Direct Debits

Direct debits in Atlar allow you to pull funds from external accounts. A direct debit is an instruction to pull funds from a source account to your own account. To initiate a direct debit, there must be a valid mandate. A Mandate is a concept in the Atlar platform that holds information about the authorization granted by a legal entity (such as a company or individual) that allows you to collect funds from their account.

The Direct Debits tab provides an overview of all direct debit payments initiated through the Atlar platform. You can:

• Filter by date, currency, counterparty, remittance information, and more
• Modify the table view by clicking the cogwheel in the top-right corner

Direct debit details

Double-click a direct debit transaction to view detailed information, including:

• Details – General payment info such as payment ID, source account, counterparty, payment scheme, and more
• Metadata – Custom fields for tagging or categorizing the payment
• Counterparty – The payer from whom funds are collected
• Attached transaction – The reconciled transaction on your account statement
• Approval chains – Who approved the payment and in what order
• Audit trail – Timeline of payment creation and approval events
• Connection instruction – Details of the instructions pushed to the third party, e.g. a bank

Creating a direct debit

Once your third-party connection and relevant payment scheme(s) are live, you can begin initiating real direct debits in Atlar. Start with a penny test to verify everything is functioning correctly before proceeding to full operations.

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What are penny tests?

Penny tests (also known as penny transfers) are small-value payment tests — typically a very low amount (like €0.01 or €1.00) — used to verify that:

1. Bank connections are working correctly
2. Funds are successfully sent and received
3. Payment scheme configuration is correct
4. Reference information and reconciliation behave as expected

Prerequisites

Ensure you have the following:

• A valid mandate from the external account holder. Learn more about creating a mandate.
• The external account details (e.g. IBAN, sort code, account number).
• A connected bank account that supports direct debits.

Steps to create a direct debit

1. Go to Payments > Direct Debits
2. In the top-right, click Actions > Create
3. Fill in the required details:
   1. From – Select the counterparty (typically a customer) you want to pull funds from
   2. To – Select one of your accounts to receive the funds
   3. Direct debit type – Choose the appropriate payment scheme
   4. Set the amount, currency, and collection date
4. (Optional) Add a metadata key to tag or categorize the payment
5. (Optional) Use advanced options:
   1. Set a category purpose code if needed
6. Click Continue to review the payment
7. Review the information and click Create
8. The direct debit will now be created and ready for approval (if approval chains are enabled)

Approving a direct debit

1. Navigate to Approvals > Pending > Direct Debits
2. Select one or more payments to approve
3. Click Approve

Depending on your organization’s setup, the person who created the payment may not be allowed to approve it. If you don't have access, contact your organization owner or Delivery Manager.

Monitoring Payment Statuses

Once approved, direct debits are visible under Payments > Direct Debits with status indicators:

• Accepted – The bank has accepted the payment
• Executed – The bank has processed the payment

For a full list of statuses, see payment statuses.