Direct Debit Scheme

Direct Debit

A Direct Debit is an arrangement between a customer, his bank and the organisation with which he has a contract, to collect amounts due from the customer in an efficient and cost-effective manner. Direct Debit is acknowledged as one of the most cost-effective methods of bill collection available. This method eliminates the need to visit banks on a regular basis while the bank will take care of the amounts due, as agreed.

Code	Name	Type	Size	Date
DirectDebit	Direct Debit Schema Manual v. 1.0 (English)	PDF	4.44 MB	30 Jun 2004
Mandate	Direct Debit Mandate (English)	PDF	119 KB	01 Jan 2008
Mandate	Direct Debit Mandate (Arabic)	PDF	140 KB	01 Jan 2008

Direct Debits Parties

The principal parties in the Direct Debiting Scheme are:

The Originator, i.e. the Company (electricity, telephone, car leasing company etc…) that provides the goods or service
The Sponsoring Bank, where the Originator maintains its accounts.
The Payer, i.e. the Bank customer who wishes to pay the bills and whose account is to be debited.
The Paying Bank, i.e. the Bank holding the Payer’s account, which is to be debited.

Code	Name	Type	Size	Date
ORGList	Direct Debit Originators List	PDF	333 KB	01 Jun 2008

Life Cycle of a Direct Debit

Day In Detail

Input Day The Originator inputs the payment requests in a batch file and transmits the file to his Sponsoring bank.

Processing Day The Sponsoring bank processes the Direct Debit file and sends individual direct debits to Payers’ bank through the SARIE system.

Entry Day Each individual direct debit is presented for payment on the Payer’s account at the Paying Bank.

Amend Day The last day on which the Paying Bank can send an amendment to prevent payment of a direct debit.

Maturity Value Day The funds will be credited to the Originator’s account at the Sponsoring bank as long as the direct debit and the account are in order.

Reporting Day Direct Debit instructions that are returned from the Payer's bank to the Sponsoring bank are printed and presented to the Originator for further action.

Day	In Detail
Input Day	The Originator inputs the payment requests in a batch file and transmits the file to his Sponsoring bank.
Processing Day	The Sponsoring bank processes the Direct Debit file and sends individual direct debits to Payers’ bank through the SARIE system.
Entry Day	Each individual direct debit is presented for payment on the Payer’s account at the Paying Bank.
Amend Day	The last day on which the Paying Bank can send an amendment to prevent payment of a direct debit.
Maturity Value Day	The funds will be credited to the Originator’s account at the Sponsoring bank as long as the direct debit and the account are in order.
Reporting Day	Direct Debit instructions that are returned from the Payer's bank to the Sponsoring bank are printed and presented to the Originator for further action.

Direct Debit Work Flow

Step Action

1 The Originator invites the Payer to pay his bills by using the automated Direct Debit Scheme.

2 The Payer agrees to use the scheme, completes a Direct Debit mandate form and returns it to the Originator.

3 The Originator sends the completed Direct Debit mandate to the Paying Bank.

4 The Paying Bank then records the fact that the Payer has given permission to the Originator to debit his account subject to the terms of the mandate he has signed and subject to the Direct Debit Scheme Rules and Regulations.

5 The Originator starts presenting Direct Debits to the customer’s account on or after the date agreed.

6 The Paying Bank debits the Payer’s account (the account nominated in the mandate), and the Originator’s account is credited.

7 Direct Debits can be presented for payment for as long as the mandate remains valid.

Step	Action
1	The Originator invites the Payer to pay his bills by using the automated Direct Debit Scheme.
2	The Payer agrees to use the scheme, completes a Direct Debit mandate form and returns it to the Originator.
3	The Originator sends the completed Direct Debit mandate to the Paying Bank.
4	The Paying Bank then records the fact that the Payer has given permission to the Originator to debit his account subject to the terms of the mandate he has signed and subject to the Direct Debit Scheme Rules and Regulations.
5	The Originator starts presenting Direct Debits to the customer’s account on or after the date agreed.
6	The Paying Bank debits the Payer’s account (the account nominated in the mandate), and the Originator’s account is credited.
7	Direct Debits can be presented for payment for as long as the mandate remains valid.