Archived 2022.12.11. Content moved to Guidance on direct debits
Question
For the Payments API – specifically for Direct Debits endpoints, what are examples of these Direct Debits that banks are expected to expose to Data Recipients. We interpret this as any scheduled direct debit for Home Loans, Personal Loans, Credit card. Is this correct?
Answer
The intention of the direct debit end point was to provide data on direct debit authorisations (ie. customer authorisations to a merchant to debit an account directly). This is the designated data cluster that this API was intended to provide.
If one of the payment types mentioned falls into this category (ie. payments on a home loan with Bank A are paid via Direct Debit from an account at Bank B and the customer has authorised this) then it should be included. The purpose of the direct debit is not a defining characteristic. It is only the existence of an authorisation that defines inclusion.
Comments
7 comments
Jarryd James Bligh - just wanted to clarify one thing with regards to direct debits (both in Direct Debits and Transaction API context)
From DH perspective, are these meant to be purely debit transactions, i.e. customer has asked another party to debit the account with us? Or are we also meant to include direct debits where the customer has set up a direct debit on our side to debit other bank's account, in which case it would be a credit on the account on our side?
Thanks
Hi Jakub Vozarik,
Thanks for the question - it should only be represented on the Payer side (ie. the person paying the money), not the Payee side (ie. the Merchant).
Regards.
Hi Jarryd,
Sorry to hijack thread, but wondering about internal direct debits - assuming these are also to be included?. E.g. payments on a home loan with Bank A are paid via direct debit from the customer's deposit account at Bank A. Thanks, Alex
Hi Jarryd - just wanted to follow up on Alex Histon question. Might be a good idea to define a convention on this as it seems "direct debits" has a different interpretation for individual DHs?
Alex Histon and Jakub Vozarik - received this question and now getting an answer. Apologies for the lateness of the reply.
Hi Alex Histon and Jakub Vozarik
Direct Debits normally cover situations where a direct debit is made from an account from another account holder (for instance, regular payments for a gym membership). These are normally done via BECS or directly if both parties are customers of the same institution.
This is very different to regular repayments scheduled by the bank for home loan or credit card payments. These would normally be represented either in account details or in the scheduled payments end points.
It is, however, at the discretion of the Bank how they represent these items to align with how they would represent these types of payments in other channels.\
Hope that helps.
Hi all,
Added the following knowledge article to cover these comments: https://cdr-support.zendesk.com/hc/en-us/articles/900004393806-External-vs-Internal-Direct-Debits
Thanks,
-Jarryd
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