direct debit facilities management: switching providers · direct debit facilities management:...

22
Policy statement Direct Debit Facilities Management: Switching Providers Our decision on changes to the Direct Debit rules relating to the switching of Facilities Management providers December 2017 PS17/3

Upload: others

Post on 13-Jul-2020

10 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Direct Debit Facilities Management: Switching Providers · Direct Debit Facilities Management: Policy statement PS17/3 Payment Systems Regulator December 2017 4 2 Introduction Background

Policy statement

Direct Debit Facilities Management: Switching ProvidersOur decision on changes to the Direct Debit rules relating to the switching of Facilities Management providers

December 2017

PS17/3

Page 2: Direct Debit Facilities Management: Switching Providers · Direct Debit Facilities Management: Policy statement PS17/3 Payment Systems Regulator December 2017 4 2 Introduction Background

:2.019 :0;29 ?712<29203 !75780@059C D4<21E 39790@059 DF*GHI

J4590593

! "#$%#&$' ((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((( !!"##$%&'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''()*+%*,+- ./ %+01.20+0 3. ."% 4.20"53$3,.2''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''6)*+%*,+- ./ ."% 7+4,0,.2''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''8

) *+,%-./0,&-+ ((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((( 19$4:;%."27'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''<!-,34=,2; 3. $2 $53+%2$3,*+ >$4,5,3,+0 ?$2$;+#+23 0+%*,4+ 1%.*,7+% ''''''''''''''''''''''''''''''''''''''''''''''@

2 3/445%6 -7 8/94&88&-+8 5+. -/% %$8:-+8$ ((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((( ;

1 "/% .$0&8&-+((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((( !<

=++$> !

?$8:-+.$+,8 ,- -/% 0-+8/@,5,&-+ (((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((( !A

=++$> )

B-+8/@,5,&-+ C/$8,&-+8 7%-4 BD!;E! (((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((( )F

Page 3: Direct Debit Facilities Management: Switching Providers · Direct Debit Facilities Management: Policy statement PS17/3 Payment Systems Regulator December 2017 4 2 Introduction Background

:2.019 :0;29 ?712<29203 !75780@059C D4<21E 39790@059 DF*GHI

D7E@059 FE390@3 &08-<794. :010@;0. ()*G *

896$#6"$2

A=,0 ,0 3=+ B$&#+23 !&03+#0 C+;"5$3.%D0 EB!CD0F 7+4,0,.2 3. #$:+ "0+ ./ ."% 1.-+%0 "27+%0+43,.2 @< EG,%+43,.20F ./ 3=+ >,2$24,$5 !+%*,4+0 E9$2:,2; C+/.%#F H43 6I(8 E>!9CHF 3. %+J",%+ 3=+ .1+%$3.% ./ 3=+ 9$40 1$&#+23 0&03+# G,%+43 G+K,3 EGGF 04=+#+ 3. 7+*+5.1 $ B!CL$11%.*+7 15$2 ,2 %+5$3,.2 3. 4=$2;+0 3. 3=+ 04=+#+ %"5+0 %+5$3,2; 3. 4"03.#+%0 0++:,2; 3. 4=$2;+ 3=+,% GG >$4,5,3,+0 ?$2$;+#+23 0+%*,4+ 1%.*,7+% $27 3. 7,%+43 ,3 ,2 %+5$3,.2 3. 3=$3 4=$2;+'

M2 3=,0 03$3+#+23 -+ %+01.27 3. 3=+ 0"K#,00,.20 -+ %+4+,*+7 3. ."% 4.20"53$3,.2 1$1+% NB(OP(Q !"#$%& !$'"& ()%"*"&"$+ ,)-).$/$-&0 +1"&%2"-. 3#45"6$#+ EH";"03 6I(OFQ $27 -+ 0+3 ."3 ."% 1.5,4& 7+4,0,.20 /.% 3=+ ,00"+0 -+ 4.20"53+7 .2'

!"##$%&

!(! A=+ G,%+43 G+K,3 EGGF 04=+#+ ,0 1$%3 ./ 3=+ 9$40 1$&#+23 0&03+#' R+ =$*+ 7+4,7+7 3. ;,*+ $ 7,%+43,.2 3. 3=+ .1+%$3.% ./ 3=+ 9$40 1$&#+23 0&03+# 3. +20"%+ 3=$3 3=+ GG 04=+#+ $77%+00+0+//+43,*+5& 4.24+%20 $K."3 1.3+23,$5 ,#1+7,#+230 3. 0-,34=,2; GG S/$4,5,3,+0 #$2$;+#+23D E>?F 0+%*,4+ 1%.*,7+%0' A=+ 1"%1.0+ ./ ."% 7,%+43,.2 ,0 3. +20"%+ 3=$3 >? 0+%*,4+ 1%.*,7+%0 3=$3 -,0= 3. 7. 0. 4$2 "0+ 3=+ 9$40 SK"5: 4=$2;+ 1%.4+00D 3. =+51 45,+230 -=. -,0= 3. 0-,34= 3. $2.3=+% 1%.*,7+%'

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

• ."% 1%.*,0,.2$5 4.245"0,.20 $27 1%.1.0+7 0.5"3,.2 3. 3=+ 4.24+%20 %$,0+7 3. "0 K& .2+ >? 1%.*,7+%6Q $K."3 3=+ $K,5,3& ./ ."3;.,2; >? 1%.*,7+%0 3. ,24%+$0+ 3=+ 0-,34=,2; 4.030 ./Q $27 7,0%"13,.2 3.Q ,24.#,2; >? 1%.*,7+%0Q 4"03.#+%0 ./ >? 1%.*,7+%0 ES>? 45,+230DF -=. -$23 3. 4=$2;+ 3=+,% 1%.*,7+%Q $27 3=+ GG 1$&+%0 -=. $%+ 3=+ "27+%5&,2; 4"03.#+%0 ./ >? 45,+230

• ,#15+#+23$3,.2 .13,.20 /.% ."% 1%.1.0+7 0.5"3,.2

M2 NB(OP( -+ 1%.1.0+7 3. "0+ ."% 1.-+%0 "27+% 0+43,.2 @@ E!&03+# %"5+0F ./ 3=+ >,2$24,$5 !+%*,4+0 E9$2:,2; C+/.%#F H43 6I(8 E>!9CHF 3. 15$4+ $ 01+4,/,4 %+J",%+#+23 .2 3=+ .1+%$3.% ./ 3=+ G,%+43 G+K,3 04=+#+Q 9$40 B$&#+23 !4=+#+0 W,#,3+7 E9B!WF8Q 3. 4=$2;+ 3=+ GG %"5+0 3. $4=,+*+ $

( NB(OP(Q !"#$%& !$'"& ()%"*"&"$+ ,)-).$/$-&0 71"&%2"-. 3#45"6$#+ EH";"03 6I(OFV ---'10%'.%;'":P10%L

1"K5,4$3,.20P4.20"53$3,.20PNBL(OL(LG,%+43LG+K,3L>$4,5,3,+0L?$2$;+#+23L!-,34=,2;6 A=+ 4.24+%20 -+%+ %$,0+7 K& X.N$%75+00 W37 ,2 ,30 5+33+% 3. "0 7$3+7 8I ?$%4= 6I(O' A=,0 5+33+% -$0 1"K5,0=+7 $0 H22+T 8 3.

."% 4.20"53$3,.2 1$1+% NB(OP(V ---'10%'.%;'":P0,3+0P7+/$"53P/,5+0P#+7,$PBG>PB!CLNB(OL(LGGLH22+TL8'17/8 >.% 3=+ $*.,7$24+ ./ 7."K3Q %+/+%+24+0 3. 9B!W ,2 3=,0 7.4"#+23 $115& +J"$55& 3. ,30 ,23+27+7 0"44+00.% .%;$2,0$3,.2 $0 9$40

.1+%$3.%Q -=,4= ,0 4"%%+235& "0,2; 3=+ -.%:,2; 3,35+ ./ SY+- B$&#+23 !&03+# )1+%$3.% EYB!)FD'

Page 4: Direct Debit Facilities Management: Switching Providers · Direct Debit Facilities Management: Policy statement PS17/3 Payment Systems Regulator December 2017 4 2 Introduction Background

:2.019 :0;29 ?712<29203 !75780@059C D4<21E 39790@059 DF*GHI

D7E@059 FE390@3 &08-<794. :010@;0. ()*G (

01+4,/,+7 1"%1.0+' A=+ 1"%1.0+ ./ 3=+ %"5+ 4=$2;+ -."57 K+ 3. %+J",%+ +T,03,2; >? 1%.*,7+%0Q $43,2; ,2 3=+ 4."%0+ ./ K"0,2+00Q 3. "0+ 3=+ K"5: 4=$2;+ 1%.4+00 E3. $00,03 $ 4"03.#+% -,0=,2; 3. 4=$2;+ ,30 >? 1%.*,7+%F "25+00 4+%3$,2 +T4+13,.20 $115,+7'

!(2 G"%,2; ."% 4.20"53$3,.2 9B!W $7*,0+7 "0 ,3 -$0 /"55& 4.##,33+7 3. 0"11.%3,2; $ *,K%$23 >? 0+43.% /.% 3=.0+ 4"03.#+%0 -=. -,0= 3. "3,5,0+ ,3' 9B!W 0$,7 ,3 -$0 $5%+$7& ,2 4.23$43 -,3= >? 1%.*,7+%0%+;$%7,2; $2 $53+%2$3,*+ $11%.$4= 3. 3=+ .2+ -+ =$7 1%.1.0+7Q $0 $ #+$20 ./ $77%+00,2; 3=+ 0-,34=,2; 4.24+%20 ,2 -=$3 ,3 4.20,7+%0 3. K+ $ #.%+ +//+43,*+ -$&' A=+ 9B!W $53+%2$3,*+ $11%.$4= ,0 K$0+7 .2 ,3V

$' $#+27,2; 3=+ 7+/,2,3,.2 ./ S>? 1%.*,7+%D ,2 3=+ G,%+43 G+K,3 %"5+0

K' ,23%.7"4,2; $ %"5+ %+J",%,2; 4.##+%4,$5 >? 1%.*,7+%0 3. K+4.#+ $44%+7,3+7 K& 9B!W "27+% $ 2+- $44%+7,3$3,.2 04=+#+

4' ,245"7,2; -,3=,2 3=+ 2+- $44%+7,3$3,.2 04=+#+ $ %+J",%+#+23 /.% >? 1%.*,7+%0 3. 0"11.%3 4"03.#+%0 -=. -$23 3. 4=$2;+ 1%.*,7+%Q K& "0,2; 3=+ 9$40 K"5: 4=$2;+ 1%.4+00 "25+00 4+%3$,2 +T+#13,.20 $115&

!(1 R+ 2.3+ 3=$3 9B!W =$0 $5%+$7& 4.#15+3+7 1$%30 S$D $27 SKD8 -=,4= $%+ +2$K5+%0 /.% 3=+ ,23%.7"43,.2 ./ 1$%3 S4DQ $27 3=$3 3=+0+ 4=$2;+0 4.#+ ,23. +//+43 .2 ( Z$2"$%& 6I([' !1+4,/,4$55&Q ,2 Y.*+#K+% 6I(OQ ,3 -%.3+ 3. >? 1%.*,7+%0 03$3,2; 3=$3V

