There is also a second option for the business customer sector, the Business Direct Debit (BDD). BDD does not permit any objection and is an appropriate procedure for business models conducted according to the delivery-versus-payment principle.

LSV Payment - LSV+ and BDD Solutions

Q: LSV+

LSV+ is the direct debit procedure with right of objection. In LSV+ the debtor can object to a payment made at his/her financial institution – without having to provide a reason for doing so – up to 30 days after notice of the debit to the account has been given.

Current LSV+/BDD Direct Debits Will Be Discontinued on 30 September 2028.

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Handling of Regularly Occurring Claims

LSV+ and BDD are Swiss direct debit procedures that can be used to settle regular receivables in Swiss francs and euros. Once set up, the account is debited automatically for services purchased. With LSV+ there is a right of objection, whereas BDD exists in the corporate customer business and does not offer a right of objection.

Direct Debit Procedures LSV⁺ and BDD for Financial Institutions

LSV⁺ and BDD are attractive direct debit procedures offered by the Swiss banks for the handling of regularly occurring claims in francs and euro. They combine the best-possible consumer protection with efficient and secure processes, which minimize risks and costs for banks, debtors and creditors.

The legal basis for the direct debit procedures is formed by the participation conditions and debit authorizations. The participation conditions regulate the handling of instructions between the creditor and his/her bank. The debit authorization documents the legal relationship between the creditor, his/her financial institution and the debtor as well as that between the debtor and his/her bank. The debtor's bank is only permitted to pay the amount claimed if there is a valid debit authorization from the debtor.

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The Two Procedures

LSV+ Direct debit (BDD)

Direct Debits for Companies

LSV⁺ and BDD are attractive direct debit procedures offered by the Swiss banks for the handling of regularly occurring claims in francs and euro

They combine the best-possible consumer protection with efficient and secure processes, which minimize risks and costs for both the debtor and creditor. Companies can efficiently manage their liquidity with direct debits. Special features include incoming payments according to value date and a significantly simplified dunning process.

The creditor can choose to collect direct debits in two different ways:

with LSV+ (direct debits with right to objection) or
with BDD (direct debits without right to objection).

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LSV⁺ – Direct debits with right of objection

LSV⁺ is the process offered by the Swiss banks for the processing of direct debits with right of objection. It is suitable for companies that regularly collect amounts in francs or euro and which seek to offer their customers a simple and mode of payment.

LSV⁺ is used for both company and private customer business sectors and offers the best possible consumer protection through the right of objection.

A debit authorization from the debtor forms the basis for the collection of direct debits, along with a bank account for both parties, the debtor and the creditor. The creditor submits the direct debit electronically through an interface (such as e-banking) at his financial institution or to SIX Interbank Clearing (via payCOMweb or file transfer).

The collected bill sent will be left open in the creditor's accounts receivable until the direct debit is paid. Reconciliation occurs automatically upon receipt of the incoming payment on the basis of the reference number provided in the direct debit.

In LSV+ the debtor can object to a payment made at his/her financial institution – without having to provide a reason for doing so – up to 30 calendar days after notice of the debit to the account has been given. Such objections, however, arise rarely due to the close relationship of trust that generally exists between debtors and creditors.

Reference Number

Each transaction must contain an unambiguous reference number to ensure that the incoming payment can be allocated to the proper open entries in the account receivables. The file structure and the data fields of the transactions are described in the Section E "technical provisions" of the LSV+/BDD handbook for billers.

Order and Support

Would you like more information? Please contact your financial institution.

Further Information

BDD – Direct debits without right of objection

BDD (Business Direct Debit) is the process offered by the Swiss banks for the processing of direct debits without right of objection. It is suitable for companies that predominantly collect large amounts in francs or euro in the business customer sector. The business model here is generally based on the delivery-verses-payment principle.

A debit authorization from the debtor forms the basis for the collection of direct debits, along with a bank account for both parties, the debtor and the creditor. The creditor submits the direct debit electronically through an interface (such as e-banking) to his financial institution or to SIX Interbank Clearing (via payCOMweb or file transfer).

The collected bill sent will be left open in the creditor's accounts receivable until the direct debit is paid. Reconciliation occurs automatically upon receipt of the incoming payment on the basis of the reference number provided in the direct debit.

Reference Number

Each transaction must contain an unambiguous reference number to ensure that the incoming payment can be allocated to the proper open entries in the account receivables. The file structure and the data fields of the transactions are described in the Section E "technical provisions" of the LSV+/BDD Handbook for billers.

Order and Support

Would you like more information? Please contact your financial institution.

Further Information

Data Transfer via Paycomweb

payCOMweb is an Internet-based solution for the transmission of direct debits (LSV⁺/BDD). It is the electronic interface for the automated exchange of data between your finance software and SIX.

With payCOMweb you can securely, rapidly and efficiently transmit data around the clock, seven days a week.

How It Works, Access with Certificate and Ordering

Order Login payCOMweb How Does It Work? Access with Certificate Prices

Forms for Completing/Saving on Your PC and Subsequent Printing

Initial Order

Register/order

With the registration form you can

register your company for payCOMweb,
request payCOMweb approval rights for LSV+/BDD.

Modifications

Modifications

With the modifications form you can

register new users with access to new or existing mailboxes
issue or rescind user access to mailboxes
delete users and/or mailboxes
delete payCOMweb approval rights.

Registration for Electronic Approval

Electronic approval of LSV+/BDD

Required for the electronic approval of order is registration for the payCOMweb service by means of of the registration form (see the above chapter initial order).

PayCOMweb login

How Does It Work?

