November 2016
Euro Direct Debit Manual
Payment collection by
Euro Direct Debit
Een aandeel in elkaar
Content
Chapter 1: Introduction
Chapter 5: Collecting payments
5.1General
Chapter 2: The Euro Direct Debit
5.2 Creating direct debit orders
2.1General
5.3 Collecting payments using your accounting package
2.2 International direct debits
5.4 Collecting payments using Rabo Internet Banking
2.3 The Euro Direct Debit contract
2.4 Your Collector ID
5.5 Creating individual direct debits in Rabo Cash
2.5 Contract limits
Management
2.6 The Euro Direct Debit and Business Euro Direct Debit
5.6 Checking direct debits
2.7 General Terms and Conditions for (Business) Euro
5.7 Cancelling Euro Direct Debits
5.8 Execution date
Direct Debits
without any software
5.9 Your account information
Chapter 3: Mandates
5.10Failed direct debits
3.1General
5.11Resubmitting a failed direct debit
3.2 Electronic Direct Debit mandates
3.3 Standard paper mandate forms or own design
Chapter 6: Direct debit software
3.4 Points of concern related to mandate forms
6.1General
3.5 Mandate identifier
6.2 Software requirements
3.6 Validation reference
3.7 Entering and managing mandates
Chapter 7: Annexes
3.8 Inform your debtors
Useful websites
Abbreviations and English terms
Chapter 4: Changes in mandate details
4.1 Changes to your details
4.2 Changes to your debtor’s details
Manual for Business Euro Direct Debits: Payment collection by Business Euro Direct Debit
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Chapter 1: Introduction
The Euro Direct Debit enables you to collect payments from a customer or member’s bank account in the
Netherlands and other European SEPA countries. This manual contains the information you need to efficiently
collect payments in accordance with the rules.
You need to arrange a direct debit contract in order to be able to use the Euro Direct Debit. There is a separate
contract for collecting business payments: the Business Euro Direct Debit You can find more information and a
separate manual on www.rabobank.nl.
Rabobank offers you the option of creating and managing direct debits directly in Rabo Internet Banking
without any separate software. You can also use a direct debit function in your accounting package. You
subsequently import your direct debit files to Rabo Internet Banking (Professional) or Rabo Cash Management
(part of Rabo Corporate Connect).
Also refer to the information on www.rabobank.nl/euroincasso.
Manual for Business Euro Direct Debits: Payment collection by Business Euro Direct Debit
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Chapter 2: The Euro Direct Debit
2.1General
rules in this manual and in the General Terms and Conditions
2.2 International direct debits
on our website.
2.3 The Euro Direct Debit contract
2.4 Your Collector ID
Chamber of Commerce Registration
2.5 Contract limits
Your organisation must be registered in the Chamber of
2.6 The Euro Direct Debit and Business Euro Direct Debit
Commerce’s Business Register in order to conclude a Euro
2.7 General Terms and Conditions for (Business) Euro
Direct Debit contract with Rabobank. Other rules may apply
to churches, public-law institutions or foreign companies. Your
Direct Debits
Rabobank contact can provide you with more information
2.1 General
about this matter. You will find all the information about registering in the Business Register on www.kvk.nl.
You can use the Euro Direct debit to collect payments from
your debtors’ bank accounts in the Netherlands and other
European SEPA countries. SEPA is the abbreviation for ‘Single
2.4 Your Collector ID
Euro Payments Area’: a single European payment market with
The Euro Direct Debit contract specifies your Collector ID. You
no differences between domestic and foreign payments.
receive your Collector ID from the bank where you first sign
a direct debit contract. You receive a one-off certificate that
2.2 International direct debits
You can use the Euro Direct Debit to collect payments in
all eurozone countries. Since 31 October 2016, this is also
possible in all SEPA countries with currencies other than the
euro. Your debtor in a SEPA country can enquire at his or her
bank whether Euro Direct Debits are possible.
specifies your Collector ID. In the Netherlands the Collector ID
consists of 19 characters. The Collector ID is used to identify
your organisation throughout the SEPA area.
2.5 Contract limits
Two contract limits apply to the Euro Direct Debit contract.
You can submit your direct debit orders for processing up to
Other currencies
these limits.
