Businesses urged to take action on UK direct debit changes
Businesses and other organisations here that use a UK based payment
service provider to process direct debits are being urged to check they
are ready for important changes that will apply after January 1.
According to the Banking and Payments Federation Ireland (BPFI), if they
want to ensure smooth and uninterrupted continuation of the processing
of their direct debits following Brexit, certain businesses must take
action now.
The organisation estimates that as many as 140,000 recurring direct
debits are at risk after the UK becomes a third country when the Brexit
transition period comes to end.
“A wide range of businesses in Ireland, from utility companies to
membership organisations, use Payment Service Providers (PSPs) based in
the UK to process the direct debits of their customers,” said Brian
Hayes, chief executive of the BPFI.
“However, when the Brexit transition period ends on December 31,
businesses must ensure that any additional information required is added
to the direct debit transactions provided to the UK based PSP so as to
ensure the seamless processing of direct debits between the UK and
Ireland,” Mr Hayes said.
“The information typically required will be the address of a customer,” he added.
BPFI thinks 80% of impacted transactions meet the new requirements,
but has advised that organisations and businesses behind the remaining
ones need to act now.
If they do not then they risk a scenario where banks will be forced
to reject consumers’ direct debits from the start of next year.
“In
recent months BPFI has written to over 150 businesses and
organisations, who use a UK-based PSP, encouraging them to provide the
necessary additional information on their direct debit transactions,” Mr
Hayes added.
“In parallel, BPFI and our members have been actively engaged with
the relevant UK PSPs to ensure the required engagement with their
business customers in Ireland.”
The federation has urged anyone who has concerns or needs more
information about this matter to contact their payment service provider.
Article Source: Businesses urged to take action on UK direct debit charges – RTE – Will Goodbody