• ,3 -,55 #$:+ 4=$2;+0 3. 3=+ 9$40 !+%*,4+ \0+%D0 X",7+ $27 C"5+0 3. 3=+ G,%+43 G+K,3 !4=+#+E!\XCFQ 3. 4=$2;+ 3=+ 7+/,2,3,.2 ./ S4.##+%4,$5 >$4,5,3,+0 ?$2$;+#+23D

• 4.##+%4,$5 >? 1%.*,7+%0 $%+ 3. K+ %+J",%+7 3. K+ $44%+7,3+7 K& 9B!W $0 $ 4.27,3,.2 ./ 1%.*,7,2; >? 0+%*,4+0

!(< X,*+2 3=$3 9B!W =$0 $5%+$7& 3$:+2 03+10 3. 4=$2;+ 3=+ G,%+43 G+K,3 %"5+0 -+ =$*+ 7+4,7+7 2.3 3. "0+ ."% %"5+0 4=$2;+ 1.-+%0 "27+% 0+43,.2 @@ ./ >!9CHQ K"3 ,203+$7 3. "0+ ."% 0+43,.2 @< 1.-+%0 3. ;,*+ 9B!W 01+4,/,4 7,%+43,.20' M2 ."% 7,%+43,.20 -+ -,55 %+J",%+ 9B!W 3. 0+3 ."3 ,30 15$20 /.% >? 1%.*,7+% $44%+7,3$3,.2 3. "0 ,2 7+3$,5Q $27 1%.*,7+ $ #+4=$2,0# /.% 3=+ B!C 3. $11%.*+ 3=.0+ 15$20' A=+ B!C -,55 3=+2 K+ ,2 $ 1.0,3,.2 3. #.2,3.% 3=.0+ 15$20 $27 +20"%+ 3=+& $%+ 1%.;%+00+7 ,2 $2 $11%.1%,$3+ 3,#+04$5+' R+ 7,04"00 3=,0 /"%3=+% ,2 1$%$;%$1=0 ('(6 3. ('(<'

'()%(*)+ ,- %)./,0.). 1, ,"% 2,0."31$1*,0

!(G R+ %+4+,*+7 $ 3.3$5 ./ 3-+5*+ %+01.20+0 3. ."% 4.20"53$3,.2 1$1+% NB(OP( E0++ H22+T ( /.% $ 5,03 ./ 3=+ %+01.27+230F' !+*+2 4$#+ /%.# >? 1%.*,7+%0Q 3=%++ /%.# 01.20.% K$2:0Q .2+ /%.# $2 >? 45,+23 $27 .2+ /%.# 3=+ G,%+43 G+K,3 .1+%$3.%Q 9B!W'

!(; A=+ #$].%,3& ./ %+01.20+0 0"11.%3+7 ."% /,%03 1%.*,0,.2$5 4.245"0,.2 3=$3 3=+ 4"%%+23 $K,5,3& ./ +T,03,2; >? 1%.*,7+%0 3. $//+43 3=+ 0-,34=,2; 4.030 ./ .3=+% 1%.*,7+%0 $27 45,+230 ,0 2.3 $11%.1%,$3+' )2+ >? 1%.*,7+% 7,7 2.3 $;%++ -,3= ."% /,%03 1%.*,0,.2$5 4.245"0,.2Q 0$&,2; 3=$3 ,3 =$7 2.3 +T1+%,+24+7 $2& ,00"+0 -,3= 3=+ 4"%%+23 1%.4+00'

!(H !,#,5$%5&Q 3=+ #$].%,3& ./ %+01.20+0 $50. 0"11.%3+7 ."% 0+4.27 1%.*,0,.2$5 4.245"0,.2 3=$3 $ *.5"23$%& $11%.$4= ,0 "25,:+5& 3. $77%+00 4.24+%20Q $27 3=$3 $ %"5+ 4=$2;+ 3. #$:+ "0+ ./ 3=+ 9$40 K"5: 4=$2;+ 1%.4+00 #$27$3.%& E1%.*,7+7 4+%3$,2 4.27,3,.20 $%+ #+3F ,0 $ 1%.1.%3,.2$3+ $27 +//+43,*+ $11%.$4=' A=+%+ -+%+ 2. .K]+43,.20 3. 3=+ 1%,24,15+ ./ 0++:,2; 3. $77%+00 4.24+%20 K& -$& ./ $ %"5+ 4=$2;+'

!(A )"% 3=,%7 1%.*,0,.2$5 4.245"0,.2 -$0 3=$3 -+ 0=."57 01+4,/,4$55& %+J",%+ 9B!W 3. 4=$2;+ 3=+ GG %"5+0 3. %+J",%+ +T,03,2; >? 1%.*,7+%0 3. "0+ 3=+ K"5: 4=$2;+ 1%.4+00 "25+00 4+%3$,2 +T4+13,.20 $115&' H;$,2 3=,0 4.245"0,.2 -$0 0"11.%3+7 K& 3=+ #$].%,3& ./ %+01.27+230' )25& .2+ >? 1%.*,7+% E3=+ 0$#+ .2+ -+ %+/+% 3. ,2 1$%$;%$1= ('OF 7,7 2.3 $;%++^ $27 .2+ 01.20.% K$2: -$0 4$"3,."0Q 0";;+03,2; ,3 #$& K+ 7,//,4"53 3. 7+0,;2 $27 .1+%$3+ $ %+5+*$23 %"5+ 4=$2;+'

Page 5: Direct Debit Facilities Management: Switching Providers · Direct Debit Facilities Management: Policy statement PS17/3 Payment Systems Regulator December 2017 4 2 Introduction Background

:2.019 :0;29 ?712<29203 !75780@059C D4<21E 39790@059 DF*GHI

D7E@059 FE390@3 &08-<794. :010@;0. ()*G I

!(!F R,3= %+;$%7 3. ,#15+#+23$3,.2 $27 +//+43,*+2+00Q 3=+%+ -+%+ 7,//+%,2; *,+-0 $27 0";;+03,.20' A=+ #$,2 3=+#+0 3=$3 $%.0+ -+%+ $%."27 ,#15+#+23$3,.2 3,#,2;Q 03,1"5$3,.2 ./ 0+%*,4+ 5+*+50Q %"5+0 +2/.%4+#+23Q $27 3=+ 4=$55+2;+0 ./ ,#15+#+23,2; $2 $44%+7,3$3,.2LK$0+7 $11%.$4='

'()%(*)+ ,- ,"% 4)2*.*,0

!(!! >.55.-,2; ."% 4.20"53$3,.2 $27 3$:,2; ,23. $44."23 3=+ 0"K#,00,.20 -+ %+4+,*+7 $27 3=+ %+5+*$23 4.20,7+%$3,.20Q -+ 4.2/,%# ."% 3=%++ 1%.*,0,.2$5 4.245"0,.20 $0 ."% /,2$5 4.245"0,.20' R+ -+54.#+ 9B!WD0 ,2,3,$3,*+0 $27 2.3+ 3=+ $53+%2$3,*+ $11%.$4= ,3 =$0 K++2 1"%0",2; 3. $77%+00 3=+ 1%.K5+#0 -+ 4.20"53+7 .2 E0++ 1$%$;%$1= ('8F' A. 0"11.%3 3=,0 -+ =$*+ 3=+%+/.%+ 7+4,7+7 3. +T+%4,0+ ."% 1.-+%0 "27+% 0+43,.2 @< EG,%+43,.20F ./ >!9CH 3. ;,*+ $ 7,%+43,.2 3. 3=+ .1+%$3.% ./ 3=+ 9$40 1$&#+23 0&03+#' R+ =$*+ 7+4,7+7 2.3 3. "0+ ."% 0+43,.2 @@ E!&03+# %"5+0F 1.-+%0 ;,*+2 3=$2 9B!W =$0 $5%+$7& 3$:+2 03+10 3. #$:+ $ %+5+*$23 %"5+ 4=$2;+ -,3= +//+43 /%.# ( Z$2"$%& 6I(['

!(!) R+ $%+ ./ 3=+ *,+- 3=$3 ,2 "0,2; ."% 1.-+%0 ,2 3=,0 -$& -+ -,55 =$*+ %+;"5$3.%& .*+%0,;=3 ./ 3=+ 7+*+5.1#+23 $27 ,#15+#+23$3,.2 ./ 9B!WD0 $53+%2$3,*+ $11%.$4=' R+ 2.3+ 3=$3 9B!W =$0 =$7 1%+*,."0 .11.%3"2,3,+0 3. $77%+00 3=+ 4.24+%20<Q 0. K& "0,2; ."% 1.-+%0 $3 3=,0 3,#+ -+ -,55 2.- 1%.*,7+ 4+%3$,23& 3. 03$:+=.57+%0 3=$3 3=+ 4.24+%20 -,55 K+ %+#+7,+7 $11%.1%,$3+5&Q $27 -,55 $50. $00,03 9B!W ,2 .K3$,2,2; 3=+ 0"11.%3 ,3 2++70 ,2 .%7+% 3. ,#15+#+23 #+$0"%+0 ,2 $ 3,#+5& $27 +//+43,*+ #$22+%'

!(!2 )"% 7,%+43,.2 -,55 %+J",%+ 3=+ .1+%$3.%V

• 3. +20"%+ 3=$3 4.##+%4,$5 >? 0+%*,4+ 1%.*,7+%0 3=$3 -,0= 3. 7. 0. 4$2 "0+ 3=+ 9$40 K"5: 4=$2;+ 1%.4+00 3. =+51 45,+230 -=. -,0= 3. 0-,34= 3.P/%.# $2.3=+% 1%.*,7+%

• 3. 0"K#,3 /.% ."% $11%.*$5 $ 15$2 $27 3,#+3$K5+ 3. $4=,+*+ 3=$3 ."34.#+ 3=%.";= 3=+ $53+%2$3,*+ $11%.$4=

!(!1 R,3= %+;$%7 3. ,#15+#+23$3,.2Q -+ =$*+ 7+4,7+7 2.3 3. 1%+04%,K+ 3=+ 7+3$,5+7 $11%.$4= 3. K+ "0+7 K& 3=+ G,%+43 G+K,3 .1+%$3.%' A=+%+/.%+ 3=+ .1+%$3.% ./ 3=+ GG 04=+#+ -,55 K+ /%++ 3. ,#15+#+23 $2 $53+%2$3,*+ $11%.$4= 1%.*,7+7 ,3 4$2 45+$%5& 7+#.203%$3+ 3. "0 3=$3 ,3 -,55 +//+43,*+5& $77%+00 3=+ 4.24+%20 ,2 $2 $44+13$K5+ 3,#+/%$#+' Y+*+%3=+5+00Q 3=+ 7+3$,5+7 7+0,;2 ./ 3=+ 2+- $44%+7,3$3,.2 04=+#+ -,55 K+ 4%"4,$5 3. +20"%,2; 3=$3 3=+ 4.24+%20 $%+ +//+43,*+5& $77%+00+7' H3 3=+ 3,#+ ./ -%,3,2; -+ 7. 2.3 4.20,7+% 3=$3 3=+ ,2/.%#$3,.2 1%.*,7+7 3. "0 %+;$%7,2; 3=+ $44%+7,3$3,.2 04=+#+ ;,*+0 "0 0"//,4,+23 4+%3$,23& 3. $00"%+ "0 3=$3 ,3 -,55 +//+43,*+5& $77%+00 3=+ 4.24+%20 ,2 $ 3,#+5& #$22+%'