If the debtor’s bank can process Euro Direct Debits, you can
collect payments in euro from a bank account (IBAN) held
in a different currency. For example, if your debtor has an
account in Pounds Sterling the debtor’s bank exchanges the
currency. This could involve additional costs for the debtor.
The exchange rate risk applies to you, the creditor, if the direct
debit is reversed.
2.3 The Euro Direct Debit contract
1. Maximum amount per item
This is the maximum permitted amount of an individual
Euro Direct Debit. If you submit a direct debit for a higher
amount the bank will reject it. If the maximum amount is
too low for you, please discuss it with your bank.
2. Period limit
This is the maximum permitted total amount of Euro Direct
If you want to use the Euro Direct Debit you need to arrange a
Debit orders you may submit during a certain period of
Rabobank Euro Direct Debit contract. On signing the contract
time (in weeks). If you submit more direct debits than
you declare that you will comply with the rules imposed on
permitted during your period limit there is a risk that they
you, the creditor, by law and by Rabobank. You can find these
will be executed later or perhaps not at all.
Manual for Business Euro Direct Debits: Payment collection by Business Euro Direct Debit
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Verification date and exceeding limits
When a batch of Euro Direct Debits is processed, the total
amount already processed during the previous period is
verified. The verification date is the desired execution date
(and therefore not the submission date). Any batches that
exceed the period limit will be held back by the bank. The
bank will subsequently decide whether each batch will
be executed or rejected. If the maximum item amount is
exceeded the order will also be immediately reversed after the
total batch amount has been credited.
2.6 The Euro Direct Debit and Business
Euro Direct Debit
You can also collect payments at Rabobank with the Business
Euro Direct Debit as well as the Euro Direct Debit. This applies
exclusively from one company to another. Another difference
is that with the Euro Direct Debit the consumer has the right
to reverse the amount of a one-off or recurrent direct debit,
within eight weeks. This right does not apply to the Business
Euro Direct Debit. Read more about the Business Euro Direct
Debit on www.rabobank.nl.
Example
Your period limit is € 1,000 per week. Today you send a batch
of direct debits amounting to € 1,000 with the desired execution date of 31 August. Tomorrow you do exactly the same
applying an execution date of 1 September. The second batch
will be held back because your period limit has already been
reached. The bank examines whether your limit has been
already used during the previous period (one week) from the
execution date - in this case 1 September. The bank decides
whether or not the second batch will be processed within
three working days of you submitting it.
2.7 General Terms and Conditions for
(Business) Euro Direct Debits
The Rabobank General Terms and Conditions for (Business)
Euro Direct Debits and Supplementary Terms and Conditions
of Rabo Electronic Direct Debit mandates apply to all information provided in this manual. These take precedence in the
event of any contradictions between the General Terms and
Conditions and the manual, and are available on
www.rabobank.nl/euroincasso.
Your contract limits and multiple accounts
You can include multiple accounts in your direct debit
contract. The contract limits apply to all accounts included in
the contract.
Modifying your contract
Do you want to submit more direct debits than is permitted
by your existing contract limits? You can ask for your contract
limits to be increased via www.rabobank.nl/euroincasso.
A minor modification may already be implemented the following working day.
Manual for Business Euro Direct Debits: Payment collection by Business Euro Direct Debit
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Chapter 3: Mandates
3.1General
Mandate Service Provider (MSP), you can start using Electronic
3.2 Electronic Direct Debit mandates
Direct Debit mandates sooner. This means you will largely use
3.3 Standard paper mandate forms or own design
the MSP connection and have a lot less to organise yourself.
3.4 Points of concern related to the mandate form
3.5 Mandate identifier
Facturis is a Mandate Service Provider and is officially part of
3.6 Validation reference
Rabobank. Read more about their services and rates on
3.7 Entering and managing mandates
www.rabobank.nl/facturis.
3.8 Informing your debtors
You can read all about the rates and conditions that apply to
3.1 General
Electronic Direct Debit mandates on www.rabobank.nl/dim.
In order to be able to use the Euro Direct Debit, your debtor
3.3 Standard paper mandate form
or own design
must authorise you by signing a mandate form that satisfies
legal requirements. It is possible for someone from whom
you have collected payments to allege that he or she has not
If you cannot or do not want to use Electronic Direct Debit
issued you with a mandate. If this is the case you must be able
mandates, there are also standard green mandate forms you
to present a copy of the signed form.
can print or order from a professional printer. You can also use
this model for your own design.
