Business Guide - Direct Debit v2.0

Direct Debit Business Guide 2.0

Direct Debit Business Guide - 2.0 July 20, 2010 Page 2 of 43

Table of Contents 1 GlobalCollect Contact Information .......................................... 4

2 Goal and Context ....................................................................... 5

2.1 Overview of important documents ................................................................ 5

2.2 Version History ................................................................................................. 6

2.3 Disclaimer ........................................................................................................ 6

2.4 Suggestions ..................................................................................................... 6

3 General Information ................................................................... 7

3.1 What are Direct Debit payments ................................................................... 7

3.2 Advantages ..................................................................................................... 7

3.3 Disadvantages ................................................................................................ 7

4 How It Works ................................................................................ 8

4.1 General Payment Flow ................................................................................... 8

4.2 State Transition Diagram ................................................................................. 9

5 Coverage .................................................................................. 10

6 How To Get Started ................................................................... 11

6.1 WebCollect Interfaces .................................................................................. 11

7 Processing Direct Debit Transactions ...................................... 13

7.1 Rejections and Refusals ................................................................................ 13

7.2 Payment Processing ..................................................................................... 13

7.3 Reversals and Refunds .................................................................................. 13

8 Matching and Reporting .......................................................... 15

8.1 Reporting ....................................................................................................... 15

8.2 Cut-off Time ................................................................................................... 16

9 Other Activities .......................................................................... 17

9.1 Payment Inquiries ......................................................................................... 17

9.2 Dispute Management ................................................................................... 17

9.3 White Mail ...................................................................................................... 18

10 Prevention of Reversals ......................................................... 19

10.1 Methods Without Risk of Blocking Transactions .......................................... 19

10.2 Methods With Risk of Blocking Some Transactions ..................................... 20

11 Country Specific Information ................................................ 22


11.1 Austria (AT) .................................................................................................... 22

11.2 Belgium(BE) ................................................................................................... 23

11.3 Switzerland (CH) ............................................................................................ 24

11.4 Germany (DE) ................................................................................................ 25

11.5 Spain (ES) ....................................................................................................... 26

11.6 France (FR) .................................................................................................... 27

11.7 Great Britain (GB) .......................................................................................... 28

11.8 Italy (IT) .......................................................................................................... 31

11.9 The Netherlands (NL) .................................................................................... 32

12 Appendix A: Sample Mandates ........................................... 34

12.1 Austria (AT) .................................................................................................... 34

12.2 Belgium (BE) .................................................................................................. 35

12.3 Switzerland (CH) ............................................................................................ 36

12.4 Germany (DE) ................................................................................................ 37

12.5 Spain (ES) ....................................................................................................... 38

12.6 France (FR) .................................................................................................... 39

12.7 Great Britain (GB) .......................................................................................... 40

12.8 Italy (IT) .......................................................................................................... 41

12.9 The Netherlands (NL) .................................................................................... 42

13 Appendix C: Refusals and Reversal Reasons ...................... 43

13.1 Customer reversed ....................................................................................... 43

13.2 Not Customer Reversed................................................................................ 43


1 GlobalCollect Contact Information

GlobalCollect Europe GlobalCollect

Planetenweg 43-59

2132 HM Hoofddorp

The Netherlands

Tel: +31 (0)23 567 1500

E-mail: [email protected]

GlobalCollect Americas Three Embarcadero Center

Suite #2900

San Francisco, CA 94111

United States

tel: +1 (415) 975 0969


GlobalCollect Asia-Pacific 8 Temasek Boulevard,

#21-04 Suntec Tower Three

038988, Singapore

tel: + (65) 6408 8222


GlobalCollect Latin America Av. Alicia Moreau de Justo 846

2nd Floor, Office 11

1107AAR, Buenos Aires

Argentina

tel: + 54 (11) 5272 1189


Website Visit the GlobalCollect website www.globalcollect.com for information about the

products and services that GlobalCollect offers. In addition you can watch online

demonstrations of the payment platform and an online shop.

mailto:[email protected]




http://www.globalcollect.com/


2 Goal and Context

This document‟s objective is to provide general business and operational information

about GlobalCollect‟s processes and procedures for external use. The Direct Debit

Business Guide is relevant to business managers, operations managers, technical

managers and project managers. The document is part of a range of documents

published by GlobalCollect that contain additional information on technical, operational,

and administrative aspects.

2.1 Overview of important documents

The following set of documents may be relevant.

The Implementation Guides

The Implementation Guides contain an overview of information required from the

Merchant to configure GlobalCollect‟s applications and the guides also provide an

overview of actions to be taken when implementing those applications.

Current Implementation Guides:

Implementation Guide

Application Form

Intake Form

Programmers Guides

The Programmers Guides are technical guides detailing interfaces between Merchants

and both online and offline platforms.

Current Programmers Guides:

Programmers Guide – WebCollect

Programmers Guide – Reporting

Business Guides

The Business Guides give an overview of the basic services GlobalCollect offers. They also

describe procedures relevant to the Merchants.

Current Business Guides:

Business Guide - Card Payments

Business Guide - PayOuts

Business Guide - Risk Management

Business Guide – Invoicing

User Guides

The User Guides are the manual for applications that can be directly accessed by the

Merchant.

Current User Guides:

User Guide - Payment Console

User Guide - Call Centre Application

User Guide - Invoicing

User Guide - Fraud Screening

Administrative Guide

This Guide includes a description of GlobalCollect‟s reconciliation model. It offers in-

depth explanations of reporting periods, cut-off times, identifying references in on- and

offline interfaces and the relationship between operational and financial reports.


Technical Platform plus Service Levels

These documents contain an overview of the technical setup of the online and offline

platforms of GlobalCollect and GlobalCollect‟s committed service levels.

Network plus Network Glossary

The Network is a dynamic document detailing country and product availability. It is

updated frequently to reflect GlobalCollect‟s processing capabilities and country

presence. The Glossary extensively details all available payment varieties GlobalCollect

offers to Merchants.

2.2 Version History

The most recent versions of GlobalCollect‟s product documentation are available on the

Payment Console. Notification on documentation updates is done through the

GlobalCollect Insider eNewsletter and Payment Console news reel. Please note that this

document is normally updated once per quarter; therefore, it may not fully reflect the

actual situation during this quarter. Adjustments that have been planned during the

quarter are included in this document as often as possible.

2.3 Disclaimer

© 2010 Global Collect Services B.V. All trademarks, service marks and trade names

referenced in this material are the property of their respective owners. The information

contained herein is provided as a courtesy and is for general informational purposes only.

This document is not intended to be a complete description of all applicable rules,

policies and procedures. The matters referenced are subject to change from time to

time, and individual circumstances may vary. Global Collect Services B.V. shall not be

responsible for any inaccurate or incomplete information. The information contained

herein includes, among other things, a compilation of information received from third

parties, and any such information is and shall remain the property of its respective owner.

Nothing contained in this presentation is intended to supplement, amend or modify any

applicable contract, rule or regulation.

GlobalCollect has given extensive attention to the content of this document but makes

no warranties or representations about the accuracy or completeness of it. Neither

GlobalCollect nor any of its affiliates shall be liable for any direct, incidental,

consequential, indirect or punitive damages arising out of access to or use of any

content of this document. Because of the complexity of the process and the right of

Banks to alter conditions, this document can only serve as a description and is subject to

further modifications.

