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.

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.