What's ISO direct debit?

An option that creates automatic receipts that debit a customer bank account according to the standards of ISO 20022 direct debit.

You must create a debit authorization agreement with your customers to set up automatic receipts for ISO direct debit.

ISO direct debit is for payment by bank transfer only. The ISO 20022 direct debit process doesn't use the Number of Receipts Rule, but instead creates and applies a receipt against customer open receivables and transfers funds from the customer bank account to the remittance bank account defined on the automatic receipt method.

In accordance with ISO 20022 standards, the Create Automatic Receipt process sends the customer a prenotification message five days in advance with the amount and date of the proposed direct debit. The prenotification message gives the customer time either to ensure the necessary funds are available or to reject the proposed debit.

Once the customer approves the payment, the Create Automatic Receipt process creates the batch of ISO 20022 direct debit receipts and submits the batch to Payments for processing. Payments manages the process of creating a settlement batch and generating an automatic receipt format, using either the ISO 20022 SEPA or CGI settlement format.