Discontinuation of LSV+/BDD Direct Debit Procedures

Direct debit collections with LSV+/BDD can be submitted to the LSV+/BDD direct debit infrastructure up to and including the execution date of 30 September 2028 at the latest. LSV+/BDD direct debit collections with a later execution date will not be possible and LSV+/BDD submissions will no longer be accepted or will be rejected. Financial institutions can decide whether they wish to offer LSV+/BDD to their customers until then or to discontinue the service at an earlier date.

The LSV direct debit procedure was launched in 1977. The current LSV+/BDD direct debit procedures were introduced in 2005. In the meantime, the Swiss financial center has harmonized payment transactions and adapted them to the ISO 20022 payment standard. LSV+/BDD do not fully comply with this standard. However, the harmonization of payment standards is the basis for efficient and competitive Swiss payments in the future.

In the coming years, further investments in technology and formats would be required in order to meet today's customers needs and the Swiss regulator’s requirements for a modern direct debit solution. These investments would affect invoice issuers, software partners, financial institutions and SIX as the operator of the direct debit infrastructure.

In addition, the process for obtaining the debit authorization is based on the fact that the corresponding form must be physically signed and exchanged between the stakeholders involved. This is no longer in line with today's standards or with the digitalization strategy for payment transactions that the financial center wants to consistently promote for the benefit of all parties involved.

The LSV+/BDD transaction figures are also declining. This indicates that invoice issuers are increasingly turning to other invoicing methods.

For these reasons, SIX, in consultation with the bodies of the Swiss financial center, has decided to discontinue the development of LSV+/BDD as of 30 September 2028.

Invoice issuers can choose between already known and established alternative payment methods such as eBill, QR-bill, standing order or single payment order – depending on the individual offer of each financial institution.

Analog customers who do not use eBill or online banking can receive claims via QR-bill, for example – depending on the individual offer of each financial institution.

Invoice issuers need to decide which channels they want to use for their invoices in the future. They must then work with their respective financial institution to determine what adjustments are necessary and how the receivables processed via LSV+/BDD can be transferred to the new channel. This must be done by September 2028 at the latest.

In order to provide sufficient lead time for invoice issuers to make the necessary adjustments, the termination date has been set for 30 September 2028 (last possible collection date). After this date, it will no longer be possible to submit LSV+/BDD collections. Financial institutions are free to offer LSV+/BDD until this date or to discontinue the service earlier.

New financial institutions can be activated for LSV+/BDD until 31 December 2025. After this date, SIX will no longer approve any applications for new acceptance from the direct debit payer's financial institution or the invoice issuer's financial institution. Existing LSV+/BDD financial institutions can continue to use the service until 30 September 2028.

New invoice issuers can be activated for LSV+/BDD until 31 December 2025. After this date, SIX will no longer issue new LSV identifiers. Existing LSV+/BDD invoice issuers can continue to use the service until 30 September 2028, provided that the respective financial institution offers the service for this period.

The LSV+/BDD direct debit services will be discontinued on 30 September 2028, or earlier, depending on the individual offer of each financial institution.

In the meantime, invoice recipients can already switch to alternative payment options (e.g., eBill, QR-bill, standing order or single payment order). To do so, they must proactively check whether their invoice issuer offers the payment option in question. If the invoice issuer offers eBill, for example, invoice recipients can already switch to eBill in their online banking.

In general, however, the respective invoice issuer should define the potential future payment alternatives to the LSV+/BDD direct debit procedures and inform their invoice recipients about them. Invoice recipients therefore do not have to do anything initially, but should be contacted by their invoice issuer about the possible payment alternatives.