Direct Debit Service Administration Memo for the Company 7 April 2014

Transcription

1 I. Definitions Direct Debit Service Administration Memo for the Company 7 April 2014 direct debit means a payment method for regular payments in consideration for provided services. Agreement means a direct debit agreement between the Bank and your company regarding direct debit service. mandate means a document, the payer s consent to pay to your company by direct debit method. The Payer s mandate is a multiple one. The mandate is issued once, and the service is provided until the payer refuses it. Service Beneficiary s number means the number indicated by the payer in the mandate, according to which your company will determine the service or client for which the payer has agreed to pay. What specifically must be indicated by the payer in the consent is established in an agreement between the bank and your company. payment order means a debit payment order provided by your company to the bank to debit funds to the payer s account and to credit them to your company s account. electronic data structure means the bank s established direct debit electronic data structure as described at the bank s website or at the company s request provided directly to the company at the bank. II. Outset 1 III. Direct debit payment process 1 IV. Recommendations for your Company 2 V. How to obtain information from the Bank and forward the information to the Bank 2 DIRECT DEBIT MANDATES 2 How to obtain information from the Bank on the mandates accepted by the Bank How to draft and forward to the Bank the information about the mandates rejected by your Company 4 How to draft and forward to the Bank the data of the mandates accepted at your Company 5 Actions after approval of the mandates file 7 DIRECT DEBIT PAYMENT ORDERS How to draft and forward to the Bank data of the payment orders 10 Actions after approving the orders file 13 VI. Contacts 15 II. Outset It is necessary to familiarise with an agreement between your company and SEB Bank (hereinafter the Bank ). The entire process of information exchange between the Bank and your company takes place via SEB Bank s Internet Service System website ( (hereinafter the IBS ). III. Direct debit payment process 1. Your Company on regular basis issues and provides to its customers invoices for the services provided. Each invoice must bear the service beneficiary s number, according to which payments will be made. 2. Upon receiving an invoice, customers (hereinafter the payers ) may pay against it in various ways convenient for them: in cash, by giving a payment order via the Internet, by payment from an account, via the Internet or by direct debit. For payment against invoices by direct debit on regular basis, it is sufficient for a payer to submit his/her/its mandate at the Bank or at the Company. 3. The Bank provides the collected payer s mandates in the form of a file to the IBS. The Company, having accepted the payers written mandates, may import them or log into the system manually. 4. Having received information from the Bank on the mandates accepted by the Bank, the Company shall check them and: a. if the Company finds that the mandate accepted by the Bank is incorrect, the Company must prepare a file of rejected mandates and send it over to the Bank. The Company rejects the mandate, if in such mandate the Payer has indicated a non-existing number of the Service Beneficiary or a second mandate of the Payer has been provided with the same Service Beneficiary s number; b. if the Company finds that the mandate accepted by the Bank is correct, it notes in its internal accounting documents that payment is effected by the Payer by direct debit. 5. Having received the mandates accepted by the Company, the Bank checks them and returns to the Company the reply file. 6. Having sent an invoice to its customer for payment, within a 5 business days period the Company has the right to debit the funds payable. Payment orders may be imported by the Company or manually log them into the IBS. 7. The Bank, having received the payment order from the Company before o clock, debits the funds and transfers them to the Company on the same business day. The payment order status executed /not executed is submitted in the form of the IBS file. The statuses are described in the description of electronic files structure provided by the Bank.

2 IV. Recommendations for your Company The Service Beneficiary s number must be reported to the customer in advance, otherwise the Payer will be unable to properly fill out the mandate. It is necessary to notify SEB Bank about the procedure in which the payment orders will be submitted (definite date (s) or frequency). We will provide this information to the customer who intends to sign the mandate. This will make it much easier for the Payer to decide whether the direct debit method is acceptable to him/her/it. Its desirable that the date of payment by direct debit would also be indicated to the customer in the invoice for the services. We recommend to clearly establish dates on which the Company submits the payment orders to the Bank. Having received the payment order from the Company, the Bank executes it only once. If there were no funds in the If there were no funds in the Payer s account, the Bank will make no more attempts to debit the funds. If you have received a reply from the Bank in that funds are insufficient, we recommend to submit the Bank a repeated payment order later. Therefore, we advise to submit the payment orders to the Bank twice a month or more frequently. If a customer s several-months debt has accumulated, in such a case we recommend to submit to the Bank separate payment orders, as the Payers may have established a limit for a single transfer amount. Before submitting the payment orders to the Bank, it is necessary to check whether the customers have or have not paid in any other way (in cash, by money transfer, payment transaction, etc.). If a customer has already paid in any other way, no payment order should be submitted to the Bank. V. How to obtain information from the Bank and forward the information to the Bank Information is sent and received via the IBS. Your Company should have an e-service agreement concluded with the Bank, and in the IBS the Company s user must be issued the right to use the direct debit services. Via said system, direct debit documents may be submitted by an unlimited number of employees what matters is that each of them should have the right to log into the system and the right to said service. The data of the mandates and orders may be provided in two ways: a) by manual log-in of the data of the mandates and the data of the payment orders into the system. The system will itself form the files required for the Bank; b) your internal accounting system may accumulate information on customers effecting payments by direct debit and automatically produce and accept the required electronic files. Later, the electronic files may be imported to / exported from the IBS. This way, manual work-load is significantly reduced.

3 DIRECT DEBIT MANDATES How to obtain information from the Bank on the mandates accepted by the Bank If the Bank does not collect your Company s direct debit mandates, you may omit this part. If the Bank has accepted the direct debit mandates for your Company, their data are provided on the following business day. Electronic file extension dsb. Log in to the IBS, select menu item Payments -> Management of direct debit -> Bank collected mandates and you will receive all the data from the Bank. The file received may be opened with Microsoft Wordpad, Word, Excel software. We do not recommend opening the file with Notepad software, as this software incorrectly reflects certain file data. In an e-file, the mandate data are arranged in a certain order, which is described in the description of the electronic data structure.

4 How to draft and forward to the Bank the information about the mandates rejected by your Company If the Bank does not collect your Company s direct debit mandates, you may omit this part. Having received the mandates accepted at the Bank, the Company must check them. If it finds any mandates that need to be rejected, it must: 1. in the mandates file received from the Bank delete the lines with correct mandates, 2. at each remaining entry indicate the reason for the rejection: a. in the status field, indicate B, if the reason of the reject was non-existence of such Service Beneficiary s number, b. in the status field, indicate K, if at your Company the customer with the indicated Service Beneficiary s number already has a valid mandate 3. replace the e-file extension dsb with erb. E. g., vbdsb dsb is replaced with vbdsb erb, 4. the file must be forwarded via the IBS to the Bank. This is quite simple select menu item Payments -> Administration of direct debit -> Mandates Import company s answer file. Having received the file, the Bank will terminate the rejected mandates. The Bank will get in touch with the Payer and inform that the Payer should repeatedly submit the mandate.

5 How to draft and forward to the Bank the data of the mandates accepted at your Company If you do not collect direct debit mandates from your customers, you may omit this part. If your Company has accepted the Payer s mandates to pay for the services provided, you must forward their data to the Bank no less than 2 business days before submission of the payment orders to the Bank. For this purpose, select the system column Payments -> Administration of direct debit -> Mandates. You may forward to the Bank the mandates collected by your Company in two ways: a) log in the information of the mandates manually. Select Payments -> Administration of direct debit -> Mandates and click on the icon Create mandate list the mandate date input window will open (see figure below):

6 Fill out the form in this window and click on the icon Save agreement. At the bottom, the mandate you have entered will appear:

7 If you click on the icon Confirm the list, the file approval window will open. When the file is approved, it will be forwarded for execution to the Bank. NOTE: you may also approve the file in the files list by clicking on the icon Confirm: b) draft an electronic file with the information on the mandates according to the data structure set in the Agreement (edata extension dse). A prepared file can be easily imported to the IBS select Payments -> Administration of direct debit-> Mandates and click on the icon Browse (see figure below): To view the imported file, click on the menu item Mandates the mandate files list will appear, and in it your file will be uploaded. NOTE: uploading of files with a large number of entries takes somewhat longer, therefore, such a file will not appear in the files list immediately. To approve the imported file, in the files list click on the approval icon: To approve several files at a time, select them on the left and click on the icon Confirm selected at the bottom.

8 Actions after approval of the mandates file Having received the mandate data, the Bank will check them and return to you the results, which you may receive in the following ways: a) download the.fro file from the IBS. You will find it under the menu item Payments -> Management of direct debit -> Report on company s mandates. Here you will find the direct debit mandates document, which you may open with Microsoft Wordpad, Word or Excel software. At each mandate you will find its checking result the column State indicates a letter, its meanings being explained in the description of the electronic data structure. b) You can also see the filled out column State in the file review window. Simply select menu item Payments -> Management of direct debit and in the files list click on the icon Review.

9

10 DIRECT DEBIT PAYMENT ORDERS How to draft and forward to the Bank data of the payment orders To forward to the Bank the data of the direct payment orders, select system column Payments -> Management of direct debit -> Payments.

11 There are two ways in which you may submit payment orders to the Bank: a) enter the information of the mandates manually. Select Payments -> Administration of direct debit -> Payments and click on the icon Enter payments the window of the form for entering the direct debit payment data will open (see figure below):

12 Fill out the mandate form in this window and click on the icon Save payment button. Below, the mandate you have entered will appear:

13 By clicking on the icon Confirm the list you will open the file approval window. After approval, the file will be forwarded for execution to the Bank. NOTE: you may also approve the file in the files list (Payments -> Administration of direct debit -> Payments) by clicking on the icon Confirm: b) draft an electronic file with the information of the mandates according to the data structure (e-file extension tdp). The file drafted can be easily imported to the IBS Select Payments -> Management of direct debit -> Payments and click on the icon Browse (see figure below). To view the imported file, click on the menu item Payments the list of payment order files will be opened which will also include the file you have loaded. NOTE: uploading of files with a large number of entries takes somewhat longer, therefore, such a file will not appear in the files list immediately. To approve the imported file, in the files list click on the icon Confirm: To approve several files at a time, select them on the left and click on the icon Confirm selected at the bottom.

14 Actions after approving the orders file Having received payment orders, the Bank will execute them and will return the results via the IBS to your Company. You may receive a response in the following ways: c) download the.fro file from the IBS. You will find it under menu item Payments -> Management of direct debit -> Reports on payments. Here you will find the direct debit orders file, in each line of which you will find its checking result in the column State you will see a letter, its meanings being explained in the description of the electronic data structure. In case of executed orders, the date of the payment order execution will also be indicated. the filled column State you may also find by selecting Payments -> Management of direct debit -> Payments by selecting the file and pressing the icon Review:

15 VI. Contacts Regarding the direct debit service process, the use of the IBS or any disorder in it please contact the Bank's Contact Centre by phone at: or (8 ~ 5) , or by at: info@seb.lt.