This animated presentation illustrates, by clicking on the small picture to the left, the direct debit procedures. 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.

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 31 calendar 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.

Advantages

• Reduction of time, efforts and costs through the high degree of automation (STP) and through the minimizing of returns.

• Cost savings through the use of existing payment traffic infrastructure (SIC and/or euroSIC, payCOM^web, credit advising method).

• Cost-efficiency through the modular structure (delivery and authorization functionalities can be selected freely).

• Supplements the financial institutions' product range for individual and standing orders.

• Boosts market potential among customers who value optimized cash management.

• Improved customer retention through internal bank delivery channels (such as e-banking).

• Creates market opportunities through alternative delivery channels, also among customers who do not use online banking.

• Enhanced market acceptance in the private customer sector due to the exclusive procedure with right to object (LSV+).

• Flexibility in the business customer sector, in which direct debits are possible "with” (LSV+) or “without” (BDD) right of objection.

• Limitation of the beneficiary bank's liability risk through individual and flexible creditor limit issuing.

Target groups

• Real estate management
• Health insurance companies
• Energy suppliers (electricity, gas, water, oil)
• Credit card companies and companies with their own payment cards (such as bonus cards)
• Leasing firms
• Insurance companies
• Cable network operators
• Newspapers
• Radio / television network operators
• Travel agenciesPublishing houses
• Mail-order companies

Questions and answers about LSV+/BDD.

Would you like more information or a personal consultation? Call +41 44 279 48 00 or contact us using the online form.