditions and debit authorizations. The participation conditions regulate the handling of instructions between the creditor and his/her bank. The debit authorization documents the legal relationship between the creditor, his/her financial institution and the debtor as well as that between the debtor and his/her bank. The debtor's bank is only permitted to pay the amount claimed if there is a valid debit authorization from the debtor.

The two procedures

LSV+ is the direct debit procedure with right of objection. 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 days after notice of the debit to the account has been given.

There is also a second option for the business customer sector, the Business Direct Debit (BDD). BDD does not permit any objection and is an appropriate procedure for business models conducted according to the delivery-versus-payment principle.