!(!< R+ 7,04"00 ."% 7+4,0,.2 $27 %+$0.2,2; ,2 #.%+ 7+3$,5 ,2 N=$13+% <'

< R+ .%,;,2$55& -%.3+ 3. 9B!W .2 6_ Z"5& 6I(_ 3. $0: ,3 3. 4.20,7+% $2 $11%.1%,$3+ 0.5"3,.2 3. 3=+ 4.24+%20 %$,0+7 K&

X.N$%75+00 W37'

Page 6: Direct Debit Facilities Management: Switching Providers · Direct Debit Facilities Management: Policy statement PS17/3 Payment Systems Regulator December 2017 4 2 Introduction Background

:2.019 :0;29 ?712<29203 !75780@059C D4<21E 39790@059 DF*GHI

D7E@059 FE390@3 &08-<794. :010@;0. ()*G K

:;-&#57<%&"5-

5$267%,"04

G,%+43 G+K,3 EGGF ,0 .2+ ./ 3=+ #.03 -,7+5& "0+7 $27 %+4.;2,0+7 1$&#+23 #+3=.70 ,2 3=+ \`' M2 )(!6I(_ .%;$2,0$3,.20 4.55+43+7 .*+% < K,55,.2 ,27,*,7"$5 1$&#+230 "0,2; GGQ $2 ,24%+$0+ ./ <'ab .2 3=+ 1%+*,."0 &+$%' GG ,0 -,7+5& "0+7 K& .%;$2,0$3,.20 0"4= $0 4.#1$2,+0Q 4=$%,3,+0Q 5.4$5 4."24,50 $27 ;.*+%2#+23 7+1$%3#+230Q 3. 4.55+43 #.2+& /%.# 3=+,% 1$&,2; 4"03.#+%0 .% 7.2.%0' H5#.03 aIb ./ \` $7"530 =$*+ $3 5+$03 .2+ GG $%%$2;+#+23 ,2 15$4+'

H2& .%;$2,0$3,.2 3=$3 -$230 3. "0+ GG 3. 4.55+43 #.2+& /%.# 1$&+%0 #"03 K+ $11%.*+7Q .% )()S01.20.%+7DQ $0 $ 9$40 0+%*,4+ "0+%' M2 3=+ %"5+0 %+5$3,2; 3. GGQ 3=+0+ .%;$2,0$3,.20 $%+ 01+4,/,4$55& 7+/,2+7 $0 S0+%*,4+ "0+%0D E0++ K.T K+5.-F' A=+ 01.20.% #"03 K+ $ 1$&#+23 0+%*,4+ 1%.*,7+% EB!BF -=. ,0 $ 9$40 #+#K+%Q -=,4= 4"%%+235& .25& ,245"7+0 K$2:0 $27 K",57,2; 0.4,+3,+0'@

!.#+ .%;$2,0$3,.20 7. 2.3 -$23 3. K+ $ 9$40 0+%*,4+ "0+%Q .% $%+ "2$K5+ 3. K+' A=,0 4."57 K+ /.% $ )(2*$%,+3& ./ %+$0.20 U /.% +T$#15+Q 3=+& #$& K+ 0#$55 .% 2+-5& /.%#+7 +23,3,+0Q -,3=."3 $ 0"//,4,+23 3%$7,2; 3%$4: %+4.%7 .% /,2$24,$5 03$27,2; 3. ;+3 $ 01.20.%'

A=+0+ .%;$2,0$3,.20 #$& ,203+$7 K+ $K5+ 3. "0+ $ GG >$4,5,3,+0 ?$2$;+#+23 0+%*,4+ 1%.*,7+% E$2 )(1>? 1%.*,7+%F' A=,0 4$2 +2$K5+ 3=+ .%;$2,0$3,.2 $0 $2 >? 45,+23 3. .//+% GG $0 $ 1$&#+23 .13,.2 3. ,30 .-2 1$&,2; 4"03.#+%0' A=+ >? 1%.*,7+% -,55 K+ %+01.20,K5+ /.% 0.#+ .% $55 ./ 3=+ /.55.-,2;V

• N.%%+01.27,2; -,3= 3=+ 1$&+%'

• C+4+,*,2; 4.#15+3+7 G,%+43 G+K,3 M203%"43,.20 EGGM0F $27 /.%-$%7,2; 7+3$,50 3. 3=+ 1$&+%D0 K$2: .% K",57,2; 0.4,+3& E3=+ 1$&,2; K$2:F'

• N.#15&,2; -,3= 3=+ G,%+43 G+K,3 %"5+0 ,245"7,2; =$275,2; $2& %+/"27 %+J"+030'

• ?$2$;+#+23 ./ %+3"%2+7Q $#+27+7 $27 4$24+55+7 GGM0'

• ?$2$;+#+23 ./ /,5+0 $27 4.55+43,.2 ./ G,%+43 G+K,30 .2 3=+ 7"+ 7$3+0Q ,245"7,2; %+4.24,5,$3,.2 ./ 1%.4+00+7Q %+]+43+7 $27 %+3"%2+7 ,3+#0'

IJ$ ,$%48 K8$%#&0$ /8$%L 5+. K8$%#&0$M/8$%L

M2 3=+ %"5+0 %+5$3,2; 3. 3=+ GG 04=+#+Q 3=+ 3+%# S0+%*,4+ "0+%D =$0 $ 2$%%.-+% 7+/,2,3,.2 3=$2 3=+ #.%+ ;+2+%$5 S0+%*,4+L"0+%D 3+%# ,2 >!9CH' M2 3=+ 9$40 %"5+0 %+5$3,2; 3. 3=+ GG 04=+#+Q 3=+ 3+%# 0+%*,4+ "0+% ,0 SH 4.#1$2&Q ;%."1 ./ 4.#1$2,+0Q 4=$%,3& +34' 3=$3 ,0 01.20.%+7 3. "0+ .2+ .% #.%+ 9$40 0+%*,4+0' H 0+%*,4+ "0+% #$& $50. K+ %+/+%%+7 3. $0 $ 1$&++' E!++ $50. )%,;,2$3.%FD'

M2 >!9CHQ 0+%*,4+L"0+%0 $%+ 3=.0+ -=. "0+Q .% $%+ 5,:+5& 3. "0+Q 0+%*,4+0 1%.*,7+7 K& 1$&#+23 0&03+#0' A=+ >!9CH 7+/,2,3,.2 ./ 0+%*,4+L"0+%0 3=+%+/.%+ ,245"7+0 K.3= 9$40 S0+%*,4+ "0+%0D $27 >? 45,+230Q /.% +T$#15+'

@ )25& B!B0 3=$3 $%+ #+#K+%0 ./ 9B!W $%+ $K5+ 3. 01.20.% 0+%*,4+ "0+%0' B!B0 -=. $%+ 2.2L#+#K+%0 #$& +23+% ,23. $2

$%%$2;+#+23 -,3= $ #+#K+%Q $55.-,2; 3=+# 3. ,23%.7"4+ 4"03.#+%0 3. 3=$3 #+#K+% /.% 01.20.%,2; 1"%1.0+0'

Page 7: Direct Debit Facilities Management: Switching Providers · Direct Debit Facilities Management: Policy statement PS17/3 Payment Systems Regulator December 2017 4 2 Introduction Background

:2.019 :0;29 ?712<29203 !75780@059C D4<21E 39790@059 DF*GHI

D7E@059 FE390@3 &08-<794. :010@;0. ()*G +

A=+ >? 1%.*,7+% 4.55+430 /"270 /%.# 3=+ K$2: $44."230 ./ ,30 >? 45,+23D0 4"03.#+%0 E1$&+%0F )(<"0,2; GG' H/3+% 3=+ >? 1%.*,7+% =$0 %+4+,*+7 3=+ /"270Q ,3 /.%-$%70 3=+ 1%.4++70 E5+00 $2& $;%++77+7"43,.20F 3. ,30 >? 45,+23' H2 .*+%*,+- ./ 3=,0 1%.4+00 -$0 4.23$,2+7 ,2 NB(OP( EH22+T (Q B$%3 6F'

!+*128*07 1, $0 $31)%0$1*() 9$2*3*1*). :$0$7)#)01 .)%(*2) /%,(*4)%

H2 >? 45,+23 E3&1,4$55& $ 0#$55 .% #+7,"# +23+%1%,0+F -,55 =$*+ $ 4"03.#+% K$0+Q #$2& ./ )(G-=.# #$& $5%+$7& =$*+ 1%.*,7+7 $ GGM_ $27 $%+ 1$&,2; K& GG' c$4= GGM ,0 $43"$55& #$7+ 3. 3=+ >? 1%.*,7+%'

M/ $2 >? 45,+23 -,0=+0 3. 0-,34= 3. $2 $53+%2$3,*+ >? 1%.*,7+%Q ,3 +//+43,*+5& =$0 3-. .13,.20OV)(;

$' M3 4$2 4.23$43 $55 ./ ,30 4"03.#+%0 E1$&+%0F $27 $0: +$4= .2+ 3. 1%.*,7+ $ 2+- GGM ,2 /$*."% ./ 3=+ 2+- >? 1%.*,7+%'

K' M3 4$2 $0: 3=+ +T,03,2; E."3;.,2;F >? 1%.*,7+% $27 3=+ 2+- >? 1%.*,7+% 3. 4..1+%$3+ 3. 3%$20/+% +T,03,2; GGM0 3. 3=+ 2+- >? 1%.*,7+%' A=,0 3%$20/+% -."57 K+ 4$%%,+7 ."3 "0,2; 3=+ 9$40 9/@N 0J5+O$ :%-0$88Q -=,4= ,245"7+0 $ 03+1 3=$3 2.3,/,+0 1$&,2; K$2:0 3=$3 3=+ GGM0 $27 %+01.20,K,5,3,+0 /.% GG0 =$*+ 0-,34=+7 3. 3=+ 2+- >? 1%.*,7+%'

>? 45,+230 3+27 3. 1%+/+% "0,2; .13,.2 SKD' A=,0 ,0 3=+ $11%.$4= %+4.##+27+7 K& K.3= 9B!W $27 )(H01.20.% K$2:0 $0Q $44.%7,2; 3. 9B!WQ 3=+ $53+%2$3,*+ E.13,.2 S$DF ./ 4.23$43,2; +$4= 1$&+% $27 $0:,2; 3=+# 3. 1%.*,7+ $ K%$27 2+- GGM ,0 05.-Q 4.035& $27 5,:+5& 3. K+ 3=+ #.03 7,0%"13,*+ 3. 03$:+=.57+%0D'[

