Understanding CGI Direct Debits

For CGI direct debits, the debtor must authorize the creditor to initiate collection of payment from the debtor bank and also instruct the debtor bank to transfer the funds directly to the creditor bank. This authorization is based on an agreement between the debtor and the creditor and is referred to as a mandate. The mandate can be in paper or in electronic form and expires 36 months after the last initiated direct debit.

The scheme gives full discretion to debtors to accept or refuse a mandate.

The debtor can give authorization for recurrent direct debits or onetime single direct debit:

• Recurrent direct debits are those for which the authorization by the debtor is used for regular direct debits initiated by the creditor.

• Single direct debits are one-off direct debits for which the authorization is given once by the debtor to collect only one single direct debit. This authorization cannot be used for any subsequent transaction.

The JD Edwards EnterpriseOne system supports the format of collecting funds from accounts designated to accept collections. The debtor and the creditor must set up their bank accounts with the BIC (Bank Identifier Code) and IBAN (International Bank Account Number).

You use the SEPA Direct Debit Mandate program (P743002) to enter and store the data related to the mandate in the system. You must then use the Debit Standard application (P03B571) to generate the CGI Direct Debit report (R743008) to create the XML file for collecting the CGI direct debits.