3.2 Electronic Direct Debit mandates
With Electronic Direct Debit mandates you receive valid,
Please note! You are obliged to retain all the fields
online direct debit mandates from your customers. Your
included on the sample mandate form, literally use
customer agrees remotely to the mandate that you have
them in your own design. Therefore you may not
configured in advance. He or she does this via his/her own
omit any text! However, you can include additional
secure Internet Banking environment. This provides you with
information on your form. Examples include a contract
the certainty that you can collect payments.
number or the reason for the payment. Additional
Here are several advantages of electronic direct debits:
information is permitted as long as you do not
contradict the mandate text in the model.
• Efficient and reliable solution for paper mandates
• More successful direct debits
• More convenient for your customers
You may also include the mandate text in a contract, but only
if you get the mandate text signed separately in the contract.
Do-it-yourself or use a service provider
This text must be easy for the debtor to recognise
For your customers to issue you with an electronic mandate
as a mandate.
your website needs to be modified or you could use an
e-mail with a mandate link. If you include the Electronic
The mandate model is available in four languages on
Direct Debit mandate logo your customers will be able to
www.rabobank.nl. If you need a mandate
recognise it. Introducing Electronic Direct Debit mandates in
text in a language other than Dutch, English, French or
your operational processes yourself takes several weeks and
German, please visit www.europeanpaymentscouncil.eu.
requires extensive technical knowledge. If you opt to join via a
Manual for Business Euro Direct Debits: Payment collection by Business Euro Direct Debit
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3.4 Points of concern related to the
mandate form
Bank Identification Code (BIC)
The ‘BIC’ field on the mandate form only needs to be
completed for customers with a foreign bank account
number. An accounting package may well require you to
enter a BIC. If so, you can enter the BIC ‘RABONL2U’. Rabobank
automatically enters the correct BIC.
A single mandate for several purposes
You can use a single mandate for direct debits for multiple
Report’ within this time frame the bank can ask you to present
a copy or scan of the mandate. If you do not, the direct debit
is reversed.
In the case of an Electronic Direct Debit mandate, it is important that you retain the ISO PAIN.012 message (the format in
which you receive the mandate details) as well as the electronic signature (including the certificate information). The
retention period is at least thirteen months after the last direct
debit has taken place. If you do not, the direct debit may be
reversed.
purposes. The Euro Direct Debit does not require you to
specify a reason for the debit on the mandate itself. Therefore
TIP
you can use a single mandate (and the same mandate iden-
You may leave the ‘mandate identifier’ field on the
tifier) for several purposes related to the same person. The
paper mandate empty when your member or customer
Rabobank will advise you to specify a reason for the debit so
signs it. You must later enter the identifier when
that it is clear to the debtor.
entering the mandate in your debtor records in Rabo
Internet Banking. You must subsequently communicate
Reason for the debit
the identifier to your debtor before the first direct debit.
Before you collect payment you must always clearly communicate the precise reason for a specific debit to your debtor, such
as via an invoice or e-mail in which you announce the debit.
Limited period of validity
If you have not collected any payments with the same
TIP
For more information about the correct use of the
mandate form visit our website.
mandate identifier during a period of twenty consecutive
months, you can no longer use the mandate and must ask
your customer to sign a new one.
3.5 Mandate identifier
Each mandate must be allocated a unique identifier for Euro
Storing authorisations
Direct Debits.
A scanned and electronically archived mandate form is considered a legal mandate in the Netherlands. When account
Unique mandate identifier
holders with a foreign bank authorise mandates, it cannot
The mandate identifier in combination with your Collector ID
be guaranteed that a scanned mandate will be accepted as
forms a unique mandate identifier. The mandate identifier:
a legal mandate. You are obliged to retain the original direct
• Is the unique identifier allocated to a single mandate
debit mandate for at least thirteen months following the last
direct debit order. Following an ‘Unauthorised Direct Debit
authorised by your member or customer;
• Is compulsory;
Manual for Business Euro Direct Debits: Payment collection by Business Euro Direct Debit
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• Is compiled by you;
account on behalf of someone else, ensure you enter the
• Can consist of a maximum of 35 numbers and/or letters;
details of the actual debtor. The next chapter provides more
• Is entered in your debtor records;
information about changes to the mandate details.