R+ %+4+,*+7 ,2/.%#$3,.2 0";;+03,2; 3=+ 4"%%+23 G,%+43 G+K,3 %"5+0 #$& K+ 7+/,4,+23Q ,2 3=$3 3=+& )(A$55.- +T,03,2; >? 1%.*,7+%0 3. %$,0+ 0,;2,/,4$23 4.03 K$%%,+%0 3. >? 45,+230 -=. -$23 3. 0-,34= 3. $2 $53+%2$3,*+ >? 1%.*,7+%' A=,0 ,0 *+%& 5,:+5& 3. =$%#V

• 4.#1+3,3,.2 ,2 3=+ #$%:+30 /.% 0+%*,4+0 1%.*,7+7 K& 1$&#+23 0&03+#0

• 3=+ ,23+%+030 ./ 3=.0+ -=. "0+Q .% $%+ 5,:+5& 3. "0+Q 0+%*,4+0 1%.*,7+7 K& 1$&#+23 0&03+#0

R+ -+%+ $0:+7 3. 4.20,7+% -=+3=+% 3=+ G,%+43 G+K,3 %"5+0 .2 >$4,5,3,+0 ?$2$;+#+23 E>?F 0+%*,4+0 0=."57 K+ 4=$2;+7Q 01+4,/,4$55& 4.24+%2,2; 3=+ .13,.20 $27 1%.4+00+0 /.% >? 45,+230 -=. -$23 3. 0-,34= 3. $ 2+- >? 1%.*,7+%'

A=+ 01+4,/,4 4.24+%2 %$,0+7 3. "0 -$0 3=$3Q "27+% 3=+ 4"%%+23 GG %"5+0Q 3=+ K"5: 4=$2;+ 1%.4+00 )(!F4$2 .25& 1%.4++7 -,3= 3=+ 4.20+23 ./ 3=+ ."3;.,2; >? 1%.*,7+%' A=,0 +//+43,*+5& $55.-0 $2 ."3;.,2; >? 1%.*,7+% 3=+ $K,5,3& 3. ,24%+$0+ 3=+ 4.030 $27 7,0%"13,.2 $00.4,$3+7 -,3= 0-,34=,2; K& %+/"0,2; 3. "0+ 3=+ K"5: 4=$2;+ 1%.4+00 3. $00,03 $ 0-,34='

A=+ ,2/.%#$3,.2 -+ %+4+,*+7Q 3.;+3=+% -,3= .3=+% +*,7+24+ -+ 4.55+43+7 E,245"7,2; ."% .-2 .25,2+ )(!!0"%*+& ./ >? 1%.*,7+%0 $27 3=+ +*,7+24+ ;$3=+%+7 K& 9B!WD0 .-2 4.20"53$3,.2 .2 3=,0 0"K]+43F 1%.#13+7 "0 3. 1"K5,0= ."% 4.20"53$3,.2 NB(OP( ,2 H";"03 6I(O'

_ G,%+43 G+K,3 M203%"43,.20 $%+ $50. 4.##.25& %+/+%%+7 3. $0 G,%+43 G+K,3 S#$27$3+0D'O 92$ :"&&*$ ;)%+ <="6$ &4 71"&%2"-. ()%"*"&"$+ ,)-).$/$-& >#45"6$#Q 1$;+0 < 3. @V

=3310VPP---'K$40'4.'":P7.4"#+235,K%$%&P5,335+dK$40d;",7+d3.d0-,34=,2;d/#d1%.*,7+%0'17/[ MK,7'

Page 8: Direct Debit Facilities Management: Switching Providers · Direct Debit Facilities Management: Policy statement PS17/3 Payment Systems Regulator December 2017 4 2 Introduction Background

:2.019 :0;29 ?712<29203 !75780@059C D4<21E 39790@059 DF*GHI

D7E@059 FE390@3 &08-<794. :010@;0. ()*G L

M2 ."% 4.20"53$3,.2 NB(OP(Q -+ 4.20"53+7 .2 1.3+23,$5 0.5"3,.20 3. 3=+ 4.24+%20 %$,0+7 $27 3=+ )(!),#15+#+23$3,.2 .13,.20 /.% ."% 1%.1.0+7 0.5"3,.2' A=+ J"+03,.20 1"3 ,2 3=+ 4.20"53$3,.2 $%+ 0+3 ."3 ,2 H22+T 6' M2 1$%3,4"5$%Q -+ %+$4=+7 3=%++ 1%.*,0,.2$5 4.245"0,.20V

$' A=+ 4"%%+23 $K,5,3& ./ +T,03,2; >? 1%.*,7+%0 3. $//+43 3=+ 0-,34=,2; 4.030 ./ .3=+% 1%.*,7+%0 $27 45,+230 ,0 2.3 $11%.1%,$3+ E-+ %+/+% 3. 3=,0 $0 ."% 7&%8, :%-#&8&-+5@ 0-+0@/8&-+F'

K' H *.5"23$%& $11%.$4= ,0 "25,:+5& 3. $77%+00 3=+ 4.24+%20 U 0. $ %"5+ 4=$2;+ 3. #$:+ 3=+ K"5: 4=$2;+ 1%.4+00 4.#1"50.%& /.% >? 1%.*,7+%0 E-=+2 $2 >? 45,+23 -$230 3. 0-,34=FQ 1%.*,7+7 3=$3 4+%3$,2 4.27,3,.20 $%+ #+3Q $11+$%0 3. K+ $ 1%.1.%3,.2$3+ $27 +//+43,*+ $11%.$4= 3. $77%+00 3=+ 4.24+%20 E-+ %+/+% 3. 3=,0 $0 ."% 8$0-+. :%-#&8&-+5@ 0-+0@/8&-+F'

4' H 0+20,K5+ $11%.$4= ,0 /.% 3=+ B!C 3. 01+4,/,4$55& %+J",%+ 9B!W 3. 4=$2;+ 3=+ GG %"5+0 3. $4=,+*+ $ 01+4,/,+7 1"%1.0+' A=,0 -."57 K+ 3. %+J",%+ +T,03,2; >? 1%.*,7+%0Q $43,2; ,2 3=+ 4."%0+ ./ K"0,2+00Q 3. "0+ 3=+ K"5: 4=$2;+ 1%.4+00 "25+00 4+%3$,2 +T4+13,.20 $115& E-+ %+/+%3. 3=,0 $0 ."% ,J&%. :%-#&8&-+5@ 0-+0@/8&-+F'

Page 9: Direct Debit Facilities Management: Switching Providers · Direct Debit Facilities Management: Policy statement PS17/3 Payment Systems Regulator December 2017 4 2 Introduction Background

:2.019 :0;29 ?712<29203 !75780@059C D4<21E 39790@059 DF*GHI

D7E@059 FE390@3 &08-<794. :010@;0. ()*G G

=1<//)#> 5? +<'/"++"5-+ )-7 5<# #$+45-+$

2(! M2 3=,0 0+43,.2 -+V

• 0"##$%,0+ 3=+ #$,2 1.,230 %$,0+7 K& %+01.27+230

• 45$%,/& $ 2"#K+% ./ ,00"+0 3=$3 -+%+ %$,0+7 7"%,2; 3=+ 4.20"53$3,.2

2() !3$:+=.57+%0 -+%+ ;+2+%$55& 0"11.%3,*+ ./ ."% 1%.*,0,.2$5 4.245"0,.20' H 4.20,7+%$K5+ 2"#K+% ./ %+01.27+230 $4:2.-5+7;+7 3=$3 $3 3=+ #.#+23 $2 >? 45,+23D0 ,24"#K+23 >? 1%.*,7+% #$& K+ $K5+ 3. %$,0+ 0,;2,/,4$23 K$%%,+%0 ,/ 3=$3 >? 45,+23 -$230 3. 0-,34= 3. $2 $53+%2$3,*+ >? 1%.*,7+%' e,+-0 -+%+ #,T+7 %+;$%7,2; 3=+ ,#15+#+23$3,.2 $11%.$4= /.% $ %"5+ 4=$2;+'

2(2 M2 3=+ %+#$,27+% ./ 3=,0 N=$13+% -+ 0"##$%,0+ 3=+ %+01.20+0 3=$3 -+ =$*+ %+4+,*+7 3. +$4= ./ 3=+ J"+03,.20 ,2 NB(OP('

P/$8,&-+ !Q RJ5, -9S$0,&#$ S/8,&7&05,&-+8 '-/@. 5+ $>&8,&+O TU :%-#&.$% J5#$ ,- %$7/8$ ,- /8$ ,J$ V508 9/@N 0J5+O$ :%-0$88 ,- 8'&,0J 8-4$ -% 5@@ &,8 9/8&+$88 ,- 5+ 5@,$%+5,&#$ TU :%-#&.$%W

2(1 !+*+2 ./ 3=+ 2,2+ %+01.27+230 3. 3=,0 J"+03,.2 0$,7 3=$3 3=+& 0$- 2. .K]+43,*+ ]"03,/,4$3,.20 /.% %+/"0,2; 3. "0+ 3=+ K"5: 4=$2;+ 1%.4+00Q .3=+% 3=$2 3=+ 1.3+23,$5 2++7 /.% $ 45,+23 3. 0+%*+ ."3 .% %+0.5*+ $2& 4.23%$43"$5 2.3,4+ 1+%,.7 .% .K5,;$3,.20 ,3 =$7 $;%++7 -,3= ,30 +T,03,2; 1%.*,7+%'a

2(< )2+ >? 1%.*,7+% #+23,.2+7 0.#+ $77,3,.2$5 %+$0.20 -=& $2 +T,03,2; >? 1%.*,7+% #,;=3 %+/"0+ 3=+ K"5: 4=$2;+ 1%.4+00 %+J"+03Q ,245"7,2; "20+335+7 GG ,27+#2,3& 45$,#0Q 0"01,4,.2 3=+ >? 45,+23 K"0,2+00 #$& K+ /%$"7"5+23Q .% 3=$3 3=+ >? 45,+23 =$7 +23+%+7 $7#,2,03%$3,.2 .% 5,J",7$3,.2' A-. >? 1%.*,7+%0 $50. #+23,.2+7 3=$3 3=+& 0=."57 K+ $K5+ 3. %+4.*+% 3=+,% 4.030 $00.4,$3+7 -,3= 0"11.%3,2; 3=+ K"5: 4=$2;+ 1%.4+00'

