Direct Debits

Collect funds from external accounts. Direct debits allow you to pull funds from a payer’s account into your own. To initiate a direct debit, a valid Mandate is required. A Mandate stores the authorization granted by a company or individual, enabling 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
• Customize 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 direct debits.

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Tip: Start with a penny test to ensure everything is functioning correctly before processing live transactions.

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What are penny tests? Penny tests (also called penny transfers) are small-value payments—typically €0.01 or €1.00—used to confirm 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

Before creating a direct debit, ensure you have:

• 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:
   • From – Select the counterparty (customer) you want to pull funds from.
   • To – Select one of your accounts to receive the funds.
   • Direct debit type – Choose the appropriate payment scheme.
   • Set the amount, currency, and collection date.
4. (Optional) Add a metadata key to tag or categorize the payment.
5. (Optional) Use advanced options:
   • Set a category purpose code if required.
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 your organization uses approval chains.

Approving a Direct Debit

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

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Warning: Depending on your organization’s setup, the person who created the payment may not be allowed to approve it. If you lack 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.

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For a full list of possible statuses and their meanings, see Payment Statuses.