Direct debits are a fast and efficient way to collect your fixed and variable payments from your customers electronically.  Since the introduction of SEPA, direct debits can be used to for both once-off and recurring euro collections from bank accounts in Ireland and across the SEPA zone.

 

Direct debits can be used to collect funds from the debtor (payer) by the creditor (payee), provided the debtor has given a mandate to do so.  The payer gives instructions authorising your business to collect payments, and debits can be drawn only in accordance with the terms of this mandate.

 

By collecting direct debits you can manage your business’ cashflows more effectively and administer greater control over receipts by determining the exact date of collection. Utilisation of direct debits enables automatic notification of unpaids, and means you don’t have to wait for your customer to pay you or for a cheque to clear.


Click SEPA Direct Debit to see how the Timeline works.

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    Additional Features of the Direct Debit Scheme

    Businesses signing up for direct debits will need to become familiar with the SEPA direct debit rule book. Some of the key points are summarised below:
     

    • Collections must be identified as first time collections (FRST) or recurring collections (RCUR). Direct Debits can also be classified as once off (OOFF) or final collections (FNAL).


    • Every debtor must be assigned a Unique Mandate Reference (UMR) and this must be submitted with every collection from that debtor
       

    • Mandates are managed by the direct debit originator. The mandate default is in paper format, although in Ireland electronic and phone mandates are also allowed (cross-border collections must be supported by a paper mandate).


    • The SEPA Direct Debit Core Scheme grants debtors the right to a 'No Questions Asked' refund for up to 8 weeks after debit date. 
       

    Your dedicated Cash Management relationship manager will be happy to provide support on any queries you may have.

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    Signing Up

    1. Mandate - within SEPA, there is a specific Direct Debit mandate format which your debtors must sign. Samples are available from AIB and, prior to implementation, the mandate format being used must be approved by AIB.  

    2. Application Forms - direct debit originators are required to sign a SEPA direct debit creditor agreement with AIB in order to join the scheme, and a Payment Files application form to get this functionality added on iBB.

    3. File Formats - AIB will provide you with the XML File Specification and you will need to engage with your software provider to develop a sample direct debit file.  AIB’s technical support team will work with you and your provider throughout this project, testing sample files once available and agreeing a ‘go-live’ date with you.

    4. Going Live - prior to going live AIB will issue you with an OIN (Originator Identification Number) which identifies you within the scheme.  Files are uploaded and authorised via iBB, and you will be provided with training and assistance in uploading your initial files.

    5. Reconciliations - unpaid items, rejects, returns and refunds are all provided to you by way of PAIN.002 XML files within iBB.  These files will detail the reason for the returned item under individual reason codes to assist you in reconciling your accounts.  AIB will provide you with a detailed reconciliation guide and will assist with any queries on the reconciliation process.

    6. Ongoing Support - our experienced client services team provides technical and hands on support to Cash Management customers using AIB’s bulk payment and direct debit file services.

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Please find details of AIB's standard Business Fees and Charges here


Talk To Us

For further information please contact our Cash Management team at cash.management@aib.ie or call us directly at +353 (0)1 6417311.

Related Products

Payment Files

A service that allows you to upload both domestic and international payments within a single file.


Direct File Submission

Service available to businesses that wish to submit large payment files directly to AIB.

 

Allied Irish Banks, p.l.c. is regulated by the Central Bank of Ireland

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