2(G )2+ 01.20.% K$2: 0$,7 ,3 7,7 2.3 4.20,7+% 3=$3 4.23%$43"$5 %+$0.20Q 0"4= $0 2.2L1$&#+23 ./ /++0 .% 0+%*,2; ./ $ 2.3,4+ 1+%,.7Q $%+ $ /"55& ]"03,/,$K5+ %+$0.2 3. 1%+*+23 3=+ /%++ #.*+#+23 ./ >? 45,+230 3. .3=+% 1%.*,7+%0' M3 +T1+43+7 3=$3 4.23%$430 K+3-++2 >? 1%.*,7+%0 $27 3=+,% >? 45,+230 -."57 K+ 5,:+5& 3. 4.23$,2 .3=+% $*+2"+0 $27 %+#+7,+0 /.% 3=+# 3. 1"%0"+ 3=+,% %,;=30'

a !.#+ %+01.27+230 #$7+ 45+$% 3=+& 0$- 2. .K]+43,*+ ]"03,/,4$3,.20 .2 3=+ $00"#13,.2 3=$3 3=+ ,24.#,2; >? 1%.*,7+% $27

01.20.% K$2: -+%+ -,55,2; 3. 3$:+ .2 3=+ 2+- K"0,2+00 $27 4.#15+3+ 3=+ K"5: 4=$2;+ 7++7 3. 3$:+ .2 3=+ 5,$K,5,3& ./ 1%+L+T,03,2; G,%+43 G+K,3 4.55+43,.20'

Page 10: Direct Debit Facilities Management: Switching Providers · Direct Debit Facilities Management: Policy statement PS17/3 Payment Systems Regulator December 2017 4 2 Introduction Background

:2.019 :0;29 ?712<29203 !75780@059C D4<21E 39790@059 DF*GHI

D7E@059 FE390@3 &08-<794. :010@;0. ()*G M

2(; )2+ 01.20.% K$2: 7+3$,5+7 0.#+ 1.3+23,$5 3+4=2,4$5 4,%4"#03$24+0 -=+%+ "0+ ./ 3=+ K"5: 4=$2;+ 1%.4+00 #$& 2.3 K+ 1.00,K5+ .% +4.2.#,4$5V

• R=+%+ 3=+ GGM ,0 "0+7 /.% #"53,15+ "27+%5&,2; 1%.7"430P0+%*,4+0 1%.*,7+7 K& 3=+ >? 45,+23 3. $ 1$&+%Q $27 -=+%+ 2.3 $55 ./ 3=+0+ 1%.7"430P0+%*,4+0 $%+ K+,2; #.*+7 3. 3=+ 2+- >? 1%.*,7+%' M2 3=,0 ,203$24+ $ 2+- GGM -."57 K+ %+J",%+7'

• R=+%+ 3=+ 9$40 !+%*,4+ \0+% Y"#K+% E!\YF "0+7 /.% GG 4.55+43,.20 ,0 2.3 +2$K5+7 /.% "0,2; 3=+ H"3.#$3+7 G,%+43 G+K,3 M203%"43,.2 !+%*,4+ EH\GGM!FQ $27 3=+%+/.%+ 4$22.3 1$%3,4,1$3+ ,2 $ K"5: 4=$2;+'

• R=+%+ 3=+ *.5"#+ ./ GGM0 /.% 3=+ >? 45,+23 -."57 #$:+ $ K"5: 4=$2;+ "2+4.2.#,4$5Q .% -=+%+ .K3$,2,2; 2+- GGM0 /%.# 1$&+%0 -."57 ,2*.5*+ 4.20,7+%$K5& 5+00 +//.%3'

2(H R+ +T1+43 3=+ G,%+43 G+K,3 .1+%$3.% 3. 3$:+ 3=+0+ *,+-0 ,23. $44."23 -=+2 4.20,7+%,2; -=$3 #,;=3 4.203,3"3+ %+$0.2$K5+ +T4+13,.20 /%.# $ %+J",%+#+23 3. "0+ 3=+ K"5: 4=$2;+ 1%.4+00' H0 -+ 0+3 ."3 ,2 ."% 4.20"53$3,.2 1$1+% NB(OP( ."% *,+- ,0 3=$3 4.##+%4,$5 7,01"3+0 0=."57 K+ %+0.5*+7 4.23%$43"$55& K+3-++2 3=+ >? 45,+23 $27 ,30 4"%%+23 >? 1%.*,7+%Q $27 0=."57 2.3 =.57 "1 $ 0-,34=,2; 1%.4+00 /.% /"3"%+ 0+%*,4+ 1%.*,0,.2'

;").1*,0 <= >, &," $7%)) +*18 ,"% -*%.1 /%,(*.*,0$3 2,023".*,0? @8$1 $%) 18) %)$.,0. -,% &,"% $0.+)%?

2(A A=+ #$].%,3& ./ 3=+ %+01.27+230 $;%++7 -,3= ."% /,%03 1%.*,0,.2$5 4.245"0,.2 3=$3 3=+ 4"%%+23 $K,5,3& ./ +T,03,2; >? 1%.*,7+%0 3. $//+43 3=+ 0-,34=,2; 4.030 ./ .3=+% 1%.*,7+%0 $27 45,+230 ,0 2.3 $11%.1%,$3+'

2(!F R+ %+4+,*+7 4.2/5,43,2; .1,2,.20 .2 3=+ 4.030 $00.4,$3+7 -,3= "0,2; 3=+ K"5: 4=$2;+ 1%.4+00' )2+ 1%.*,7+% 2.3+7 3=$3 3=+%+ ,0 $ 4.03 ,2*.5*+7 ,2 "0,2; 3=+ K"5: 4=$2;+ 1%.4+00Q 0. ,3 0=."57 K+ 4=$%;+$K5+ 5,:+ .3=+% 9$40 0+%*,4+0' H 7,//+%+23 %+01.27+23 $7*.4$3+7 3=$3 3=+%+ ,0 2. 5+;,3,#$3+ %+$0.2 /.% $2& >? 1%.*,7+% 3. #$:+ $2 $77,3,.2$5 4=$%;+ 3. +//+43 $ 0-,34=Q $0 3=+ 4.030 ,2*.5*+7 $%+ 5,#,3+7'

2(!! )2+ 0"K#,00,.2 $77+7 3=+ /.55.-,2; 4.##+230 .2 3=,0 J"+03,.2V

• H #$27$3.%& 3,#+04$5+ 0=."57 K+ 1"3 ,2 15$4+ 3=$3 /$*."%0 3=+ >? 45,+23D0 ,23+%+030'

• >? 1%.*,7+%0 #"03 4.2/,%# 3=$3 $55 7$3$ 4$13"%+7 $27 =+57 $0 1$%3 ./ 3=+,% >? %+01.20,K,5,3,+0 #"03 K+ 3%$20/+%%+7 3. 3=+ >? 45,+23 $3 3=+,% %+J"+03'

• H 4"03.#+%D0 GGM 0=."57 2.3 K+ $55.-+7 3. K+ #$7+ 3. $ 01+4,/,4 >? 1%.*,7+% -=+%+ 3=+,%%+5$3+7 1"%4=$0+P0"K04%,13,.2 4.23%$43 ,0 -,3= 3=+ >? 45,+23'

2(!) )2+ %+01.27+23 =,;=5,;=3+7 3=+ /$43 3=$3 "0+%0 E,'+' >? 45,+230F $%+ 1%+*+23+7 /%.# $44+00,2; 1.3+23,$55& #.%+ +//+43,*+ 0+%*,4+0Q 0. 3=+& #$& 2.3 %+4+,*+ *$5"+ /.% #.2+& /.% $ ;,*+2 0+%*,4+' A=+ 4"%%+23 0,3"$3,.2 $50. =$0 $2 $7*+%0+ +//+43 .2 ,22.*$3,.2 $0 1%.*,7+%0 -=. 4$2 $//+43 0-,34=,2; 4.030 $%+ 2.3 ,24+23,*,0+7 3. ,#1%.*+ 3=+,% .//+%,2; 3. #$,23$,2 45,+230Q $27 2+-+% 1%.*,7+%0 -=. #$& -,0= 3. +23+% 3=+ #$%:+3 $%+ /$4+7 -,3= K$%%,+%0 3. $33%$43,2; 45,+230'

2(!2 H 7,//+%+23 %+01.27+23 4.20,7+%+7 3=$3 ,3 -."57 K+ /$,% /.% $2& 7,01"3+0 3. K+ %+0.5*+7 4.23%$43"$55& K+3-++2 3=+ >? 45,+23 $27 ,30 4"%%+23 >? 1%.*,7+%Q K"3 3=+0+ 0=."57 2.3 K+ $55.-+7 3. =.57 "1 $ 0-,34=,2; 1%.4+00 /.% /"3"%+ 0+%*,4+ 1%.*,0,.2'

2(!1 H 01.20.% K$2: 4$"3,.2+7 ,2 3=+,% %+01.20+ 3=$3 $2& 1%.1.0+7 9$40 %"5+ 4=$2;+ .% 1%.4+7"%$5 4=$2;+0 #"03 2.3 K+ 7,0$7*$23$;+."0 3. 3=+ -,7+% 9$40 0+%*,4+ "0+% 4.##"2,3&'

2(!< !.#+ %+01.27+230 0$,7 3=+& $%+ 2.3 $-$%+ ./ $ K%.$7 4.24+%2 -,3= >? 1%.*,7+%0 $27 $2& /"3"%+ 0.5"3,.2 0=."57 3=+%+/.%+ K+ 1%.1.%3,.2$3+ 3. 3=+ ,00"+0 $27 4.24+%20'

Page 11: Direct Debit Facilities Management: Switching Providers · Direct Debit Facilities Management: Policy statement PS17/3 Payment Systems Regulator December 2017 4 2 Introduction Background

:2.019 :0;29 ?712<29203 !75780@059C D4<21E 39790@059 DF*GHI

D7E@059 FE390@3 &08-<794. :010@;0. ()*G N

2(!G >,2$55&Q .2+ 03$:+=.57+% 7,0$;%++7 -,3= ."% 4.245"0,.2 .2 3=+ ;%."270 3=$3 U ,2 ,30 +T1+%,+24+ U3=+ K"5: 4=$2;+ 1%.4+00 $27 9$40 %"5+0 .1+%$3+ 4.%%+435&'

2(!; f$*,2; 4.20,7+%+7 3=+ %+01.20+0 $27 =,;= 5+*+5 ./ 0"11.%3 -+ $%+ 4.2/,%#,2; ."% /,%03 1%.*,0,.2$5 4.245"0,.2' R+ +T1+43 3=+ GG .1+%$3.% 3. 4.20,7+% #$33+%0 0"4= $0 1%.4+00,2; 3,#+04$5+0Q 0+%*,4+ 5+*+50 $27 #,2,#"# 7$3$ 03$27$%70 $0 1$%3 ./ ,30 /"3"%+ 7+*+5.1#+23 15$20 /.% 3=+ 2+- $44%+7,3$3,.2 04=+#+ /.% >? 1%.*,7+%0'

;").1*,0 A= >, &," $7%)) +*18 ,"% .)2,04 /%,(*.*,0$3 2,023".*,0? @8$1 $%) 18) %)$.,0. -,% &,"% $0.+)%?