• May not be used for multiple debtors;
• May not be altered after being used.
Entering new debtors in the Rabo Internet Banking
direct debit address book
Description versus mandate identifier
Enter the details you have to include in the address book
Although in principle, the mandate identifier never changes for
that appear on the signed mandate.
the same debtor, the description may vary for each direct debit.
• Choose ‘ address book’;
• Add addresses using the ‘add address’ button;
For example, as his/her direct debit description a debtor sees:
• Enter all the information on the page;
• Mandate identifier: debtor123
• Click ‘add’ to save the address.
• Description: delivery 15 December
3.8 Inform your debtors
3.6 Validation reference
Europe strives to protect consumers against unwanted collec-
The validation reference is only relevant if you use Electronic
tions. Therefore conditions apply to the way in which you
Direct Debit mandates and create direct debit orders in an
must inform your debtors about direct debits in advance.
accounting package.
Before collecting a payment you must inform your debtor of:
As part of the Electronic Direct Debit mandate you receive
• Your Collector ID;
a validation reference in the mandate message (PAIN.012).
• The mandate identifier you have allocated the debtor;
This is a file format in which you receive the actual mandate
• The actual amount that will be debited and when.
details. In the event of a dispute, this reference is used by
the debtor’s bank to verify whether an electronic mandate
You are free to decide how to communicate this information
exists. In principle, if one is found no Unauthorised Direct
as long as it is addressed personally to the debtor and one can
Debit Report is made and you do not need to prove that you
assume that it will actually reach the debtor. Simply mentio-
possess a valid mandate. You must add this reference to the
ning the information on your website does not suffice.
automatic direct debit in the ‘Electronic Signature’ field, see
You must specify how far in advance you will inform him or her
www.rabobank.nl/seb.
about upcoming direct debits in your conditions in a contract
with your customer, or indicate it on the mandate form. If you
3.7 Entering and managing mandates
do not, a statutory period of fourteen (14) days applies.
When you receive a signed mandate from a client, enter the
Informing the debtor once only or multiple times
details in your debtor records. You must at least (electroni-
Before you send a direct debit to be processed, you must also
cally) document the mandatory details: Name, IBAN, date the
inform the debtor about the amount and date of the direct
mandate was signed and the mandate identifier.
debit. You can do so in advance, upon signature of the mandate:
“You will be debited the amount of €25 around the 30th of every
If the mandate changes, enter the date the change applies
month.” In the case of varying amounts you must inform the
and the underlying reason. If a direct debit is made from the
debtor in advance of the amount that will be debited.
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Too many refunds?
If Rabobank finds that refunds are frequently performed at
your debtors’ request, we may ask you to prove that you
possess valid mandates and that you inform your debtors
about upcoming direct debits in accordance with the rules. So
make sure you can demonstrate your procedures.
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Chapter 4: Changes to the mandate
4.1 Changes to your details
tainly applies to foreign debtors. A notification sent to your
4.2 Changes to your debtor’s details
debtors may also suffice, but this does not completely rule
out the risk of an Unauthorised Direct Debit Report.
An existing mandate may change as a result of changes to
• If you send a notification you must offer your debtors the
your details or those of your client. In some cases you must
opportunity of objecting to the change(s) and afford him
then take action.
or her adequate time to do so. Retain the notification and
make sure you can prove you sent it.
4.1 Changes to your details
New account number: no effect on mandates
4.2 Changes to your debtor’s details
The creditor’s account number is not included in the direct
Change of account number to a different bank using the
debit mandate’s details. Therefore if it changes this has no
Switch-over Service
effect. Even if you change bank, as long as your Collector
If you change banks in the Netherlands it is likely you will use
ID remains the same. You only have to change the account
the ‘Switch-over Service’.
number in your records.
In this situation:
Action is required in the case of the following changes:
• A direct debit order linked to the debtor’s ‘old’ account, is
automatically transferred to the new account;
• A new Collector ID;
• You receive a letter specifying the new account details;
• A different creditor name;
• Keep this letter in your records with the debtor’s mandate;
• A new mandate identifier.
