This animated presentation illustrates, by clicking on the small picture to the left, the direct debit procedure. It is part of SIX Interbank Clearing's interactive Guided Tour. Navigation tips. Macromedia Flash is required to view the Guided Tour. This software can be downloaded here for free.

How does BDD work?

A debit authorization from the debtor forms the basis for the collection of direct debits, along with a bank account for both parties. The payment recipient (creditor) submits the direct debit electronically through an interface (such as e-banking) to his/her financial institution or to SIX Interbank Clearing (via payCOM^web 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.

Advantages of BDD

• Optimized cash management through on-time and final receipt of funds (active control option for the incoming payment, same value-date credit, no returns).

• No returns.

• Cost savings through the use of standardized and establishing processes throughout the billing cycle.

• Cost savings through a very high degree of automation (significantly improved dunning process, no manual and paper-bound processes).

• Paperless handling reduces expenses (mailing out invoices and cash pay-in fees are eliminated, no pay-in infrastructure).

• Fewer subsequent costs because the requested amount is unalterable (easy recognition).

• Established dunning process can be used.

• Flexible submission either to the bank or to SIX Interbank Clearing Ltd.

• Clearly communicable product advantages for customers.

Would you like more information? Please contact your financial institution.