As of the 21st November 2016 version 9,2 of the SDD CORE rulebook will come into effect, meaning that all banks will have to comply with the timelines originally specified by COR1. Discover what this will change for merchants and what advantages the new direct debit schedule will bring.
Current situation
At present there are two versions of the SDD Core Scheme.
- SEPA Direct Debit Core: Merchants submit the collection to the banks five business days before the payment due date for a first payment, and two business days before for any subsequent payments.
- SEPA Direct Debit COR1: Merchants submit the collection one working day before payment is due, for both the first payment, and subsequent payments.
Currently COR1 is an optional scheme with limited reachability. Country wise it is mainly supported in Austria, Germany and Spain. However, from the 21st November 2016 onwards all banks have to comply with the timelines specified by COR1.
What will change?
Technically SEPA Direct Debit COR1 will become obsolete and CORE will adopt the same timeline as COR1. This means that FRST and RCUR payments will be treated the same, meaning that merchants can submit all direct debit payments one day before the collection date.
Psssst, want to become a SEPA direct debit expert? Download our free SEPA direct debit guide!
What advantages will it bring?
The rulebook version 9.2 will reduce the collection timeframe, optimising the cash flow, meaning that merchants will be paid even faster. This change also simplifies the process for submitting payments and positions SEPA direct debit as a more competitive method for fast payment. There should also reduce r-transactions, as the AG02 reject code associated with the FRST sequence will cease to exist and debtor account amendment is the same whether the debtor has moved their account within the same bank or within another bank
What do you need to do?
SlimPay is fully prepared for this change and SlimPay clients don’t need to do anything, we will automatically change payments to the new schedule. If you are not yet a client and to optimise and simplify your direct debit payments, get in touch!
If you are collecting your direct debits with your bank however, you should contact them to know what need to be change with regards to your current implementation.
