Direct Debits 🆕

Direct Debits

What are Direct Debits?

Currently Lemonway handles Direct Debits where the EU Member state uses the euro as their official currency. These payments are known as SEPA (Single Euro Payments Area) Direct Debits.

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Lemonway does not process Non-EU SEPA country payments. This includes payments from the United Kingdom, Norway, Iceland, and Switzerland.

Direct Debit payments can only be submitted in euros (EUR) from accounts located in the SEPA zone (Single Euro Payments Area). They are rarely used for a one-off payment, more commonly, they are used for recurring payments.

SEPA ZoneSEPA Zone

Map source: https://www.ecb.europa.eu/paym/integration/retail/sepa/html/index.en.html

Why use Direct Debit?

  • It is easy to manage recurring payments for example subscriptions, loan repayments and charitable donations.
  • Payment initiated by the payee (vs. payer-initiated payment for example bank transfer), allowing better control of your receivables and easier cash flow forecasting.
  • Simplification of the customer journey as once the payer has signed the SDD mandate, no further action is required
  • Improved retention rate versus card rebilling where expiry dates and spending limits should be considered

Lemonway SDD Core vs SDD B2B

SDD core is setup and designed for individuals and businesses. SDD Business-to-Business (B2B) specifically for businesses.

For both SDD the debtor needs to sign the mandate and to agree the terms and conditions. For SDD core the creditor is responsible save the mandate, and for SDD B2B the mandate has to be provided to their bank prior the first DD.

In both schemes, Lemonway issues direct debit orders and submits them for debiting of the payer’s account with his/her prior approval - the mandate.

Direct Debit using Yousign from start to finish:

  1. You need to identify the following information from your user:

    • BIC
    • IBAN
  2. Use the Register a SDD Mandate method POST /moneyins/sdd/mandate ensuring that you have entered the mandatory fields.

    Example POST:

    {
      "wallet": "5d2c8eb958359",
      "holder": "Tony MALONE",
      "bic": "ABCDEFGHIJK",
      "iban": "FR1420041010050500013M02606",
      "isB2B": false,
      "isRecurring": true,
      "street": "26 Rue de Paris",
      "postCode": "75008",
      "city": "Paris",
      "country": "FRANCE",
      "mandateLanguage": "fr",
      "rum": "812676"
    }
    

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If you do not specify a RUM (Référence Unique du Mandat) Lemonway will create a unique one for the Mandate.

  1. Lemonway's API sends back the following information:

    • SDD mandate ID
    • Status 0 (Pending). This is visible in the Lemonway Dashboard.
    • Unique Mandate Reference

    Example Response:

    {
      "SSDMandate": {
    "id": 270,
    "status": 0,
    "UniqueMandateReference": "812226"
      }
    }
    

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Mandate Status Types

0 = Pending validation
5 = Validated, First SDD to be done
6 = Enabled
8 = Disabled
9 = Rejected

  1. For Lemonway to deposit funds in your desired wallet and the bank to transfer the funds, your client is required to sign an SDD Mandate. Use thePOST /accounts/{accountid}/documents/{documentid}/signinit method to create an online document for them to sign. Ensure that you include the mandate Id (displayed as documentid) in the request body. This is the id that was returned when you originally registered the mandate.

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Important

In the POST request ensure that your client's mobile phone number is listed (if it has not been previously registered in the Dashboard). Direct debit mandates are authenticated. Your client will receive an SMS with a code to finalized the mandate.

Lemonway will send back a signDocument token for you to redirect the payer to a unique URL to verify the mandate details and sign. Use the following Webkit URL and replace YOURENVNAME with your existing production environment:

https://webkit.lemonway.fr/mb/YOURENVNAME/prod/?signingtoken=XXX

**Example of signDocument token response body:**

````json****
{
  "signDocument": "274095424CQJWjvZ00loAiIP5mtKq4g3fkvL"
}
````
  1. Lemonway redirects your user to the Yousign webpage to read and agree the terms and finally sign. At this stage the payer can:

    • Refuse the mandate by clicking REFUSE on the page.
    • Sign the mandate

    If the payer clicks SIGN an SMS with a security code will be automatically sent to the payer. The payer will then enter the code on the Yousign website and then electronically sign to finalize the mandate.

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Information

The default Yousign page is in English, however your client can change the website language using the right corner menu displayed on the site.

Example Mandate:

workflowworkflow

Example of a signed mandate:

workflowworkflow

Example of final page

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Note

The left section of the page displays the signee's full name, the date, and the time. On the right the signee can download the signed PDF.

workflowworkflow

  1. When the payee signs the mandate the Lemonway Dashboard status reflects the new status by automatically switching from Pending (0) to Enabled (6). You will also be able to view and download the mandate for your internal records.

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Recommendation

You can manage and generate your own mandates, however we recommend that you use the Lemonway procedure outlined in this document. Mandates are validated and enabled automatically using our method. If you upload a signed mandate document using the Dashboard or API, the process is manually verified by our KYC team, the process could be delayed. If you decide to upload your client's mandate, ensure that your use upload slot 21 SDD mandate in the Dashboard or API.

  1. Once the mandate is enabled you can use the POST /moneyins/sdd/init method to request a Direct Debit (if the wallet status allows the request).

Direct Debit using Lemonway Opt-In from start to finish:

  1. You will need to identify the following information from your user:

    • BIC
    • IBAN

    There should be a section on your website with stated legal terms and conditions specifying that they agree to accept the Direct Debit with your organization.

  2. You then use the Register a SDD Mandate method POST /moneyins/sdd/mandate ensuring that you have entered the mandatory fields.

    Example POST:

    {
      "wallet": "5d2c8eb958359",
      "holder": "Tony MALONE",
      "bic": "ABCDEFGHIJK",
      "iban": "FR1420041010050500013M02606",
      "isB2B": false,
      "isRecurring": true,
      "street": "26 Rue de Paris",
      "postCode": "75008",
      "city": "Paris",
      "country": "FRANCE",
      "mandateLanguage": "fr",
      "rum": "812676"
    }
    

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RUM Reference

If you do not specify a RUM (Référence Unique du Mandat) Lemonway will create a unique one for the Mandate.

  1. Lemonway will generate a signed mandate PDF (HolderName_MandateId_Date_Time) and stores it. It is associated to the dedicated Mandate Id.

Associated Direct Kit Error Codes

Direct Error CodesDescription
244SDD mandate not found
245SDD mandate invalid
246SDD mandate currently already in use for a direct debit
258Already document associated to this mandate

Methods Associated with Direct Debits

  • List Money-In by SDD
  • Get Mandate Document
  • Deactivate SDD Mandate
  • Register SDD Mandate
  • Request an SDD
  • Upload KYC Documentation

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