2(!H A=+ #$].%,3& ./ 3=+ %+01.27+230 $;%++7 -,3= ."% 0+4.27 1%.*,0,.2$5 4.245"0,.2^ 3=$3 ,2 5,;=3 ./ 3=+ 1.3+23,$5 +//+43 .2 4.#1+3,3,.2Q ,22.*$3,.2 $27 0+%*,4+L"0+%0 E$0 7+/,2+7 ,2 ."% >!9CH .K]+43,*+0 U0++ 1$;+ <FQ $ *.5"23$%& $11%.$4= ,0 "25,:+5& 3. $77%+00 ."% 4.24+%20' M203+$7 $ %"5+ 4=$2;+ -."57 K+ $ #.%+ 1%.1.%3,.2$3+ $27 +//+43,*+ $11%.$4= 3. $77%+00 3=+ 4.24+%20'

2(!A )25& .2+ >? 1%.*,7+% 7,0$;%++7 -,3= ."% 4.245"0,.2Q $0 ,3 4.20,7+%+7 3=$3 3=+ 4"%%+23 1%.4+00 -.%:0 -+55' M3 $50. .K]+43+7 3. #$:,2; $ 4=$2;+ 3=$3 ,3 4.20,7+%+7 -,55 2.3 =$*+ $2& .1+%$3,.2$5 +//+43'

2()F !3$:+=.57+%0 2.3+7 3=$3 $ *.5"23$%& $11%.$4= -."57 2.3 K+ 0,;2,/,4$235& 7,//+%+23 3. 3=+ +T,03,2; $%%$2;+#+230'

2()! )2+ >? 1%.*,7+% 2.3+7 3=$3 /.% 3=+ %"5+ 3. K+ +//+43,*+Q $77,3,.2$5 %+J",%+#+230 0=."57 K+ 15$4+7 /.% GGM0 3. K+ 4$1$K5+ ./ "0,2; H\GGM!'

2()) A-. 01.20.% K$2:0 2.3+7 3=$3 $ 9B!W %"5+ -,55 2++7 3. K+ 7%$/3+7 $27 ,#15+#+23+7 *+%& 4$%+/"55&' A=+ ,23%.7"43,.2 ./ $ %"5+ 4=$2;+ =$0 3=+ 1.3+23,$5 ./ 7,03.%3,2; 9B!WD0 %+5$3,.20=,1 -,3= 3=+ >? #$%:+3 $27 .3=+% 0+43.%0' M3 ,0 +00+23,$5 3=$3 $2& "2,23+27+7 4.20+J"+24+0 $%+ $*.,7+7Q K.3= /.% 3=+ >? 0+43.% $27 #.%+ -,7+5&' A=+%+ $50. 2++70 3. K+ 45$%,3& $K."3 =.- 4.#15,$24+ -,55 K+ +2/.%4+7'

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

2()1 R+ 2.3+ 3=$3 01.20.%,2; K$2:0 $%+ .K5,;+7 3. $7=+%+ 3. 3=+ %+J",%+#+230 ./ 3=+ 9$40 )1+%$3,.2$5 N.7+ ./ N.27"43 E-=,4= $%+ +2/.%4+$K5+ K& $ /.%#$5 9B!W ;.*+%2$24+ 1%.4+00F' 9B!W =$0 $7*,0+7 "0 3=$3 $ 2+- 0+43,.2 =$0 K++2 7%$/3+7 /.% ,20+%3,.2 ,23. 3=+ 6I([ N.7+ ./ N.27"43Q 01+4,/,4$55& 3. %+J",%+ 01.20.%,2; K$2:0 3. 1%.*,7+ +//+43,*+ 0"1+%*,0,.2 ./ >? 1%.*,7+%0'

2()< M2 %+/5+43,.2 ./ 3=+ 4.##+230 $27 0"11.%3 0=.-2 K& 3=+ #$].%,3& ./ %+01.27+230 -+ $%+ 4.2/,%#,2; ."% 0+4.27 1%.*,0,.2$5 4.245"0,.2' R+ +T1+43 3=+ GG .1+%$3.% 3. ;,*+ 4.20,7+%$3,.2 3. #$33+%0 %+;$%7,2; "0+ ./ H\GGM!' R+ $;%++ 3=$3 $53+%2$3,*+0 3. "0,2; 3=+ K"5: 4=$2;+ 1%.4+00 E0"4= $0 .K3$,2,2; 2+- GGM0F 0=."57 %+#$,2 $*$,5$K5+ 3. >? 45,+230 0=."57 3=+& 1%+/+% 3. "0+ 3=+#'

;").1*,0 B= C0 /$%1*2"3$%D 4, &," 18*06 18$1 *#/,.*1*,0 ,- $ %"3) 1, $28*)() ."28 $ /"%/,.) +,"34 "0-$*%3& %)$33,2$1) 3*$E*3*1& *0 $0& +$& F7*()0 18) E"36 28$07) 4))4G?

2()G A=+ #$].%,3& ./ 03$:+=.57+%0 7,7 2.3 4.20,7+% 3=$3 3=+ ,#1.0,3,.2 ./ 0"4= $ %"5+ -."57 "2/$,%5& %+$55.4$3+ 5,$K,5,3& ,2 $2& -$&' )2+ >? 1%.*,7+% $0:+7Q =.-+*+%Q -=$3 -."57 =$11+2 ,/ $ 01.20.%K$2: %+/"0+0 3. $;%++ 3. $ %+J"+03 3. "0+ 3=+ K"5: 4=$2;+ 1%.4+00 E3. 0"11.%3 3=+ 3%$20/+% ./ 2+- >? 45,+23 K"0,2+00F'

Page 12: Direct Debit Facilities Management: Switching Providers · Direct Debit Facilities Management: Policy statement PS17/3 Payment Systems Regulator December 2017 4 2 Introduction Background

:2.019 :0;29 ?712<29203 !75780@059C D4<21E 39790@059 DF*GHI

D7E@059 FE390@3 &08-<794. :010@;0. ()*G *)

2(); )3=+% 0"K#,00,.20 2.3+7 3=$3 3=+ K"5: 4=$2;+ 7++7 -."57 1$00 3=+ 5,$K,5,3& 3. 3=+ ,24.#,2; 1%.*,7+% $27 3$:+ ,3 $-$& /%.# 3=+ +T,03,2; 1%.*,7+%' A=+%+/.%+Q "25+00 3=+ 2+- 1%.*,7+% $27 ,30 01.20.% K$2: $%+ "24.#/.%3$K5+ -,3= 3=$3 5+*+5 ./ 5,$K,5,3&Q 3=+ %"5+ 4=$2;+ -."57 /$*."% 3=+ ."3;.,2; 1%.*,7+% ,2 3+%#0 ./ 5,$K,5,3& 3%$20/+% $27 0. -."57 2.3 K+ "2/$,%'

2()H \0,2; 3=+ K"5: 4=$2;+ 1%.4+00 #+$20 3=$3 3=+ 2+- >? 1%.*,7+% K+4.#+0 5,$K5+ /.% $2& ,27+#2,3& 45$,#0 %+5$3,2; 3. =,03.%,4 GG 4.55+43,.20 K& 3=+ .57 >? 1%.*,7+%' !1.20.% K$2:0 7,7 2.3 K+5,+*+ 3=$3 $ %"5+ 4=$2;+ -."57 %+0"53 ,2 $2 "2/$,% %+$55.4$3,.2 ./ 5,$K,5,3&' f.-+*+%Q .2+ K$2: 1.,23+7 ."3 3=$3 3=,0 -."57 2.3 =.57 3%"+ ,/ 3=+ 2+- >? 1%.*,7+% -$0 .K5,;+7 3. "0+ 3=+ K"5: 4=$2;+ 1%.4+00 /.% +*+%& >? 45,+23 3=$3 -$23+7 3. 0-,34=' A=+ 2+- >? 1%.*,7+% -."57 2++7 3. 4.20,7+% 3=+ K+2+/,30 ./ 3=+ K"5: 4=$2;+ 1%.4+00 $;$,203 3=+ 4.03 ./ ,2=+%,3,2; 3=+ 5,$K,5,3& /.% $55 GG0 1%+*,."05& 0"K#,33+7' A-. 01.20.% K$2:0 0";;+03+7 ,3 ,0 ,#1.%3$23 3. #$,23$,2 3=+ 4"%%+23 1%.4+7"%+0 /.% 3=+ 01.20.% K$2: ./ 3=+ 2+- >? 1%.*,7+% 3. $11%.*+ 3=+ K"5: 4=$2;+Q $0 3=+ 01.20.% -."57 K+4.#+ 5,$K5+ /.% ,27+#2,3& 45$,#0 ,/ 3=+ 2+- >? 1%.*,7+% -$0 ,2 7+/$"53'

2()A R+ 2.3+ 3=$3Q -=+2 3=+ K"5: 4=$2;+ 1%.4+00 ,0 "0+7Q 3=+ 01.20.% K$2: ./ 3=+ 2+- >? 1%.*,7+% "27+%-%,3+0 3=+ 2+- >? 1%.*,7+%D0 5,$K,5,3& ,2 %+01+43 ./ $55 +T,03,2; G,%+43 G+K,30' R+ 0++ 2. %+$0.2 1%+0+235& 3. %+J",%+ 3=+ ,24.#,2; >? 1%.*,7+%D0 01.20.% K$2: 3. $;%++ 3=+ K"5: 4=$2;+ 7++7 E,'+' 3=+ 01.20.% K$2: -."57 %+3$,2 7,04%+3,.2 ,2 3=,0 #$33+% U 0++ 1$%$;%$1= 8'6[F' f.-+*+%Q -+ -."57 +T1+43 3=+,% 4.##+%4,$5 ,23+%+030 3. K+ K%.$75& $5,;2+7 -,3= 3=+ ,24.#,2; >? 1%.*,7+%'

;").1*,0 H= >, &," $7%)) +*18 ,"% 18*%4 /%,(*.*,0$3 2,023".*,0D $04 18$1 18) ./)2*-*)4 /"%/,.) ,- 18) /%,/,.)4 %"3) *. $//%,/%*$1)? I3)$.) 7*() &,"% %)$.,0.J

2(2F A=+ #$].%,3& ./ 3=+ %+01.27+230 $;%++7 -,3= ."% 3=,%7 1%.*,0,.2$5 4.245"0,.2 3=$3 ,3 ,0 0+20,K5+ /.% "0 3. 01+4,/,4$55& %+J",%+ 9B!W 3. 4=$2;+ 3=+ GG %"5+0 3. $4=,+*+ $ 01+4,/,+7 1"%1.0+' A=+ 1"%1.0+ ./ 3=$3 %"5+ -."57 K+ 3. %+J",%+ +T,03,2; >? 1%.*,7+%0Q $43,2; ,2 3=+ 4."%0+ ./ K"0,2+00Q 3. "0+ 3=+ K"5: 4=$2;+ 1%.4+00 "25+00 4+%3$,2 +T4+13,.20 $115&' A-. >? 1%.*,7+%0 7,0$;%++7 -,3= 3=+ ,#1.0,3,.2 ./ 3=,0 %"5+Q 45$,#,2; 3=$3 3=+ #$%:+3 4"%%+235& -.%:0 -+55'

2(2! R+ $%+ 4.2/,%#,2; ."% 3=,%7 1%.*,0,.2$5 4.245"0,.2Q -=,4= -$0 $50. -,7+5& 0"11.%3+7 K& %+01.27+230' f.-+*+% -+ 2.3+ 3=$3 9B!W ,0 $5%+$7& ,23%.7"4,2; $ %"5+ %+J",%,2; 4.##+%4,$5 >? 1%.*,7+%0 3. K+4.#+ $44%+7,3+7 "27+% $ 2+- $44%+7,3$3,.2 04=+#+' A=+ 7+3$,5+7 7+0,;2 ./ 3=+ 2+- $44%+7,3$3,.2 04=+#+ -,55 K+ 4%"4,$5 3. +20"%,2; 3=$3 3=+ 4.24+%20 $%+ +//+43,*+5& $77%+00+7' R+ 7+$5 -,3= =.- -+ -,55 +20"%+ 3=,0 ,2 N=$13+% <'

;").1*,0 K= @8$1 2,0.*4)%$1*,0. .8,"34 5I!L $04 18) I!M 1$6) *01, $22,"01 *0 18) -,%#"3$1*,0 ,- 18) %"3) 28$07)?