2.4 Suggestions

Suggestions regarding the content of this document are welcome and may be

forwarded to the attention of Product Management at

[email protected].



3 General Information

3.1 What are Direct Debit payments

A Direct Debit is a way to collect an amount directly from a bank account. It is

considered a pull payment method as the collection of the funds is initiated by the

merchant. The bank account details are provided to the merchant together with a

mandate for the debiting of the bank account. The merchant instructs GlobalCollect to

retrieve the amount due from the bank account at the desired date.

It is typically used to make recurring payments; such as utility bills and subscriptions. Unlike

standing orders, which require the amounts to be fixed, Direct Debits can be used for

varying amounts; the payee can simply indicate a different amount each time. In

countries where setting up authorization for Direct Debit is easy, it can also be used for

one-time payments in the mail order business or even at a point of sale. Direct Debit is a

highly accepted means of payment in Germany and the Netherlands. The payment

method is ideal for recurring low-value transactions.

3.2 Advantages

Cost effective

Optimal for recurring payments

Can be used for both recurring and one-off payments

3.3 Disadvantages

Often a paper mandate is still required from every consumer

Transactions can be reversed even if mandate is in place

Limited real time feedback on transaction


4 How It Works

In general the process to submit Direct Debit transactions for processing to GlobalCollect

consists of three steps for the merchant:

The collection and submission to GlobalCollect of payment information (bank

account details)

The collection of the signed mandates from the consumer (signed approval) and

subsequent processing of this mandate depending on the local regulations

The request to debit the consumer‟s bank account

In some countries, the paying Banks do not keep records of the mandates. This means

that they are not capable to check whether a mandate has been obtained by the

Merchant. As GlobalCollect does not keep records of the mandates either,

GlobalCollect will always assume that this mandate is in the possession of the Merchant.

The Merchant is in all cases responsible to obtain and maintain the mandates.

Some Direct Debit schemes also require the Merchant to notify the Consumer in advance

of the impending debiting of their account. GlobalCollect does not send out any

notifications to account holders prior to their account being debited. This has to be done

by the Merchant.

Please see section 11 Country Specific Information on the specifics of the mandate

handling and notification requirements per country.

4.1 General Payment Flow

The figure below shows the flow of information and funds that occurs for a Direct Debit.

Figure 1: Direct Debit Payment Flow


1. Consumer chooses to pay by using Direct Debit and provides bank account

details.

2. Consumer sends authorization for transaction in the form of a mandate

3. Merchant requests to debit the amount from the Consumer‟s bank.

4. If the request is approved the funds are remitted to GlobalCollect‟s bank account

with an attached report detailing the transaction.

5. Funds are remitted to GlobalCollect and statements are gathered to process all

incoming payments

6. The Merchant is informed of the transaction‟s status and if successful the funds are

remitted to his bank account

4.2 State Transition Diagram

During the processing of a transaction, the payment status will change each time the

transaction is updated in GlobalCollect‟s systems. The Programmers Guide provides in

depth information on each status that might be reported for a transaction.

In the diagram below you can see the full process diagram for Direct Debit transactions.

Figure 2: Direct Debit State Transition Diagram


5 Coverage

Please refer to the Network and Network Glossary documents for the most up-to-date

information regarding the coverage of GlobalCollect‟s Direct Debit Service. Within its

Network, GlobalCollect frequently works with various suppliers (e.g. banks, printers, postal

companies, Telco‟s/ISPs, and so on) for similar services. Within the condition that the end

product is not noticeably different to the Merchant, GlobalCollect may process with

various suppliers simultaneously, switch between suppliers, terminate certain suppliers,

and add new ones. Reasons to change are commonly related to service and/or cost

levels. As they do not have any impact on Merchants, such changes are not

communicated externally.

Currently, GlobalCollect support the processing of Direct Debits in the following countries:

Australia*

Austria

Belgium

Canada*

France

Germany

Great Britain

Italy

The Netherlands

Spain

Switzerland

United States*

* Australia, Canada and the United States are currently being piloted.


6 How To Get Started

To get started, a Merchant will be allocated a GlobalCollect Account and will have to

be able to start sending and receiving input and report files to and from GlobalCollect.

The Merchant will also receive a SFT (Secure File Transfer) account to upload and/or

download data.

For the processing of Direct Debits it might be necessary for the Merchant to open local

bank accounts. You can see which countries will require you to open a local bank

account in section 11 Country Specific Information below. GlobalCollect will assist in the

process of opening the necessary bank account.

The maximum number of characters available to add a description per transaction on

the Consumer‟s statement varies per country.

6.1 WebCollect Interfaces

The single-interface of WebCollect takes the complexity out of the integration with your

sales channels. WebCollect facilitates payment processing using our highly secure servers

via XML based APIs.

The WebCollect payment processing platform provides a reliable online Direct Debit

submission service. In addition to the advantage of the real time processing, a number of

additional functionalities such as recurring payments, online checks on bank account

information and online reporting are available through WebCollect. Although the

feedback on processing is immediate, the reporting on settled transactions, reversed

transactions, and so forth is done once a day through Secure File Transfer (SFT).

There are four distinct ways to connect to the WebCollect in order to submit Direct Debit

payments.

CustomerLink

CustomerLink integrates GlobalCollect‟s check-out and payment pages within the

Merchant‟s website. A “ready to use” solution that includes usability tested check-out

pages with instructions available in up to 28 languages. The look and feel of the

payment pages can be customized to fit the Merchant‟s branding, while all links to

financial institutions and payment instructions are kept up to date by GlobalCollect.

Additional functionalities include the possibility to send e-invoices as well as customized e-

mails to customers.

MerchantLink

Merchant Link is designed for Merchants who prefer to use their own online shop and

payment pages. With this interface the Merchant is in full control of the end user

experience. Accordingly, the Merchant collects and stores the customers‟ payment

details and has full control over the content, navigation and layout of the check-out

pages. This integration consists of a single XML interface to WebCollect. GlobalCollect‟s

response will indicate if the transaction can be further processed or not.

Hosted MerchantLink

Hosted MerchantLink combines the flexibility of MerchantLink with the convenience and

built-in security of CustomerLink. The check-out process and choice of payment method

takes place on the Merchant‟s website, yet the capturing of the specific bank account

data needed to process the transaction is hosted by GlobalCollect, which also takes

care of the routing to banks and service providers.


At a glance:

Integration option Order page hosted by Payment page hosted by Feedback page hosted by

CustomerLink GlobalCollect GlobalCollect GlobalCollect

MerchantLink Merchant Merchant Merchant

Hosted MerchantLink Merchant GlobalCollect Merchant

Call Center Application

For call centers that act as a Merchant‟s in or outbound sales channel, GlobalCollect

offers online real time access to the WebCollect platform through the Call Center

Application. Using this web based interface, multi-currency credit card and Direct Debit

transaction details can be entered directly, enabling immediate authorization and

processing.


7 Processing Direct Debit Transactions

After all the necessary data has been captured to process the Direct Debit and the

mandate has been handled, the Merchant can instruct GlobalCollect to debit the

Consumer‟s bank account.