• Update the account number in your debtor records;
New Collector ID or new (creditor) name
Change of account number to a different bank without
Your Collector ID or name may change, for example, as the
using the Switch-over Service
result of a merger. We recommend that you only change your
In this situation:
Collector ID if there is no other option. You do not need to
• You receive a letter or an e-mail from your debtor with the
change your Collector ID if your Chamber of Commerce regis-
new account details. You can only accept this change if it
tration number changes. You can obtain more information on
has been legally signed. If this is not the case a new mandate
this matter from your Rabobank branch.
must be signed;
• Keep this information in your records with the debtor’s mandate;
New mandate identifier
• Update the account number in your debtor records.
Sometimes you have to change the mandate identifier for
existing mandates, due to a merger or use of new debtor records.
New account number (same bank)
You may learn that your client has a new bank account
What do you have to do with regard to the above changes?
number in a letter or e-mail directly from your client. You can
only accept this change if it has been legally signed. You must
• You need a new direct debit contract if your name or
Collector ID changes.
keep this proof with the mandate. If there is no legal signature
a new mandate must be signed.
• Preferably get your client to sign a new mandate. This cer-
Manual for Business Euro Direct Debits: Payment collection by Business Euro Direct Debit
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Change of account number via the Rabo Electronic Direct
Debit Mandates Dashboard
In this situation the client makes the change on your website.
Consult the Rabo Electronic Direct Debit mandates manual to
find out how to offer clients the possibility of changing electronic mandates on your website. Read above to find out how
to submit the first direct debit after changes have been made;
this depends on whether the debtor changes banks or not.
Follow the steps below after a change to the (electronic)
mandate:
• Retain the amended (electronic) mandate with the
original mandate;
• Change the account number in your records.
Manual for Business Euro Direct Debits: Payment collection by Business Euro Direct Debit
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Chapter 5: Collecting payment
5.1General
5.2 Creating direct debit orders
5.3 Collecting payments using your accounting package
5.4 Collecting payments with Rabo Internet Banking without any software
5.5 Creating individual direct debits in Rabo Cash Management
5.6 Checking direct debits
5.7 Cancelling Euro Direct Debits
5.8 Execution date
5.9 Your account information
5.10Failed direct debits
5.11Resubmitting a failed direct debit
5.3 Collecting payments using your
accounting package
In Rabo Internet Banking select:
> Payments and Savings - Euro Direct Debit - Import.
In Rabo Cash Management select:
> Payments and collections - Import - Import batches
When sending your banking orders your accounting package
divides the direct debit orders into several batches in accordance with the different types of mandates. They are then
divided into different execution dates. You can upload the
batches in Rabo Internet Banking or in Rabo Cash Manage-
5.1 General
ment. Once uploaded the batches can no longer be changed.
You are ready to collect payments when you have a contract
make your changes in the accounting package.
If you want to make changes, you must cancel the batch and
and obtained signed mandates and have properly informed
your debtors about when you will collect payments and the
respected amounts.
5.2 Creating direct debit orders
TIP
If you create direct debit orders in your accounting
package, you can immediately book the outstanding
items as paid. You can assume that the direct debit
The type of mandate indicates whether it relates to a recurrent
is processed unless you receive a rejection. If this
or one-off direct debit.
is the case, book the item as open again. The most
efficient procedure is if your accounting package can
The types of mandates are:
automatically process rejections.
1. Recurrent
You use this type for recurrent direct debits, when you
collect payments more often using the same mandate
identifier.
2. One-off
5.4 Collecting payments with Rabo Internet
Banking without any software
You use this type when your debtor has signed a one-off
You can create direct debit orders in Rabo Internet Banking
mandate. You can only use the mandate identifier of a
without separate direct debit software or an accounting
one-off direct debit once.
package. You can enter individual direct debit orders or use
the direct debit address book, in which you can create simple
If you create direct debit orders in an accounting package you
debtor records and repeated direct debit files.
can also use the ‘first’ and ‘last’ types for recurrent direct debits,
but this is not compulsory. You are recommended to remove
Click Professional Internet Banking Support under ‘Create
these types from your accounting package at your convenience.
direct debit orders’ for an explanation. Here you will find a
Manual for Business Euro Direct Debits: Payment collection by Business Euro Direct Debit
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demo on creating a direct debit order, a demo about working
the following working day, unless you entered a later execution
with the direct debit address book and a leaflet that explains
date. If the desired execution date is not possible (if it is a Bank
the steps involved.
