What is a Direct Debit mandate?
A Direct Debit mandate gives service providers written permission to take payments from their customers bank accounts. Payments cannot be collected until the mandate has been signed and agreed by the customer.
Direct Debits are the safest and most trusted method of collecting recurring payments or repayment of loan. Direct Debit’s popularity can be directly attributed to its airtight security processes, which start with a Direct Debit mandate, also known as a Direct Debit instruction.
How a Direct Debit mandate works
Before any payments can be collected from a customer’s bank account, a Direct Debit mandate must be signed. This gives service providers the green light to take future payments under the following caveats:
|Once the mandate has been signed and processed by the bank, all future payments are authorised|
|Customers are given advance notice before payments are taken, providing customers with a notification.|
|Recovered funds are settled into your Wired banking Wallet.|
Setting up a Direct Debit mandate
Direct Debit mandates can be completed in three primary ways:
In order to fill in a Direct Debit mandate, customers require their name, bank name, sort code, account number, and debit frequency. Once they have filled out their information, the mandate will need to be sent to Wired Banking Processing system, which will then transfer it to the bank.
Two types of mandate
Paper mandate forms
customer are required to fill the form and submit it to their bank for approval
Electronic mandate forms
customer is to fill the form and submit to you while you process it on Wired Banking management system.
All request are auto forwarded to the customer bank, The bank will enage the customer for comfirmation hereafter direct debit mandate wil be set and all recovery will be credited on your wired banking lite wallet.