2(2) A=,0 ,0 $ 0"##$%,0+7 5,03 ./ 4.20,7+%$3,.20 3=$3 %+01.27+230 0"K#,33+7V

• A=+ 5+2;3= $27 4.23+23 ./ "27+%5&,2; 4.23%$430 EK+3-++2 >? 1%.*,7+%0 $27 >? 45,+230F'

• R=+3=+% 3=+ >? 45,+23 .-+0 /"270 3. 3=+ 4"%%+23 >? 1%.*,7+%'

• A=+ %"5+ 0=."57 2.3 $55.- +T,03,2; 1%.*,7+%0 3. "0+ $2& 5..1=.5+0 3. 1%+*+23 4"03.#+%0 /%.# 0-,34=,2;'

• A=+ $K,5,3& ./ GGM0 3. K+ 3%$20/+%%+7 *,$ K"5: 4=$2;+ 7++7 E/.% +T$#15+Q 3=,0 ,0 2.3 1.00,K5+ -,3= 2.2LH\GGM! GGM0F'

• A=+ 7$3+ ./ 3=+ 3%$20/+% 0=."57 K+ $;%++7'

• M#15+#+23$3,.2 3,#+/%$#+0'

• H %+J",%+#+23 3=$3 3=+ ,24"#K+23 1%.*,7+% 0=."57 1%.*,7+ 3=+ 7$3$ ,2 $ 0+4"%+ $27 $11%.1%,$3+ /.%#$3 ,2 0"//,4,+23 3,#+ /.% 3=+ 0-,34= 3. .44"%'

Page 13: Direct Debit Facilities Management: Switching Providers · Direct Debit Facilities Management: Policy statement PS17/3 Payment Systems Regulator December 2017 4 2 Introduction Background

:2.019 :0;29 ?712<29203 !75780@059C D4<21E 39790@059 DF*GHI

D7E@059 FE390@3 &08-<794. :010@;0. ()*G **

• A=+ .57 >? 1%.*,7+% %+#$,20 S$3 %,0:D /.% ,27+#2,3& 45$,#0 %$,0+7 $;$,203 G,%+43 G+K,30 4.55+43+7 K& 3=+ .57 >? 1%.*,7+% 0=."57 3=+ 2+- >? 1%.*,7+% 7+/$"53'

• B%.*,0,.2 ,2 3=+ %"5+ 3=$3 ,/ 3=+ >? 45,+23 -,0=+0Q $27 ,0 $K5+Q 3. K+4.#+ $ 9$40 0+%*,4+ "0+% ,2 3=+,% .-2 %,;=3Q 3=+2 3=+ K"5: 4=$2;+ 1%.4+00 4$2 K+ "3,5,0+7 3. #.*+ GGM0 /%.# 3=+ >? 1%.*,7+% 3. 3=+ >? 45,+23 .24+ ,3 K+4.#+0 $ 9$40 0+%*,4+ "0+%'

• M/ 3=+%+ ,0 4.20,7+%+7 3. K+ #.%+ 3=$2 .2+ S45$00D ./ >? 1%.*,7+% 3=+2 $77,3,.2$5 7+/,2,3,.20 #$& K+ 2++7+7 3. ,7+23,/& +$4= S45$00D 0+1$%$3+5& E/.% +T$#15+Q 4.##+%4,$5 $27 2.2L4.##+%4,$5 >? 1%.*,7+%0F'

• A=+%+ #$& $50. K+ $77,3,.2$5 .1+%$3,.2$5P3+4=2,4$5 $01+430 3. 4.20,7+% U 0"4= $0 =.- >? 1%.*,7+%0 4$2 K+ ,7+23,/,+7 ,2 3=+ 9$40 0&03+# E1$%3,4"5$%5& ,/ $ %"5+ -+%+ 3. $115& 3. S4.##+%4,$5D 1%.*,7+%0 .25&F^ .% =.- $ 2+- 1%.*,7+%P01.20.% K$2: 4$2 $00+00 $2 >? 45,+23D0,27+#2,3& 45$,# 1+%/.%#$24+ K+/.%+ $;%++,2; 3=+ 3%$20/+% E$0 3=,0 $430 $0 $ ;",7+ 3. =,03.%,4 5,$K,5,3& 5+*+50F'

2(22 R+ +T1+43 3=+ GG .1+%$3.% 3. 3$:+ 3=+ $K.*+ ,23. $44."23 $0 ,3 7+*+5.10 3=+ 7+3$,5+7 %+J",%+#+230 ./ ,30 $44%+7,3$3,.2 04=+#+'

;").1*,0 N= >, &," $7%)) 18$1 $0& 0)+ %"3) .8,"34 E) $//3*2$E3) ,03& 1, 9: /%,(*4)%. +8, $%) I!I. /%,(*4*07 2,##)%2*$3 9: .)%(*2).?

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

2(2< )2+ 03$:+=.57+% 4$"3,.2+7 "0 3. 2.3 7+/,2+ 3=+0+ B!B0 3.. 2$%%.-5& $0 ,3 K+5,+*+7 3=$3 2.3 $55 9$40 K"%+$"T .% >? 1%.*,7+%0 $%+ $"3=.%,0+7 1$&#+230 ,203,3"3,.20' M3 $50. 0";;+03+7 -+ 0=."57 ,245"7+ 4.#1$2,+0 3=$3 1%.*,7+ K"275+7 0+%*,4+0Q -=,4= #,;=3 2.3 03%,435& /$55 -,3=,2 3=+ 7+/,2,3,.2 ./ S4.##+%4,$5 >? 0+%*,4+0D'

2(2G R+ $;%++ 3=$3 2+- %+J",%+#+230 .2 >? 1%.*,7+%0 %+;$%7,2; "0+ ./ 3=+ K"5: 4=$2;+ 1%.4+00 0=."57 .25& $115& 3. 4.##+%4,$5 >? 1%.*,7+%0' R+ 2.3+ 3=$3 3=+ >,2$24,$5 N.27"43 H"3=.%,3&D0 E>NHD0F$"3=.%,0$3,.2 %+J",%+#+230 7+1+27 .2 $2 ,27,*,7"$5 B!BD0 $43,*,3,+0Q $27 0. $%+ 7+3+%#,2+7 .2 $ 4$0+LK&L4$0+ K$0,0' B!B0 0=."57 0++: 3=+,% .-2 $11%.1%,$3+ ;",7$24+ K$0+7 .2 3=+,% $43"$5 $27 ,23+27+7 $43,*,3,+0'

;").1*,0 O= >, &," $7%)) +*18 18) /%,/,.)4 2,04*1*,0. $G 1, 4G *0 /$%$7%$/8 AJPO Q,- RIPNSPT %)7$%4*07 +8)0 $ 0)+ %"3) .8,"34 $//3&?

2(2; H55 3=+ 0"K#,00,.20 -+ %+4+,*+7 $;%++7 -,3= ."% 1%.1.0+7 4.27,3,.20 ./ -=+2 3=+ 2+- %"5+ 0=."57 $115&' )2+ %+01.27+23 3..: 3=+ *,+- 3=$3 3=+ 4.27,3,.20 $5%+$7& $115&Q 0. 3=+ %"5+ -."57 =$*+ 2. 0,;2,/,4$23 ,#1$43' A=+ 1%.1.0+7 4.27,3,.20 7,04"00+7 ,2 NB(OP( -+%+V

$' A=+ >? 45,+23 $27 ,30 1%.1.0+7 2+- >? 1%.*,7+% $;%++ 3=$3 "0+ ./ 3=+ K"5: 4=$2;+ 1%.4+00 ,0 3=+ 1%+/+%%+7 #+3=.7 3. +T+4"3+ $ 3%$20/+% ./ 0.#+ .% $55 %+5+*$23 GGM0'

K' A=+ 2+- >? 1%.*,7+%D0 01.20.% K$2: $;%++0 3. 0"11.%3 3=+ %+J"+03'

4' 9.3= 3=+ ."3;.,2; $27 2+- >? 1%.*,7+%0 $%+ %+;,03+%+7 ,2 3=+ 9$40 0&03+# $0 H\GGM! "0+%0'

7' Y. +T4+13,.20 $115&'

Page 14: Direct Debit Facilities Management: Switching Providers · Direct Debit Facilities Management: Policy statement PS17/3 Payment Systems Regulator December 2017 4 2 Introduction Background

:2.019 :0;29 ?712<29203 !75780@059C D4<21E 39790@059 DF*GHI

D7E@059 FE390@3 &08-<794. :010@;0. ()*G *(

2(2H )2+ 01.20.% K$2: 2.3+7 3=$3 /.% 3=+ %"5+ 3. -.%:Q K.3= >? 1%.*,7+%0 2++7 3. $K5+ 3. "0+ H\GGM!' M3 -$0 0";;+03+7 3=$3 9B!W 4."57 #$:+ 3=+ "0+ ./ H\GGM! #$27$3.%& /.% >? 1%.*,7+%0'

2(2A )2+ >? 1%.*,7+% %$,0+7 3=+ J"+03,.2 ./ -=$3 -."57 =$11+2 ,/ 3=+ >? 45,+23 $27 2+- >? 1%.*,7+%7. 2.3 K.3= $;%++ 3=$3 3=+ K"5: 4=$2;+ 1%.4+00 ,0 3=+ 1%+/+%%+7 .13,.2'