The ordering party logs in with the certificate into the payCOMweb application and transmits the locally saved files though the Web browser with SSL encryption. He/she then receives an electronic confirmation of receipt.

payCOMweb offers the option of electronic approval by the ordering party. Alternatively, the approval can also be made by the ordering party’s house bank, if the ordering party has sent the credit or debit order on paper.

The payment approval is made upon verification of the payment data. The ordering party can call up, save and print out the processing confirmation at any time.

The creditor’s financial institution of account, i.e. the ordering party, as well as that of the debtor will be notified about the incoming payment, whereby the debtor banks checks whether the requirements (e.g. authorization, credit-worthiness) are sufficient to execute the payment.

If the payments are approved by the respective financial institution, payCOMweb then processes the order and carries out the corresponding credits and/or debits upon the customers’ accounts through the financial institutions.

Access to the payCOMweb application takes place via a web browser and is secured by a certificate or SwissID issued by third-party providers.

The two following authentication methods are recommended:

SwissID

The operator can register for SwissID free of charge here: www.swissID.ch:

Create an account on www.swissID.ch
Download the SwissID app
Perform an online identity check with the SwissID app

DigiCert® Document Signing Service

We accept DigiCert Document Signing Service Individual Account and DigiCert Document Signing Service Enterprise Account. In both cases, ‘Client authentication certificate’ must be selected, only authentication certificates can be used for the login.

Order form

The service payCOMweb is free of charge until further notice. Certificates can be acquired separately and there might be additional charges from the manufacturer.

Resources

Downloads Finanzinstitute Support payCOMweb FAQ Download Bankenstamm Inquiry IID Downloads payCOMweb

LSV+/BDD Handbuch für Rechnungssteller

Nachfolgende Dokumente sind passwortgeschützt (Member Section von eBill & Direct Debit (LSV)).

LSV⁺/BDD – Handbuch für Finanzinstitute

The following documents are password-protected (Member Section of eBill & Direct Debit (LSV)).

Registration does not work

Support by SwissSign (Swiss Post)
Support by QuoVadis

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You were able to transmit the file but receive no details of its status

Any data transmitted using payCOMweb between 6 pm and approx. 7 pm Mondays to Fridays, between 12 noon on Saturdays to 5 pm on Sundays and on public holidays are not validated. This is the reason why a status is not sent to senders during these times and why it is also not possible to approve the transmitted orders.

Cash Management, Transaction Costs, Transaction Currencies

What impact do the direct debit procedures have on my liquidity management?

The LSV+ payments that you receive as a creditor are final and are only carried out if the debtors have sufficient coverage in their accounts and if there are valid direct debit authorizations on hand. You can access the funds as soon as they arrive if no objection is received on time. However, objections by creditors are rare. Based on experience, only approximately 0.5% of the debits are contested.

BDD payments that you receive as a creditor are final and only checked for sufficient debtor account coverage and a valid direct debit authorization. You have unlimited access to the funds as soon as they arrive, because with this procedure there is no right of objection.

As the creditor, can I count on receiving my funds on time? What transaction prices will be charged by the debtor’s bank? For which currencies can I use the direct debit procedures, and in which countries?

You can make transactions in LSV+ and BDD in francs and euro. LSV+and BDD were primarily developed for the Swiss market, but can also be used by banks, debtors or creditors in other countries. To use LSV+ and BDD, the respective banks must participate in the Swiss payment systems SIC and/or euroSIC. However, there is no direct interoperability with the direct debit systems of other countries.

Can I use the direct debit procedure to settle payments with customers within the EU zone in euro?

Though LSV+ and BDD were primarily developed for the Swiss market, they can also be used by banks, debtors or creditors in other countries. To do so, the respective banks must be direct participants in the payment systems SIC and/or euroSIC. However, there is no ability to directly communicate with the direct debit systems of other countries.

Organizational and Contractual Issues

As the creditor, how much time should I plan for sending reminders? What effects does the direct debit procedure have on my accounting? How must the dispatch of bills be organized? What manual procedures do I need to complete as a direct debit procedure participant?

Basically, all processes can be handled automatically as long as:
LSV+: the debtor's bank account has sufficient coverage, there is a direct debit authorization, the account data is correct and there is no objection by the creditor;
BDD: the debtor’s bank account has sufficient coverage, there is a direct debit authorization and the account data is correct.

Objection

Which direct debit procedure provides the right of objection? Should I expect objections to be raised often with LSV+?

Alternatives to the Direct Debit Procedure

As a creditor, what alternatives do I have should I prefer not to accept the direct debit procedure LSV+ with the right of objection? Which alternative payment methods should I recommend to my debtors if they prefer not use the direct debit procedure?

Download Bank Master

The Bank Master in ASCII or Excel format is an extract of the daily updated Swiss Bank Master.

The file is ideal for updating existing bank master data in software programs relating to IIDs in credit, debit, and general payment traffic applications.

The file may be downloaded either in text (ASCII) or in Excel format. The text file contains capital and lower case letters, umlaut and special characters. Each entry consists of a record with fixed-length field, ending with carriage return and linefeed (CR/LF). The records are sorted in ascending order according to IIDs (cf. record description). The contents of the two files are the same. The text file shows a separate title line.

As an alternative to the Bank Master the Electronic Index is at disposal as a reference in the form of an offline inquiry.

Records description Bank Master data structure in ASCII and Excel

Inquiry IID

The Inquiry IID is an online search for master data of financial institutions as Swiss payment traffic participants.

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Download Center for Forms

Data transfer via payCOMweb

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