Holiday for example) Rabobank will automatically change the
date to the next date on which the orders can be executed.
5.5 Creating individual direct debit orders
in Rabo Cash Management
You can submit your Euro Direct Debits to Rabobank
maximum one year before the desired execution date.
You can create individual orders for Euro Direct Debits in Rabo
Cash Management. Also carefully complete the other details
Days on which Euro Direct Debits cannot be processed are:
such as the mandate identifier and the signature date to avoid
• New Year’s Day (1 January)
rejections.
• Good Friday
• Easter Monday
5.6 Checking direct debits
Check the prepared direct debits:
• Are the amounts correct?
• Have you entered the type as one-off or recurrent?
• Does ‘one-off’ only appear for debtors from whom you
do not want to collect payments more often?
• Are the allocated mandate identifiers unique for each
direct debit/debtor?
• Is the direct debit based on an electronic direct debit
• Labour Day (1 May)
• Christmas and Boxing day (25 and 26 December)
5.9 Your account information
Euro Direct Debits are credited to your account as a total batch
amount. In the description line accompanying the credited
amount you will find the original number of items and the
‘batch identifier’ you used when submitting the batch. If any
Euro Direct Debits are rejected (before the processing date) or
mandate? If so, has the validation reference been entered?
reversed (after the processing date) you will see these orders as
(Only if an accounting package is used)
individual debits in your account statement. In the description
line for the debit the ‘mandate identifier’ and the unique ‘transac-
If everything is correct you can send the direct debits.
tion identifier’ you used when submitting the order, is displayed
5.7 Cancelling Euro Direct Debits
You can find the description of a batch of Euro Direct Debit
orders in your account statement as follows:
You can only cancel Business Euro Direct Debits if you can
see the ‘Open’ status in the ‘Sent Euro batches’ screen in Rabo
1st line
Internet Banking.
2nd line Internet Banking*
In Rabo Cash Management you can contact your Rabobank
3rd line ‘Batch identifier:’
branch to cancel the batch up to two working days before the
4th line PaymentRefenceID (2.1 index from the
execution date.
(Business) Euro Direct Debit
implementation guideline of the PAIN.008.001.02)
5th line ‘Number of items:’
5.8 Execution date
Direct debit batches received by the bank at 7 a.m. latest and
correctly submitted by you are credited to your bank account
6th line NumberOfCollections (2.4 index from the
*
implementation guideline of the PAIN.008.001.02)
Or RCM (Rabo Cash Management) or Equens; depending on the electronic
submission channel you use.
Manual for Business Euro Direct Debits: Payment collection by Business Euro Direct Debit
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You can find a refund of a Euro Direct Debit order mentioning
Please note!
the IBAN of the original payment collected in your account
On the Rabo Cash Management pages you see the
statement as follows:
failed direct debits bundled in one total amount.
Download the account information to your accounting
package to consult the individual items.
1 st line IBAN and name original debtor
2st line
<description of type of refund>*
3nd line ISO-ReasonCode ** + description of reason (in Dutch)
4rd line ‘: ‘Transaction identifier:’
5th line Index 2.31 ++++ End To End Identification ***
6th line ‘Mandate identifier’ :
7th line Index 2.48 +++++ Mandate Identification ***
You can process your financial and debtor records using the
transaction identifier and/or mandate identifier and/or IBAN
related to the debtor.
PAIN.002 for quick information about rejections
PAIN.002 is a file format for account information, which means
you don’t have to wait until the credit entry of the batch of
direct debits to know which payments were rejected before
the transfer. By requesting a PAIN.002 file you can immediately
see the rejections once you have submitted the direct debits.
You can request PAIN.002 information as often as you want
to consult the latest rejections and take direct action. Your
direct debit software must be suitable for this action; ask your
supplier whether you are able to use PAIN.002. For technical
information also visit www.rabobank.nl/seb.
5.10 Failed direct debits
Refunds
Refunds may be debited from your account up to maximum
eight weeks after being credited. These refunds are displayed
as individual debits with the correct value date on your bank
statement along with the reason for the refund.