This is done by issuing a separate API call to the MerchantLink interface.

7.1 Rejections and Refusals

GlobalCollect performs extensive checks on the validity of the information received to

avoid costs from passing on incorrect and/or incomplete information to its Banks, printers

etc. The processing of the files and records may therefore result in records being rejected

by GlobalCollect due to a lack of required data or due to other reasons. GlobalCollect

will report any rejected transaction with the reason for the rejection.

GlobalCollect will bundle all Direct Debit transactions in settlement files that are sent to its

banks for processing. Some transactions can be refused for processing by GlobalCollect‟s

banks due to, for instance, incorrect data that the bank can verify directly. GlobalCollect

will report any refused transaction with the reason for the refusal.

7.2 Payment Processing

Payment reports from banks within the GlobalCollect Network are gathered daily at 09:00

CET. These reports usually contain transactions received by GlobalCollect during the

previous 24 hours. Payments cleared to an account after the cut-off time will be part of

the statement retrieved the following day. The processing of these payment records takes

place on the day of the retrieval of the payment information before 16:00 CET.

If a Direct Debit file has been credited, the individual debit transactions it contains will

automatically be matched to the individual records delivered.

Payments will only be reported as paid after the funds have been cleared on the

GlobalCollect accounts. The clearing time agreed with GlobalCollect‟s banks differs by

bank and varies between 1 and 7 days. Please note that this time span only covers the

period between receipt of the settlement files by the bank and crediting of

GlobalCollect; it does not include time involved in processing and reporting of the

payment by GlobalCollect.

7.3 Reversals and Refunds

After transactions have been settled, some of these might be reversed as what is known

as „bank reversals‟. This can be due to low funds, blocked or closed account, etc. These

reversals are transactions that simply could not be processed by the bank of the

Consumer. GlobalCollect will report these reversals to the Merchant and will deduct

these transactions from the remittance to the Merchant.

GlobalCollect receives 99% of bank reversals within 3 business days. Merchants should

always wait with the fulfillment of the order until after 5 days have passed since the

debiting the Consumers account. This way, all bank reversals have been processed and

the Merchant can safely send out the goods or make the service available. If the

Merchant does not wait and makes the goods or service available immediately, they will

become more vulnerable to fraudulent Direct Debit transactions.

The Merchant should also wait with the submission of refund requests to GlobalCollect

until after the 5 day period of bank reversals have past, otherwise the Merchant is at risk

of crediting the Consumer twice.


Consumers can reverse the Direct Debit transaction at will. This can be done because

they don‟t recognize the transaction or because they are unhappy with the Merchant‟s

service or goods. GlobalCollect will report these reversals to the Merchant and will

deduct these transactions from the remittance to the Merchant. The time period that

Consumers have to reverse a Direct Debit differs per country. For information on the

reversal policies in the different countries, please see section 11 Country Specific

Information below.

Please note that the banks have 30 days to process these reversals and that this is added

to the above mentioned time periods. Additionally, any Direct Debit that does not follow

the expected pattern for the Consumer, i.e. change in periodicity, unexpected amount,

also falls in the category of unauthorized Direct Debits.

Internally, within GlobalCollect, Direct Debit reversal rates are being monitored.

GlobalCollect‟s partner banks are also being monitored by the Direct Debit authorities.

Therefore, in order to protect GlobalCollect‟s banking relationships and avoid being

closed down because of excessive fraud / reversals; GlobalCollect must ensure that its

Merchants stay below the 5% level for Consumer reversals. If a Merchant exceeds this

reversal level, GlobalCollect may have to suspend Direct Debit processing. GlobalCollect

will alert the Merchant to whether they are being monitored.

GlobalCollect is aware that some of its banking relationships count both customer

reversals and bank refusals when calculating the Merchant‟s overall reversal rate.

GlobalCollect is working with its banks to only look at truly consumer reversals because

refusals corrupt the ratios.

7.3.1 Bank Payments on Direct Debits

Merchants who have selected GlobalCollect for their Direct Debit processing, should be

prepared to receive Consumer initiated bank payments. An example of why the

Merchant should be prepared for this is that after a Direct Debit is reversed the Consumer

can decide to make the payment after all and chooses the bank transfer as payment

option. This is possible as the account number of GlobalCollect will usually be provided by

the bank after a payment was reversed.

The following measures need to be in place: setting up a contract with GlobalCollect for

Bank payments and adjusting the systems to be able to process the daily reports with

bank transfer records included.


8 Matching and Reporting

Reporting on transactions delivered to and processed on the WebCollect platform will

partly be online. To the extent that online transactions are passed on to or directly

delivered to the BatchCollect platform (for printing, clearing, crediting, debiting etc.),

reporting is as follows.

The Merchant will receive a Payment Report per Account with rejected records, refusals,

payments, reversals, and corrections, on a daily basis before 00.00 CET.

Example of processing steps:

1. Record is received before 07:00 CET on day 1

2. Records are processed and reported on day 1 before 21:00 CET

3. Rejected records and payments are reported on day 2 before 21:00 CET

4. Reversed transactions are received between day 2 and later and are reported

between day 3 and later

In addition to the Report file, the information on those transactions is also made available

on the Payment Console daily as of 21.00 CET.

The daily report file may contain information on various input-files. As the daily report

contains the transactions processed the preceding day no reports are generated on

Saturday and Sunday.

Once reported, the corresponding funds – both debits as well as credits - are available

for remittance. The actual remittance covers the transactions processed on one or more

business days, usually a week.

8.1 Reporting

The Programmers Guide – Reporting describes the reconciliation models for several

payment methods. It provides Merchants with information about the relationship

between the different reports, the way they to reconcile the reported payments and how

to explain the total amount that is remitted to the Merchant every week.

Each transaction and each payment processed by GlobalCollect triggers reports being

created and sent to the Merchant. These reports provide information about the

payments processed and the total amount in different currencies that have been

collected for the Merchant. It helps Merchants to update their own order administration

and reconcile the reported payments with their orders.

8.1.1 Reporting Model

The reporting model of GlobalCollect is a three-layer model:

1. Daily Payment Reports, on individual transaction level

2. Weekly Collection Reports, totals per currency per operational account

3. Weekly Financial Statement, totals per remittance account

8.1.2 Settlement of Payments

The date a payment, reversal or refund is processed by GlobalCollect, determines the

period in which the money will be remitted. The moment of receipt on its bank account

determines GlobalCollect‟s settlement date.

8.1.3 Reconciliation Model

The reconciliation model explains the relation between the moment a payment was

submitted by the Merchant‟s system, the moment it was processed by GlobalCollect and

the moment the payment is reported and remitted. An important parameter is the cut-off

time of WebCollect.


8.1.4 Reporting Timelines

Summary of processing steps:

1. Payments received in back-office on day X are processed the same day.

2. Payments processed on day X are reported on day X.

Financial reports are made available on Monday morning, reporting the previous week.

During the weekend no payments are processed.

8.2 Cut-off Time

WebCollect uses a cut-off time of 07:00 CET. All transactions that are registered in

WebCollect before 07:00 CET are processed the same day in the back-office of

GlobalCollect. Transactions registered later will be processed the next business day.

