Direct Debit

The Billing & Collection solution helps SEPAClosed Single Euro Payments Area allows customers to make cashless euro payments – via credit transfer and direct debit, to anywhere in the European Union. and UK insurers to handle direct debit payment operations, starting with the direct debit mandate activation procedure, in order to notify the bank about the payment arrangement between insurer and insured, up to the moment the payment is collected.

The Billing & Collection direct debit functionalities can be applied to policies that have the payment type set to Direct Debit, and their business status is in InForce or Suspended. For those policies, the solution processes all the invoices that are in Generated business status, with their due date less or equal to the current date, added to the value set in the numberOfDaysInAdvance parameter. For every valid policy with direct debit payment that has an invoice generated according to its payment schedule, the solution generates a payment instructions file that informs the bank to operate the direct debit payment (charge the premium amount on behalf of the insurer).

For implementing a certain direct debit flow, you must choose its corresponding Direct Debit Type, either SEPA or UK. Learn how to set the solution for DIDE processing by accessing the Configure the Direct Debit Type page. The main steps for the SEPA and UK direct debit types are given below.

Direct Debit Business Workflow

FTOS_PYMT_DirectDebitMandate is the master business workflow that handles the different types of changes affecting a direct debit mandate during its lifetime, like transitioning the mandate through different versions and business states (from Draft to Expired). All the updates are logged in the mandate history tab, for further analytical use.

Below, an example of the FTOS_PYMT_DirectDebitMandate business workflow - as it is displayed on FintechOS Studio: