A Direct Debit Collection is a payment initiated by the creditor to withdraw funds directly from the debtor's bank account, based on a pre-authorized mandate. Instead of the debtor actively sending a payment, permission is granted (via a Mandate) for the creditor to collect the payments.

Mandate Authorization (Client Managed)

Collection-Initiator must provide a Direct Debit mandate which authorizes the debit of the debtor's bank account for agreed payments. Banking Circle does not offer capabilities for mandate creation, signing, and storage, and is not responsible for obtaining and managing the mandate in compliance with the applicable Direct Debit scheme rules and regulatory requirements.

Mandate management responsibilities reside with the creditor (merchant) as defined by the applicable scheme rulebook.

The following guidance outlines how mandate management can be integrated directly into the checkout or payment flow without reliance on external systems.

Mandate Data Requirements

A valid mandate must be created and stored with the following information:

Creditor (merchant) name and address
Creditor Identifier (CID)
Unique Mandate Reference
Customer name and IBAN
Payment type (one-off or recurring)
Customer consent (e.g., signature or digital confirmation), which may include:
- Checkbox or button confirmation (“click mandate”)
- Email confirmation
- Digital signature (e.g., signed PDF)

Mandate Creation Flow

The mandate creation process should follow these steps:

Collect customer details (e.g., name and IBAN)
Present the SEPA mandate text (in accordance with official scheme guidelines)
Capture customer consent (e.g., checkbox, digital confirmation, or signature)
Store the mandate securely for future reference
Reference the stored mandate (via mandateRelatedInformation.mandateId) when initiating Direct Debit collections

Collection Initiation

When a payment is due, a Direct Debit collection must be submitted via the Instruction Endpoint. This request must include the necessary details such as the mandate reference, the debtor's bank account information, and the payment amount.

Collection Status & Reconciliation

A range of reports and webhooks are available for collection status and reconciliation needs. The following properties can be used to reconcile the instruction and the booked account entry.

The End-To-End Id: Supplied in the Instruction Endpoint, by the instructing party, which will be present in the Remittance Information Line 1, in the incoming Credit Entry.
Account Servicer Reference / Reference Number: Reference created by Banking Circle, which is present as Account Servicer Reference in Customer Payment Status Report and Reference Number in the Reconciliation reports.

Reports	Purpose
Customer Payment Status Report	Provides a status of the instructed Collection, immediately after initiation.
Bank To Customer Statement	End-of-Day reconciliation for booked payments
Bank To Customer Account Report	Intraday reconciliation for booked payments
Account Activity Report & Reconciliation Report	Reconciliation for booked payments
Webhooks
Incoming Booked Payment	Notifies when the Collection's subsequent incoming payment is booked.
Incoming Processed Payment	Notifies when the Collection's subsequent incoming payment is processed.