The moment a transaction takes place has a consequence on the speed of processing

and settlement of the payment.


9 Other Activities

In addition to the process described above, there may be additional activities that are

not processed automatically.

9.1 Payment Inquiries

Payment Inquiries, such as inquiries for individual transactions that may have been

received by GlobalCollect but that were not yet reported will only be handled on the

basis of a fully completed online “Payment Inquiry”, which can be generated through the

Payment Console.

Payment Inquiries received before 09:00 CET will be logged, processed and responded to

on the same business day. Inquiries received after 09:00 CET will be handled the next

business day.

If necessary, a Proof of Payment will be requested from the Merchant. The Proof can be

attached as a scan along with the email. As Proof of Payment GlobalCollect will accept:

copy of a bank statement of the Consumer

cash receipt from the bank of the Consumer

Both should contain at least the following items:

currency and amount

date

beneficiary name

account number of beneficiary

If the payment can be identified on the basis of the information in the Payment Inquiry, it

will be matched and reported as usual. The response to the Payment Inquiry contains the

reason why the payment could not be matched without the information provided by the

Merchant. In the event the Merchant provides a valid Proof of Payment but

GlobalCollect has not received and/or cannot identify the payment, it will process and

report the payment as normal.

The Merchant should provide contact details in their communications with Consumers so

that inquiries will be directly addressed to the Merchant without interference from

GlobalCollect. In the case that GlobalCollect receives Inquiries by email from Consumers,

these will be logged, and sent to the merchant as per the contact details provided to

GlobalCollect.

9.2 Dispute Management

Consumers may dispute a transaction through their Bank. The Consumers‟ Bank will

contact the Bank of GlobalCollect which, in turn, will contact GlobalCollect. Although

GlobalCollect will only mediate a dispute, it will log the Dispute Inquiry and forward the

relevant information to the Merchant by email. Before doing so, GlobalCollect will check

whether the disputed transaction was already refunded by the Merchant and – if so –

report this to the Bank directly. A Merchants‟ response will be logged and forwarded to

the Bank.

Merchants may dispute a reversal of a transaction. Although GlobalCollect will only

mediate the dispute, it will log Dispute Inquiries, forward the Inquiries to the Bank and log

the response. If the dispute results in a financial transaction, this will be reported through

the normal reporting process. Dispute Inquiries may be emailed to

[email protected].



Dispute Inquiries received from Banks or Merchants before 12:00 CET will be processed,

forwarded and responded to on the same business day. Merchants should consider the

reversal reason when disputing the reversal. It is imperative to provide the information to

the bank which supports the charge and explains the Consumer‟s claim.

9.3 White Mail

From time to time, GlobalCollect may receive correspondence regarding transactions

from its Banks, from Consumers‟ Banks or from Consumers directly. To the extent that it

cannot be reported electronically, this correspondence is forwarded by priority mail on

Wednesdays to the Merchant to a mail address agreed in advance.

Correspondence carrying information that can be reported electronically will be

destroyed after processing.


10 Prevention of Reversals

Direct Debit reversals can be difficult to prevent as there is no online authorization done

to verify the validity of the account details (for doing a Direct Debit) and the availability

of funds. To prevent the number of transactions that are reversed from surpassing the

acceptable levels, several methods can be employed. This section details the prevention

methods a Merchant can employ to lower their reversal risk.

There are two types of methods; those that have no risk of blocking transactions and

those that do.

10.1 Methods Without Risk of Blocking Transactions

10.1.1 Explanation of the process

Offer clear information on what will happen with the data supplied. In case the data will

be used for more than one transaction, i.e. recurring billing, it is advised to have the

Consumer tick a checkbox that they agree with their account being debited multiple

times. Also list the periodicity that the account will be debited.

10.1.2 Explanation of GlobalCollect‟s role

In most cases the Direct Debit beneficiary is GlobalCollect and not the Merchant. This

might confuse Consumers and make them not recognize the transaction on their bank

statement. To avoid this Merchants should always explain the role that GlobalCollect is

playing in the collection of the funds. This aids in the reduction of the number of

Consumer reversals due to the fact that the consumer does not recognizes the

transaction.

10.1.3 Refund Policy

Make sure you have a disclaimer available for your consumer containing your refund

policy. If possible make sure the consumer accepts this policy during the checkout

process to make sure they have read and understand your process.

10.1.4 Descriptive text on consumer statement

With every Direct Debit Merchants are required to deliver a descriptive text that will be

printed on the bank statement of the Consumer to aid in the recognition of the

transaction. It is recommended that the following information be included as part of the

descriptive text:

URL (if applicable),

Name of the product

Local Customer Service phone number (if possible tool free)

This aids in the reduction of the number of Consumer reversals due to the fact that the

consumer does not recognizes the transaction.

Additionally, the descriptive text that the Consumer will be seeing on their statement can

be displayed on the payment pages/confirmation page or confirmation email at the end

of the checkout process. This way the Consumer is already familiar with the descriptive

text and is less likely to not recognize the transaction on their statement.

10.1.5 Notifications

Send an email to the Consumer informing that their account will be debited right before

the actual debiting of the account takes place. The descriptive text that the Consumer

will see on their bank statement can also be displayed in the notification email. This way

the debiting does not come as a surprise and the Consumer is already familiar with the

descriptive text and is less likely to not recognize the transaction on their statement.


The sending of notifications is especially useful if there is a large gap between the

transaction date and the debiting of the account.

10.1.6 Bank details validity checks

Avoid bogus account details to be submitted by enabling checking of the proper details

and format for each Direct Debit as specified in the Programmers Guide – WDL

WebCollect Appendix H.

10.1.7 Debit just after salary payment period

To avoid transactions being reversed due to low funds, the actual debiting of the

account is best done after salary payments have been made. It has been proven that if

Merchants know at each country when salaries are paid and then debit the account

during that week, the success rate will increase significantly since it‟s more probable for

Consumers to still have funds in their accounts.

10.2 Methods With Risk of Blocking Some Transactions

10.2.1 Do Bank Validation

By using the DO_BANKVALIDATION or DO_RISKASSESSMENT APIs, Merchants can validate if

the bank account details are correct. These APIs validate the details against country- and

sometimes bank-specific rules. The bank details that are to be validated are different for

each of the supported countries. The country dependent bank details are listed in the

Programmer‟s Guide - WDL WebCollect.

This validation is available for all countries where GlobalCollect processes Direct Debits.

Please note that the validation is done against an extensive set of algorithms, but is not

checked with the clearing systems or banks. This means that it does not protect from

blocked, or closed accounts and low funds.

10.2.2 Block IP addresses outside of the country

If the Merchant have the ability to block IP addresses outside the county this will help in

filtering unwanted foreign transactions (which have low probability of being authentic).

Another option is to check the originating IP address of the Consumer and flag

transactions not coming from the country of the Consumer‟s bank account for further

investigation. The Merchant will then be able to evaluate the flagged transactions and

allow valid transactions to still be processed.

10.2.3 Velocity rules (max transactions per day)

GlobalCollect can limit the number of transactions done with the same account details

within 24 hours. If the maximum is reached any subsequent transactions are denied.

Optionally GlobalCollect can block the processing of transactions that can still be

cancelled with the same account details.

10.2.4 Velocity rules (max reversals over period)

For each transaction GlobalCollect can look at past behavior in terms of number and

type of reversals from the same account details.

GlobalCollect performs the following checks:

The number of reversals made by the same combination of Merchant ID, Account

Number, Bank Code, Branch Code, and Check Digit within the preceding 90

days.

Transactions will be denied if the number of reversals is larger than the allowed

maximum and has a status "customer reversed".


Transactions that do not pass this screen will be denied. Optionally Merchants

may have GlobalCollect mark these transactions as challenged and still process

these payments after manual intervention.

Transactions will be rejected if the number of reversals is larger than allowed and

the status is "not customer reversed". This usually indicates invalid account

information, closed or blocked account, etc.

10.2.5 GlobalCollect Blacklist

GlobalCollect will check all Direct Debit transactions against its own internal blacklist. If

the account details match an entry in the blacklist, GlobalCollect will deny the

transaction.

Merchants can request the addition of account details to the blacklist that they want

blocked for them.

10.2.6 InterCard Blacklist (Germany only)

Optionally GlobalCollect can check all German Direct Debit transactions against a

blacklist maintained by InterCard AG. This blacklist also includes the local blacklist of

stolen account details KUNO (https://www.kuno-sperrdienst.de/), which is an initiative to

fight crime on non-cash payments through non-police channels.


11 Country Specific Information

The different Direct Debit schemes can differ from each other in their requirements of

Merchants or Consumer allowances. In this section is described the main differences that

a Merchant should be aware of and take into account when processing Direct Debits in

the different countries.

11.1 Austria (AT)

11.1.1 License Requirements

GlobalCollect is licensed by the Austrian Bank to participate in the Direct Debit process.

This license covers all of GlobalCollect‟s Merchants, making it unnecessary for the

Merchant to obtain their own license.

11.1.2 Local Bank Account Requirements

The Merchant is not required to open their own local bank account. Funds debited from

the Consumer‟s bank account will be credited to a GlobalCollect account.

11.1.3 Administration of Mandates

The Merchant holds the mandates. Banks are entitled to request a copy of the mandates

if needed. The Merchant is responsible for updating its database of mandates. In case

GlobalCollect receives information on amendments or cancellations of the existing

mandates, this information will be forwarded to the Merchant through the “white mail”. A

swift update of the mandate database will reduce the number of refusals and reversals.

11.1.4 Layout of Mandate

There are no standardized forms. The mandate has to contain a number of prescribed

fields, these being:

name and address of the Consumer;

name and address of the Merchant;

reason of debiting;

number of days of reversal period;

account number and Bank sort code (=Bankleitzahl) of the Consumer.

date and place of signature;

signature of the Consumer;

The amount does not have to be printed in case of a continuous Direct Debit. The

mandate should also contain a text to explain to the Consumer how the Direct Debit

process is structured and which rights the Consumer has.

11.1.5 Notification Requirements

Notification to Consumers is not mandatory, but in case of varying amounts or periods it is

advised to notify the Consumer.

11.1.6 Consumer Reversal Periods

The Consumer‟s Bank does not keep any mandates on file and the Bank will allow the

Consumer a period of 56 calendar days after the debit took place to revoke a

transaction.

11.1.7 Collection Schedule

Processing time of the collection file depends on the country of processing and the

collection date (date the Consumer account is to be debited) delivered in the input file.


If the collection date in the input file has passed, the file will be rejected. GlobalCollect

requires a period of one business day to process the file.

Action Collection Day Cumulative

Merchant submits input file to GlobalCollect -2 1

GlobalCollect submits file to local Bank -1 2

Local Bank processes file on collection date as stated in input file 0 3

Local Bank credits account of GlobalCollect +1 4

Local Bank sends statement to GlobalCollect; payments are matched +2 5

GlobalCollect sends operational report file to the Merchant +3 6

11.2 Belgium(BE)


The Merchant will have to enter into a Direct Debit agreement with the local Bank. The

Merchant will then receive and identification number which is registered at the Belgian

Automated Clearing House (ACH).


A local Bank account is required in Belgium and is opened in the same Bank with which

the Direct Debit agreement is made.


The mandates have to be ordered with the Bank with which the account is opened.

These mandates consist of three copies. Copy 2 is to be kept by the Merchant. Copy 3 is

to be kept by the Consumer. The original will be held by the financial institution (ACH).

Procedure:

The mandate is filled in and signed by the Consumer and the payer (if payer/

accountholder differs from the Consumer). All copies are then sent to and

completed/ signed by the financial institution.

After the Merchant has received copy 2 from the financial institution, the

Merchant can store it in its database. The Merchant has to make sure that the

number on the mandate is the same as the one the Merchant will use.

If the Merchant refuses the mandate the Merchant returns its copy to the financial

institution together with a formal letter.

The Merchant can only use the Direct Debit instruction of the Consumer when the

Merchant received the signed copy 2 of the mandate from the financial

institution. Before this the Consumer cannot be charged with a Direct Debit

transaction.


The Bank has standardized mandates for Direct Debits it can provide to be used.


If the Direct Debit mandate relates to transactions with variable amounts or with a

variable frequency, a pre-notification is required. If the mandate relates to recurring

payments with the same amount and frequency, sending a notification once a year is

sufficient. The Merchant has to send the notification of the Direct Debit to the Consumer

at least 5 days before the transaction will take place, stating the date the amount will be

collected.


The Consumer has a period of 56 calendar days after the debit took place to revoke a

transaction.














11.3 Switzerland (CH)


The Merchant will have to be licensed by the Swiss Banking system. Together with

GlobalCollect the Merchant can obtain this license and will be given a Direct Debit

identification name.


A local bank account is required in Switzerland.


The mandates have to be ordered with the Bank. Two types of Direct Debit mandates are

used: mandates without reversal option and mandates with reversal option. Merchants of

GlobalCollect will use the mandates with reversal option.

The mandates consist of three copies. Copy 2 is to be kept by the Consumer. The

Merchant will hold copy 1 and the Bank of the Consumer will hold the original.

There are two methods that can happen for submitting mandates.

First method:

the mandate is signed by the Consumer, the original and copy 1 are sent to the

Merchant;

the Merchant forwards the mandates (original and copy 1) to its Bank;

the Bank forwards the mandates to the Bank of the Consumer. The mandates are

lodged by the Banks in their systems and the remaining information (clearing

number of Consumer‟s Bank; correct account number and name and address of

Consumer) are added to the mandates;

the original is kept by the Banks and the Merchant will receive copy 1.

Second Method:

the mandate is signed by the Consumer, the original and copy 1 are sent to the

Bank of the Consumer;

the Bank lodges the mandate and adds the additional information;

the Bank forwards copy 1 to the Merchant with the correct information (see

above).


Banks have standardized mandates for Direct Debits. The mandate does not have an

amount printed on it. The mandate is A4 size and the upper half can be used by the

Merchant to print a text to inform its Consumer. On the forms the identification of the

Merchant is pre-printed as is its address. The address of the Merchant should also be pre-


printed. If this information is not available, the Consumer has to be informed to fill in its

address. In a separate line the Consumer is instructed to send the mandate (original and

copy 1) to the Bank or to the Merchant. The mandate informs the Consumer of its right to

reverse the payment within 56 days.


Notification is not mandatory. In case of varying amounts or periods it is advised to notify

the Consumer as this will reduce the number of reversals.


The Consumer can revoke the debit to his account within 30 calendar days after the debit

has taken place. The Consumer has to sign and return the debit advice to his Bank.










Local Bank credits account of GlobalCollect 0 5



11.4 Germany (DE)


GlobalCollect is licensed by the German Bank to participate in the Direct Debit process.

GlobalCollect has obtained this license for its Merchants.











There are no standardized forms. The mandate has to contain a number of prescribed

fields, these being:



reason of debiting;


account number and Bank sort code (=Bankleitzahl) of the Consumer.




The amount does not have to be printed in case of a continuous Direct Debit. The

mandate should also contain a text to explain to the Consumer how the Direct Debit

process is structured and which rights the Consumer has.





In Germany, Banks send their clients not only a weekly or monthly Bank statement, but

they also send a “final statement”. This “final statement” is typically sent once a quarter, a

very small subset of Banks sends it once a year. The purpose of this final statement is to

end all opportunities for Consumers to object to withdrawals from their account.

Objections to specific withdrawals can be raised until 6 weeks (42 calendar days) after

the debit appeared on the final statement.













11.5 Spain (ES)


GlobalCollect is licensed by the Spanish Bank to participate in the Direct Debit process.












There are no standardized forms. However, the mandate has to contain a number of

prescribed fields:



reason of debiting;

account number of the Consumer.








The Consumer‟s Bank does not keep any mandates on file and the Bank will allow the

Consumer a period of 56 calendar days after the debit took place to revoke a

transaction for which a mandate was given. For transactions where no mandate was

given, the Consumer has 13 months after the debit took place to revoke it.













11.6 France (FR)


The Merchant has to obtain its own national Direct Debit issuer number ("Numéro National

d'Emetteur - NNE") from the Banque de France via a financial institution subject to French

Banking law and submit the Direct Debit instructions through a Bank registered with a

French Automated Clearing House.


A local bank account is required in France.


The Direct Debit request (Demandé de Prélèvement) is retained by the Merchant. The

Direct Debit authorization (Authorisation de Prélèvement) should be sent to the

Consumer's Bank, which retains it.

Should GlobalCollect receive information regarding the change or cancellation of a

mandate, this information will be forwarded to the Merchant. The Merchant should then

take the appropriate action.

The mandates have to be ordered with the Bank the Merchant has the local bank. These

mandates can be divided into two parts.

a "Demande de Prélèvement" (Direct Debit request) to allow the Merchant to

issue Direct Debit instructions. This part is retained by the Merchant.

an "Authorisation de Prélèvements" (Direct Debit authorization) to authorize the

Consumer's Bank to debit all Direct Debit instructions issued by the Merchant

without time limits or predetermined amounts. The Merchant must send this part to

the Consumer's Bank, which retains it.


Together with this signed mandate, the Consumer sends to the Merchant a "Relevé

d'Identité Bancaire (RIB)". This is a French identification document for the Consumer's

account and enables the Merchant to ascertain the domiciliary address of the

Consumer's Bank.


Banks have standardized mandates for Direct Debits. The layout of the mandates has to

be conform the examples given by the Banks. The "Numéro National d'Emetteur" must be

stated on the mandate. (printed or written).










collection date delivered in the input file. If the collection date in the input file has

passed, the file will be rejected. GlobalCollect requires a period of one business day to

process the file.

The Direct Debit instruction is sent to the Merchant's Bank (GlobalCollect requires a period

of one business day to process the file, before transmitting it to the Bank). The Merchant‟s

Bank issues the instructions and the Consumer's Bank processes these after checking the

Consumer's mandate.

Exchange and settlement between the Merchant's Bank and the Consumer's Bank are

executed via the "SIT" (Système Interbancaire de Télécompensation), the domestic

automated clearing and settlement system, and through both Bank's accounts at the

Banque de France. All Direct Debits are settled on the collection date, provided that

each Direct Debit instruction is issued by the Merchant's Bank five Banking days before its

collection date.








11.7 Great Britain (GB)


The Merchant has to be licensed by „the Direct Debit scheme‟ in order to collect by

Direct Debit in the UK. The license is given by the Banks or building societies and can be

obtained with or without the help of GlobalCollect. In case of the latter, the Merchant

has to indemnify the Bank for any loses or claims related to the Direct Debit process. The

Bank will also require proof of the Merchant of financial soundness. GlobalCollect can

indemnify the Bank on behalf of the Merchant. This gives small companies or companies

that are not yet active on the UK market the possibility to collect payments through Direct

Debit.



The Merchant is given a separate account and an “Originator Identification Number”

(OIN). If the Merchant has the license in its own name, the account will bear its name as

well. GlobalCollect will have to be given the authority to operate the account in name of

the Merchant. All statements and reports will be sent to GlobalCollect and solely

GlobalCollect will operate the account. If GlobalCollect indemnifies the Bank on behalf

of the Merchant, the account will be named: “Global Collect BV re <Merchant name>”.

(Global Collect BV is the legal name of GlobalCollect). This name will be shown on the

account statement of the Consumer.


The Merchant registers the mandates in its database. The original mandates are sent to

the Banks and building societies of the Consumers. GlobalCollect does not register the

mandates.

The Merchant is also required to register the „status‟ of the Direct Debit, i.e.: the first Direct

Debit, the n-th Direct Debit, representation or final Direct Debit. In the file sent to

GlobalCollect and forwarded to BACS this status is communicated.

Procedure:

The mandate, with the license number or Originator Identification Number printed

on it, is sent to the Consumers.

The mandate has to be filled in by the Consumer (the account number of the

Consumer) and signed.

The mandate is returned to the Merchant directly or through GlobalCollect.

The Merchant updates its database with the new Direct Debit Consumer.

The original mandate is forwarded to the Bank or building society of the

Consumer.

The Banks use the mandate to verify whether a Direct Debit has been authorized

by the account holder (the Consumer of the Merchant).

It should be noted that besides the traditional way of lodging the mandate (by sending

the paper form to the paying banks), a merchant may want to use the AUDDIS service.

The AUDDIS service is explained in detail in Appendix A.


The mandates have to be printed with the OIN. This number is given as soon as the Bank

or building society of the Merchant or GlobalCollect approves the mandate. The

mandates can be printed in several sizes. The layout of these mandates has to be

conform the examples given by the Banks. If the layout of the mandate is changed

without prior approval of the Bank, the Banks or building societies of the debtors may

refuse the Direct Debit. To prevent fraud, the Banks and building societies are very strict in

adhering to the rules.

The reference number on the mandate has to be the same number that is submitted in

the electronic file to GlobalCollect (authorization number). This number serves as a check

to verify the correctness of the Direct Debit. Should GlobalCollect receive information

regarding the change or cancellation of a mandate, this information will be forwarded to

the Merchant. The Merchant should then take the appropriate action.

Additionally:

A mandate must always be written in English; bilingual instructions are permitted.

A mandate cannot contain a fixed amount or date.

The mandate wording cannot be varied or added to by the Merchant except in

the originator‟s official use box.


It is not allowed to use a mandate which has payment details written on adhesive

labels or where any means of correction on the mandate has been made.


The Consumer should be notified of a Direct Debit no less than 10 days prior to the Direct

Debit. This notification can be „eliminated‟ by notifying the Consumer before the first

debit of the periodicity of the Direct Debit. If the amount of the Direct Debit changes, the

Consumer has to be notified.


Should debits have taken place without a signed mandate being in place, the Consumer

has the right to reverse all previous payments without any time limitations. Otherwise the

Consumer has 5 calendar days to reverse the debit.

11.7.7 Indemnity claims

Paying Banks (Bank of the Consumer who was debited) will refund the Payer (Consumer)

in case of an error by the Originator (Merchant). The Consumer for example can go to his

/ her Bank and tell that the amount was debited from the account by mistake, without

instruction, on the wrong date, etc, etc.

Under the terms of the Direct Debit Guarantee, the Paying Banks will accept the word of

the Payer concerning an error made by an Originator and will make an immediate

refund of the amount collected. The Paying Bank uses the Indemnity Claim process to

recover the refunded payment from the Originator. This involves sending a completed

Indemnity Claim form (example available at GlobalCollect) detailing the reason for the

claim and the amount claimed.

Under the Terms of their Direct Debit Scheme membership, the Originator must settle the

claim within 14 working days, even if liability for the error is disputed.

A valid Indemnity Claim must meet one of the following criteria:

1. The amount and / or date of the Direct Debit differs from the Advance Notice

issued to the Payer by the Originator

2. No Advance Notice was received by the Payer or the amount quoted is disputed

by the Payer

3. Direct Debit Instruction (DDI) cancellation by the Paying Bank

4. Where the Payer has cancelled the DDI direct with the Originator, notwithstanding

the fact that the Payer may not have cancelled the DDI with the Bank

5. No Instruction held. Payer disputes having given authority

6. Signature on DDI is fraudulent

7. Originator name disputed. This is where the Paying Bank is unable to identify and

consequently action a Payer‟s request to cancel a DDI as a result of the Originator

using one of the set-up exceptions in respect of trading names or facilities

management

NB: Where an Originator has made an error which does not fall within the valid Indemnity

Claim criteria, this will be referred to the Direct Debit Scheme Steering Group, which will

determine liability and give its authority for an Indemnity Claim to be raised.

If the Originator disagrees as to the validity of the Indemnity Claim he has the right to

make a Counter Claim under certain conditions. The Indemnity Claim should be settled

anyway.


Procedure followed by GlobalCollect:

The Indemnity Claim will be sent to the Originator. In this case this will be

GlobalCollect. Because GlobalCollect (and not the Merchant) owns the Bank

accounts involved, the Claims should be sent directly to the Bank of

GlobalCollect.

The Bank of GlobalCollect will take care that the amount will be debited from the

account involved.

GlobalCollect will then report the debited item to the Merchant and will charge

the Merchant accordingly.



collection date delivered in the input file. If the collection date in the input file has

passed, the file will be rejected. GlobalCollect requires a period of one business day to

process the file.

After the Banks and building societies have received the mandates a period of 14 days is

used to lodge the mandates. This means that only 14 days after the reception of the

mandates by the Banks the first Direct Debit can by processed.

Collection schedule for a first time transaction: Action Collection Day Cumulative

Mandate sent to Banks and building societies -15 1







Collection schedule for a subsequent transactions: Action Collection Day Cumulative







11.8 Italy (IT)


The Merchant will have to be licensed by the Italian Banking system. Together with

GlobalCollect the Merchant can obtain this license and will be given a Direct Debit

identification name.


A local bank account is required in Italy.


The mandates have to be ordered with the Bank with which the local bank account is

opened. The mandate consist of four copies. A copy is held by the Bank of the

Consumer, the Merchant, the Consumer and the Automated Clearing House.

Procedure:

The mandate is first filled by the Consumer, then forwarded to its Bank.


Within the Banking system, the mandate is lodged with the Consumer‟s Bank, the

ACH and the Bank of the Merchant.

The Consumer‟s Bank will print a Consumer reference on the mandate and

forward it to the Merchant‟s Bank

The Merchant receives its copy of the mandate from its Bank.

Each time the Merchant requests a Direct Debit of the account of the Consumer,

the Consumer reference given by the Consumer‟s Bank has to be included in the

request

Should GlobalCollect receive information regarding the change or cancellation of a

mandate, this information will be forwarded to the Merchant. The Merchant should then

take the appropriate action.


Banks have standardized mandates for Direct Debits. The mandate does not have an

amount printed on it and is in A4 size.


Notification is not mandatory, but in case of varying amounts or periods it is advised to

notify the Consumer. This will reduce the number of reversals.

















11.9 The Netherlands (NL)


GlobalCollect is licensed by the Dutch Bank to participate in the Direct Debit process.






The Merchant holds the mandates. Banks are entitled to require a copy of the mandates

if needed. Mandates may be kept on file using microfilm. Mandates have to be kept on

archive for at least five years after the expiry date or the last date on which the account

was debited. Should GlobalCollect receive information regarding the change or


cancellation of a mandate, this information will be forwarded to the Merchant. The

Merchant should then take the appropriate action.


Banks have standardized mandates for continuous Direct Debits. For one-off and time

limited Direct Debits are no standardized forms.

The mandate has to contain a number of prescribed fields:

name and address of Consumer;


reason of debiting;


account number of the Consumer;


signature of Consumer;

Furthermore, the Merchant has to inform the Consumer:

he/she has agreed to the Merchant by signing the mandate his/her account will

be Direct Debited for the amounts mentioned;

the mandate is valid until cancelled (in case of continuous Direct Debit);

to cancel the Direct Debit, the Consumer has to turn to the Merchant;

to reverse a Direct Debit, the Consumer has to turn to his/her Bank;

the moment of debiting and the period of time in which the debiting will occur.


Notification is not mandatory, but in case of varying amounts or periods it is advised to

notify the Consumer. This will reduce the number of reversals.


The following time frames apply for the revocation of a Direct Debit:

Recurring debits: 56 calendar days

Recurring B2B: 5 working days

Recurring gambling: No reversal possible

One-off debits: No reversal possible














12 Appendix A: Sample Mandates

12.1 Austria (AT)

Ermächtigung zum Einzug von Forderungen im Einzugsermächtigungsverfahren Hiermit ermächtige(n) ich/wir Sie, die von mir/uns zu entrichtenden Zahlungen bei Fälligkeit zu Lasten meines/unseres Kontos mittels Einzugsermächtigung einzuziehen. Damit ist auch meine/unsere kontoführende Bank ermächtigt, die Einzüge einzulösen, wobei für diese keine Verpflichtung zur Einlösung besteht, insbesondere dann, wenn mein/unser Konto die erforderliche Deckung nicht aufweist. Ich/Wir habe(n) das Recht, innerhalb von 42 Kalendertagen ab Abbuchungstag ohne Angabe von Gründen die Rückbuchung bei meiner/unserer Bank zu veranlassen. Arthur van der Putten ______________________________________________________________ Name und genaue Anschrift des Zahlungspflichtigen 55500643635 ______________________________________________________________ Konto-Nr. Zahlungspflichtigen Raiffeisen Zentral Bank Osterreich AG ______________________________________________________________ bei (genaue Bezeichnung der Kreditunternehmung) 31000 ______________________________________________________________ Bankleitzahl Abonnement Business Week ______________________________________________________________ Zahlungen wegen (Verpflichtungsgrund, ev. Betragsbegrenzung – gilt nicht gegenüber der durchführenden Banken) EUR 150,00 ______________________________________________________________ Betrag Vienna , 7 Mai 2001 ______________________________________________________________ Ort, Datum Unterschrift An (Zahlungsempfänger) GlobalCollect Attn.: Business Development P.O. Box 2001


12.2 Belgium (BE)

AVIS DE DOMICILIATION BERICHT VAN DOMICILIERING Le soussigné / Ondergetekende (au nom de qui les factures sont établies / op wiens naam de facturen worden opgesteld)

Nom / Naam: Ron Vollebregt Rue / Straat, No. / Nr: Rue de Example 1 Code postal, localité / B-1000 Bruxelles Postnr, localiteit:

Prie la firme/ Verzoekt de firma (qui établit les factures / die de facturen opstelt)

Nom / Naam: GlobalCollect Rue / Straat, No. / Nr: Polarisavenue 17 Code postal, localité / 2130 GE Hoofddorp Postnr, localiteit: Pays-Bas

D’encaisser à partir de ce jour et jusqu’à révocation expresse toutes factures / Om vanaf heden en tot uitdrukkelijke herroeping, al de facturen

Référence ou No d’abonné / referte of abonneenummer ABO2001Telegroup

Auprés de l’institution financière / te incasseren bij de financiële instelling

Nom / Naam: GlobalCollect Rue / Straat, No. / Nr: Polarisavenue 17 Code postal, localité / 2130 GE Hoofddorp Postnr, localiteit: Pays-Bas

Par le débit du compte No. /

door het debet van rekening nr. 2 1 0 --- 0 0 7 9 5 3 0 --- 4 2

Le titulaire du compte/ op naam – van de ondergetekende

Nom / Naam: Ron Vollebregt Rue / Straat, No. / Nr: Rue de Example 1 Code postal, localité / B-1000 Bruxelles Postnr, localiteit

Localité / plaats: Bruxelles Pour accord, le titulaire du compte/ Voor akoord, de rekeninghouder (*),

Date/ Datum: 7 mei 2001 Signature/Handtekening:

RESERVE A LA BANQUE / VOORBEHOUDEN VOOR DE DOMICILIE-INSTELLING

La domiciliation mentionné ci-dessous a été acceptée sous le numéro: De hierboven vermelde domiciliëring werd aanvaard onder nummer:

Date / Datum: Cachet et signature Stempel en handtekening

NUMERO DE DOMICILIATION DOMICILIERINGSNUMMER

- -

Numéro d’identification du créancier

Identificatienummer van schuldeiser


12.3 Switzerland (CH)


12.4 Germany (DE)

Ermächtigung zum Einzug von Forderungen mittels Lastschriften

Hiermit ermächtige(n) ich/wir, die von mir/uns zu entrichtenden Zahlungen bei Fälligkeit zu Lasten meines/unseres Kontos mittels Lastschrift einzuziehen. Wenn mein/unser Konto die erforderliche Deckung nicht aufweist, besteht seitens des kontoführenden Kreditinstituts keine Verpflichtung zur Einlösung. Teileinlösungen werden im Lastschriftverfahren nicht vorgenommen.

Name und genaue Anschrift des Zahlungspflichtigen

Ronald van Keulen___________________________________

Musterstrasse1______________________________________

D-5200 Muster______________________________________ Konto-Nr des Zahlungspflichtigen 7017361___________________________________________ Name der Bank Westdeutsche_LandesBank____________________________ Bankleitzahl 37050000______ ____________________________________

Gesamtbetrag EUR 100,00________________________________________ An (Zahlungsempfänger)

GlobalCollect

_____________________________________________

attn.: Business Development

_____________________________________________

P.O. Box 2001

_____________________________________________

2130 GE Hoofddorp

Ort, Datum : Koeln, 7 Mai 2004 Unterschrift:


12.5 Spain (ES)


12.6 France (FR)


12.7 Great Britain (GB)


12.8 Italy (IT)


12.9 The Netherlands (NL)

Eenmalige Machtiging Ondergetekende verleent hierbij machtiging aan GlobalCollect om van zijn/haar ondergenoemde (giro-) rekening éénmalig een bedrag af te schrijven:

Bedrag : EUR 100,00 ---------------------------------- Bankrekeningnummer : 440339464 --------------------- Girorekening : -------------------------

Naam en voorletters : Enri Meijers --------------------------------------------------------------------

Adres : Voorbeeldstraat 1 ------------------------------------------------------------

Postcode en plaats : 2000 BV Voorbeeldstad --------------------------------------------------- Datum : 7 mei 2004 -------------------- Handtekening : -------------------------- Na ondertekening dit formulier sturen naar: GlobalCollect t.a.v.: Business Development Postbus 2001 2130 GE Hoofddorp Nederland


13 Appendix C: Refusals and Reversal Reasons

The codes in the following table are used both as refusal reason and as reversal reason.

But there is a significant difference between these two types of rejections:

A refusal occurs on a Direct Debit payment when it is sent to the bank or clearing

house and is immediately refused. The payment amount will not be credited to

the GlobalCollect bank account and therefore will not be remitted to the

Merchant.

A reversal occurs on a Direct Debit payment when it is rejected by the (debtor's)

bank or by the customer/debtor after the payment has been credited to the

GlobalCollect bank account and therefore will be remitted to the Merchant.

When the reversal is received the GlobalCollect bank account will be debited.

GlobalCollect will then settle this amount.

13.1 Customer reversed

ID Type Description Additional information on refusal/reversal reasons

08 DD Direct debit disputed Direct Debit payment reversed on request of account holder.

65 DD Refund on request of customer Direct Debit has been refunded on the initiative of consumer.

13.2 Not Customer Reversed

ID Type Description Additional information on refusal/reversal reasons

01 DD Invalid account-identification Account id is not formatted according to country specific format requirements OR account does not exist (anymore).

02 DD Invalid debit bank identification Bank id or branch id (of debit-bank) is not formatted according to country specific format requirements OR bank (branch) does not exist (anymore) OR bank (branch) cannot process Direct Debit.

03 DD Invalid account type Debit account exists but is not suited for Direct Debit. Debtor has to issue a new authorization on a suitable account.

04 DD Blocked or closed account Debit account is (temporarily) blocked for Direct Debit.

05 DD Authorization missing No valid authorization present at debit bank.

06 DD Authorization cancelled Authorization withdrawn

07 DD Insufficient funds Direct Debit payment not processed because of insufficient funds. (Special cases)

09 DD Refused by bank Direct Debit payment rejected by bank (without further specification). (Can be retried)

10 DD Name/number do not match The account number and name accountholder do not match (combination checked by some banks).

Business Guide - Direct Debit v2.0

Documents

nom naam

rue straat

localit postnr

global collect

direct debit

direct debit

direct debit

continuous