Your direct debit orders may fail in the following situations:
At the debtor’s request
In the case of a one-off or recurrent direct debit your
debtor can:
• Refuse the debit;
• Reverse or have the payment reversed within eight weeks
of the direct debit;
• Refuse the debit because it would exceed the maximum
limit the debtor has configured at the bank for this debit;
• Refuse the debit because you have collected payments
more often than he or she has configured.
• Block his or her account completely for debits accompanied
by your Collector ID or specifically for the mandate identifier
you use to collect payment. To do so the debtor can use the
Blocked List or Approved List.
There are different reasons why direct debits may fail. The
Insufficient funds or debit blocked by the bank
reason for the failure will determine whether and how you
The debtor’s bank has five working days to reverse a debit due
can resubmit the failed direct debit. Consult your account
to insufficient funds or because a block is in place. Banks treat
information to see which items were not carried out.
direct debits differently when there are insufficient funds. ING
refunds a direct debit two working days after the payment if in
Failed direct debits are visible immediately with
the meantime, the account holder has not added funds to the
the credit entry
account. ABN AMRO and Rabobank do so after four working days.
Failed direct debit orders that are known at the time of the
credit entry are displayed as individual debits the day the
batch is credited, along with the reason why it was rejected.
*
**
***
(refund by bank or client)
The list with ISO reason codes can be found on www.rabobank.nl/foutmeldingen.
An ISO reason code has four positions (such as: MS03 administrative reason)
As indicated by you in the original PAIN message
Manual for Business Euro Direct Debits: Payment collection by Business Euro Direct Debit
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As a result of an unauthorised transaction (Unauthorised
Technical reasons
Direct Debit Report)
The direct debit is rejected before being processed, for tech-
The debtor can inform his/her bank that he/she did not
nical reasons, such as an expired account number. You see this
authorise the transaction, and therefore request a refund, up
rejected direct debit as an individual debit on the day that the
to and including thirteen months after a Euro Direct Debit
batch of direct debits is credited.
is processed. The debtor’s bank sends the refund request to
Rabobank, after which we inform you. If you accept the refund
Please note!
request, you can order Rabobank within seven working days
Bank charges are applied to refunds. So follow
to debit the amount of the original Euro Direct Debit transac-
the instructions in this manual carefully to avoid
tion from your bank account. The debtor’s bank subsequently
unnecessary refunds.
executes the refund.
If you do not agree with the reversal, send a copy of the
mandate and any other information to your Rabobank branch
within seven working days. Rabobank will send the copy of
the mandate to your debtor’s bank. The bank subsequently
decides whether the direct debit should have been executed.
If your debtor’s bank considers that the refund is justified,
it will debit the amount of the original direct debit at the
original interest date from your account.
Unauthorised Direct Debit Report related to Electronic
Direct Debit mandates
In the case of Electronic Direct Debit mandates the debtor can
also inform his bank that he/she did not authorise the transaction and therefore request a refund, up to and including
thirteen months after a Euro Direct Debit transaction has been
processed. Upon receipt of the request the debtor’s bank
will invariably first check whether an Electronic Direct Debit
mandate has been authorised. To do so the bank uses the validation reference you assigned to the direct debit transaction.
5.11 Resubmitting a failed direct debit
The reason for the failed direct debit is described by a
code on your account statement. View www.rabobank.nl/
foutmeldingen for an updated list with explanations for the
error codes.
Sometimes you can resubmit a failed direct debit and sometimes you need to ask your debtor to pay in a different way.
If a direct debit is declined or refunded by the debtor please
always contact the debtor to find out why.
In the case of a failed one-off direct debit please contact your
debtor to arrange a different payment method. If you still
want to submit a direct debit use a new mandate identifier in
the new ‘one-off’ direct debit and communicate the mandate
identifier to your debtor before debiting the amount.
If the evidence is not sufficiently conclusive, you will be asked
to provide information. You provide the ISO PAIN.012 message
(the actual electronic mandate). If changes have been made
to the mandate not carried out via an Electronic Direct Debit
mandate, additional information related to the changes must
also be provided.
