How does LSV+ work?
A debit authorization from the bill payer (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) at his financial institution or to SIX Interbank Clearing (via payCOMweb 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.
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 31 calendar days after notice of the debit to the account has been given. Such objections, however, arise rarely due to the close relationship of trust that generally exists between debtors and creditors.
Advantages of LSV+
- Optimized cash management through on-time and final receipt of funds (active control option for the incoming payment, same value-date credit, no returns for technical banking reasons).
- Practically no returns (approx. 0.5%).
- Cost savings through the use of standardized and established 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.
Would you like more information? Please contact your financial institution.
Software providers
LSV+ Guidelines for creditors
LSV collection order