GLOSSARY

Direct debit

What is a direct debit?

Direct debit is a secure and convenient pull payment method that allows businesses and organisations to automatically collect agreed payments directly from a customer’s bank account, based on prior authorisation. It is commonly used for recurring payments such as subscriptions, insurance premiums, utilities, and memberships. By automating collections, direct debit helps reduce late or missed payments, improves cash flow, and lowers administrative effort for businesses while offering customers a hassle-free payment experience.

In Switzerland, direct debit is typically offered through schemes such as LSV+ (Lastschriftverfahren) and SEPA direct debit, depending on the bank and currency used.

What can direct debit do for my business?

Direct debit enables businesses to:

Collect recurring payments automatically and on time
Improve cash flow predictability
Reduce manual invoicing and reconciliation
Lower payment failure rates compared to manual transfers
Offer customers a convenient and trusted payment option

It is particularly well suited for subscription-based models, ongoing services, and long-term customer relationships.

How does direct debit work?

Customer authorisation: The customer authorises the business to collect payments by signing a direct debit mandate (paper or online).
Mandate registration: The mandate is registered with the bank or payment provider.
Payment collection: On the agreed dates, the business initiates the debit, and the funds are automatically transferred from the customer’s bank account.
Consumer protection: Customers are protected by refund and objection rights in case of incorrect or unauthorised debits, depending on the scheme used.

How does direct debit compare to other payment methods?

Compared to card payments or manual bank transfers, direct debit:

Is more reliable for recurring payments
Has lower failure rates
Reduces customer churn caused by expired cards
Requires less active involvement from the customer once set up

Unlike credit transfers, direct debit is initiated by the business, not the payer, making it ideal for recurring billing.

How can I access direct debit in Switzerland?

Businesses can access direct debit by:

Working directly with a Swiss bank offering LSV+ or SEPA direct debit
Using a payment service provider that supports Swiss direct debit schemes
Requirements typically include a Swiss bank account, business registration, and approval of mandate and risk checks.

Direct Debit in Switzerland and internationally

Direct debit schemes are governed by country-specific rules and are usually limited to domestic transactions.

An important exception is SEPA direct debit, which enables Euro-denominated direct debit payments across the Single Euro Payments Area (SEPA). Since its introduction, SEPA has made it possible for businesses to collect recurring payments both domestically and cross-border within Europe using a single, standardised scheme.

Automatic account funding via eBill (Switzerland)

With eBill, amnis offers a simple way in Switzerland to automatically top up your amnis account with funds. Amounts are debited directly from the linked bank account — based on the account balance or at regular intervals—ensuring that payments and card transactions always run smoothly.

Automated transactions

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ACH payment

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Balance of payments

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Bank transfer

A bank transfer refers to the electronic transfer of money from one bank account to another. Such transfers can take place either within the same bank or between different banks and are among the most commonly used methods worldwide for processing payments between individuals and companies.

BIC (Bank Identifier Code)

The Bank Identifier Code (BIC) is an internationally valid bank sort code defined by the Society for Worldwide Interbank Financial Telecommunication (SWIFT). Since the BIC code is issued by SWIFT, it is often also referred to as the SWIFT code.

Cashless payment

A cashless payment refers to any financial transaction where no physical cash is exchanged. Instead, the payment is processed using digital or electronic methods such as bank transfers, payment cards, mobile apps, or online platforms. It allows money to move from one account to another without the need for coins or banknotes.

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About amnis

amnis offers a comprehensive platform for international banking, offering a range of tools in one place. Transfer money abroad, exchange currencies 24/7 and collect international money transfer with your own IBAN accounts supporting 20+ currencies. Founded in 2014 in Zurich, amnis is a regulated payment institution under the supervision of the Banking Supervision Section in Liechtenstein (FMA) within the EEA.

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