Manual for Business Euro Direct Debits: Payment collection by Business Euro Direct Debit
15
Chapter 6: Direct debit software
6.1 General
6.2 Software requirements
TIP: End-to-end ID
Use the end-to-end ID to assign a unique identifier to
6.1 General
a single direct debit order, which can also be tracked
any time during the process. This is particularly useful
The file format for the submission of Euro Direct Debits is
in the reconciliation (feedback of processing informa-
PAIN XML. The Euro Direct Debit makes it compulsory for
tion). The end-to-end ID is also communicated to your
you to document specific data in your debtor records. For a
debtor. The difference with the mandate identifier is
limited number of direct debits you can also collect payments
that the latter is not unique per order but per debtor
without software via Rabo Internet Banking or Rabo Cash
and mandate.
Management.
6.2 Software requirements
Please note that your direct debit software must satisfy at least
the following requirements:
• It supports the PAIN.008.001.02 file format (in accordance
with the ISO 20022 standard);
• It uses the euro as currency;
• Mandatory fields such as IBAN, unique mandate identifier
and signature date can be entered;
• The execution date is a maximum of one year after the
submission date;
• The file names are unique;
• A Euro Direct Debit file consists of one or multiple batches;
• Each batch contains only Euro Direct Debit orders;
- Of the same type (recurrent or one-off );
- With the same desired execution date;
- Intended for the same creditor account.
Errors in a batch
If a submitted batch contains errors, the incorrect direct debit
orders will be rejected. If there are too many errors an entire
batch is rejected because the file’s integrity will be questioned.
It concerns technically unavoidable errors. If this happens,
please contact your software provider.
Costs related to feedback concerning incorrect direct
debit orders
Charges are applied for feedback concerning rejected items.
Avoid these costs accumulating and first test your software’s
performance to ensure it is optimal. For more information
about the exact use of the PAIN.008.001.02 file format visit
www.rabobank.nl/seb. Here you will find the user rules from
the Implementation Guideline.
Euro Direct Debits that do not satisfy the above criteria will
be rejected. The maximum number of items depends on the
electronic submission channel you use.
Manual for Business Euro Direct Debits: Payment collection by Business Euro Direct Debit
16
Chapter 7: Annexes
Useful websites
Abbreviations and English terms
www.rabobank.nl/dim
BIC
Bank Identification Code
More information about Electronic Direct Debit mandates
www.rabobank.nl/tarieven
More information about the costs of your business payment
transactions
www.rabobank.nl/euroincasso
More information about the Euro Direct Debit and Rabo Electronic Direct Debit mandates
www.rabobank.nl/bedrijveneuroincasso
More information about the Business Euro Direct Debit
EPC
European Payments Council
File
File
Final
Last in a sequence of recurrent direct debit orders
First
First in a sequence of recurrent direct debit orders
IBAN
International Bank Account Number
ISO
International Organisation for Standardisation
More information about the Euro Payment
ISO 20022 XML standard
Standard for the file formats for exchanging payments, as defined by ISO in
2009
www.rabobank.nl/foutmeldingen
UDDR
Unauthorised Direct Debit Report
www.rabobank.nl/eurobetaling
Information about error codes related to direct debits
MT940
File format for reporting in your account
www.rabobank.nl/machtiging
One-off
One-off direct debit
More information about the mandate for a Euro Direct Debit
www.rabobank.nl/seb
Specifications of the import and export formats for Rabo
Internet Banking and Rabo Cash Management
Recurrent
Second and subsequent orders in a sequence of recurrent direct debit orders
debited from your debtor’s account
Reason Code
Reason why a direct debit order cannot be carried out.
R message
A separate item that is reported on your account statement with the reason
why a direct debit order cannot be executed
SEPA
Single Euro Payments Area
SEPA Business to Business Direct Debit
Business Euro Direct Debit
SEPA Core Direct Debit
General Euro Direct Debit
SEPA Direct Debit (SDD)
Euro Direct Debit
Manual for Business Euro Direct Debits: Payment collection by Business Euro Direct Debit
17
Rabobank General Terms and Conditions
Manual for Business Euro Direct Debits
Click for Rabobank General Terms and Conditions for
Click for Manual Euro Direct Debits: Payment collection by
(Business) Euro Direct Debits
Business Euro Direct Debit
www.rabobank.nl