2(1F R+ +T1+43 3=+ GG .1+%$3.% 3. =$*+ %+;$%7 3. 3=+ $K.*+ 1%.1.0+7 4.27,3,.20 -=+2 7+*+5.1,2; ,30 7+3$,5+7 $44%+7,3$3,.2 04=+#+ %+J",%+#+230Q ,245"7,2; ;,*,2; 4.20,7+%$3,.2 3. 3=+ 0";;+03,.2 ./ #$:,2; H\GGM! #$27$3.%& /.% >? 1%.*,7+%0' C+;$%7,2; 8'8aQ 3=+ K"5: 4=$2;+ 1%.4+00 =$0 ,#15,4$3,.20 /.% K.3= 3=+ >? 45,+23 $27 3=+ 2+- >? 1%.*,7+%^ 3=+%+/.%+Q ."% *,+- ,0 3=$3 3=+ K"5: 4=$2;+ 1%.4+00 0=."57 2.3 K+ %+J",%+7 ,2 3=,0 04+2$%,.' )25& -=+2 K.3= ./ 3=.0+ 1$%3,+0 $;%++ 3. "0+ 3=+ K"5: 4=$2;+ 1%.4+00 7.+0 ,3 K+4.#+ #$27$3.%& /.% 3=+ ,24"#K+23 >? 1%.*,7+% 3. 0"11.%3 ,30 "0+'

;").1*,0 U= V%) 18)%) $0& ,18)% 2,04*1*,0. &," 18*06 .8,"34 $3., $//3&? I3)$.) )W/3$*0 &,"% X".1*-*2$1*,0 -,% 18).)J

2(1! !.#+ >? 1%.*,7+%0 1%.*,7+7 0";;+03,.20 /.% /"%3=+% 4.27,3,.20 3=$3 0=."57 $115& /.% 3=+ $115,4$3,.2 ./ $ 2+- %"5+' H 5,03 ./ 3=+ 0";;+03+7 4.27,3,.20 $27 3=+,% ]"03,/,4$3,.2 E,/ 1%.*,7+7F ,0 K+5.-V

• A-. >? 1%.*,7+%0 0";;+03+7 3=+ >? 45,+23 0=."57 =$*+ 3. /"5/,5 $2& 4.23%$43"$5 .K5,;$3,.20Q ,245"7,2; 3+%#Q K+/.%+ ,3 4."57 %+J"+03 $ K"5: 4=$2;+ 1%.4+00 3. 0-,34= 3. $2.3=+% 1%.*,7+%E0++ $50. 1$%$;%$1= 8'<<F'

• A-. >? 1%.*,7+%0 $50. 0";;+03+7 $ 2++7 /.% 45+$% 3,#+/%$#+0 $27 0+%*,4+ 5+*+5 $;%++#+230' N"%%+235&Q ."3;.,2; >? 1%.*,7+%0 #$& 7+5$& 0,;2,2; $27 1%.4+00,2; 3=+ K"5: 4=$2;+ 7++7 $27 3=+ $43"$5 K"5: 4=$2;+ 1%.4+00Q -=,4= ,2 3"%2 =$0 $ 2+;$3,*+ ,#1$43 .2 3=+ 0-,34=,2; 45,+23'

2(1) )2+ 01.20.% K$2: 0";;+03+7 3=$3 9B!W 0=."57 4.20,7+% 3=+ ,#1$43 ./ $2& >? 1%.*,7+% .1+%$3,2; $0 $2 S,27,%+43D 0+%*,4+ "0+% E,'+' 0"K#,33,2; GG0 $27P.% GGM0 *,$ $ 9$40 K"%+$" 0+%*,4+ 1%.*,7+%F' M30";;+03+7 3=$3 9B!W 0=."57 7+3+%#,2+ =.- #$2& >? 1%.*,7+%0 0"K#,3 GG0 7,%+435& $27 "0+ H\GGM!Q $27 =.- #$2& 0"K#,3 +,3=+% 7,%+435& .% ,27,%+435& -,3=."3 "0,2; H\GGM!' A=+ 03$:+=.57+% /+53 3=,0 -."57 =+51 ,2 7+3+%#,2,2; 3=+ +//+43,*+2+00 ./ 3=+ 1%.1.0+7 %"5+'

2(12 R+ +T1+43 3=+ GG .1+%$3.% 3. 3$:+ 3=+ $K.*+ ,23. $44."23 $0 ,3 7+*+5.10 3=+ 7+3$,5+7 %+J",%+#+230 ./ ,30 $44%+7,3$3,.2 04=+#+'

;").1*,0 PY= >, &," 2,0.*4)% )$28 ,% $0& ,- 18) ."77).1)4 )W2)/1*,0. 4*.2"..)4 *0 /$%$7%$/8. AJPU $04 AJ<Y Q,- RIPNSPT 1, E) ($3*4 7%,"04. -,% $0 ,"17,*07 9: /%,(*4)% 1, +*188,34 *1. 2,0.)01 1, $ E"36 28$07) /%,2).. %)Z").1 1, ."//,%1 ,0) ,- *1. 9: 23*)01. .+*128*07 *1. E".*0).. 1, $0,18)% 9: /%,(*4)%? I3)$.) /%,(*4) X".1*-*2$1*,0 -,% &,"% (*)+.J

2(11 M2 ;+2+%$5 03$:+=.57+%0 7,7 2.3 $;%++ 3=$3 3=+ 1.3+23,$5 +T4+13,.20 7,04"00+7 ,2 1$%$;%$1=0 8'(a 3.8'6I ./ NB(OP( 1%.*,7+ *$5,7 ;%."270 /.% $2 ."3;.,2; >? 1%.*,7+% 3. -,3==.57 ,30 4.20+23 3. $ K"5: 4=$2;+ 1%.4+00 %+J"+03' )3=+% 1.3+23,$5 +T4+13,.20 0";;+03+7 -+%+V

A=+ ."3;.,2; >? 1%.*,7+% =$*,2; $ 4.23,2;+23 5,$K,5,3& 3. ,30 01.20.% K$2:'$'

R=+%+ 3=+ GGM0 3. K+ 3%$20/+%%+7 =$*+ K++2 .K3$,2+7 /.% #"53,15+ 1"%1.0+0' >.% ,203$24+Q K'-=+%+ 3=+ >? 1%.*,7+% ,0 4.55+43,2; #.2+& /%.# $ 1$&+% "27+% $ 0,2;5+ GGM ,2 %+5$3,.2 3. #.%+ 3=$2 .2+ 1%.7"43 .% 0+%*,4+Q $27 .25& .2+ ./ 3=+ 1%.7"430 .% 0+%*,4+0 ,0 3=+ 0"K]+43 ./ 3=+ ,23+27+7 0-,34='

R=+%+ 3=+%+ ,0 $2 .2;.,2; 4.##+%4,$5 7,01"3+Q 1$&#+23 $%%+$%0 .% .3=+% 0+%*,4+L%+5$3+74',00"+0 K+3-++2 3=+ >? 45,+23 $27 ,30 4"%%+23 >? 1%.*,7+%'

Page 15: Direct Debit Facilities Management: Switching Providers · Direct Debit Facilities Management: Policy statement PS17/3 Payment Systems Regulator December 2017 4 2 Introduction Background

:2.019 :0;29 ?712<29203 !75780@059C D4<21E 39790@059 DF*GHI

D7E@059 FE390@3 &08-<794. :010@;0. ()*G *I

2(1< )2+ 01.20.% K$2: 4.20,7+%+7 3=$3 EKF ,0 $ *$5,7 ;%."27 /.% $2 ."3;.,2; >? 1%.*,7+% 3. -,3==.57 4.20+23 3. $ K"5: 4=$2;+ 1%.4+00 %+J"+03' A=+ 03$:+=.57+% 0";;+03+7 3=$3 3=+0+ 3&1+ ./ $%%$2;+#+230 $5%+$7& +T,03 E-=+%+ $2 >? 1%.*,7+% ,0 4.55+43,2; #.2+& /%.# $ 1$&+% "27+% $ 0,2;5+ GGM ,2 %+5$3,.2 3. #.%+ 3=$2 .2+ 1%.7"43 .% 0+%*,4+FQ $27 ,3 -."57 K+ *+%& 4=$55+2;,2; 3. 0+1$%$3+ 3=+ 4.55+43,.2 1"%1.0+0 "27+% $ 0,2;5+ 9$40 !\Y' f.-+*+% ,3 $50. 0$,7 3=,0 1%$43,4+ 0=."57 1+%=$10 K+ K$%%+7 ,2 3=+ %"5+0 /.% /"3"%+ GG 0+3L"10'

2(1G H 2"#K+% ./ .3=+% 03$:+=.57+%0 4.##+23+7 .2 E4F $27 $;%++7 3=$3 4.##+%4,$5 ,00"+0 0=."57 K+ #$2$;+7 7,%+435& K+3-++2 >? 1%.*,7+%0 $27 3=+,% 45,+230' )2+ 01.20.% K$2: $50. 0$,7 3=$3 4.20,7+%$3,.2 0=."57 K+ ;,*+2 3. +20"%+ 3=$3 04=+#+ 7.+0 2.3 $55.- $2 >? 45,+23 3. 0-,34= 3.. /%+J"+235& K+3-++2 >? 1%.*,7+%0Q 5+$*,2; "2%+0.5*+7 4.23%$43"$5 ,00"+0 $3 +$4= 0-,34='

2(1; >,2$55&Q .2+ >? 1%.*,7+% 0";;+03+7 3=$3 $55 3=+ 0";;+03+7 +T4+13,.20 1%.*,7+ *$5,7 ;%."270 /.% 3=+ %+/"0$5 ./ 3=+ "0+ ./ 3=+ K"5: 4=$2;+ 1%.4+00' A=+ 03$:+=.57+% 4.20,7+%+7 3=$3 45,+230 #$& =$*+ K+2+/,3+7 /%.# 5.-+% 4=$%;+0 .% 5.-+% 0+3 "1 4.030 ,2 +T4=$2;+ /.% 0+33,2; $ #,2,#"# 4.23%$43 .% 2.3,4+ 1+%,.7' M/ 3=+ 2+- %"5+ $//+430 3=+0+ 4.23%$430 3=+2 >? 1%.*,7+%0 -."57 K+ "2$K5+ 3. .//+% 3=+0+ 7+$50'

2(1H R+ +T1+43 3=+ GG .1+%$3.% 3. 4.20,7+% -=$3 #,;=3 K+ ]"03,/,$K5+ +T4+13,.20 $0 ,3 7+*+5.10 3=+ 7+3$,5+7 %+J",%+#+230 ./ ,30 $44%+7,3$3,.2 04=+#+' f.-+*+% -+ +T1+43 3=+0+ 3. K+ :+13 3. $ #,2,#"# 0. $0 3. %+#.*+ 1.3+23,$5 K$%%,+%0 3. 0-,34=,2;'

;").1*,0 PP= V%) 18)%) $0& ,18)% )W2)/1*,0. 18$1 .8,"34 E) $//3*)4 1, 18) %"3)? I3)$.) /%,(*4) X".1*-*2$1*,0 -,% &,"% (*)+.J

2(1A A=+ #$,2 +T4+13,.2 =,;=5,;=3+7 K& %+01.27+230 %+5$3+7 3. 3=+ 4.##+%4,$5 4.23%$430 K+3-++2 >? 1%.*,7+%0 $27 3=+,% 4"03.#+%0' >.% +T$#15+Q ,/ 3=+ 3-. 1$%3,+0 =$*+ $;%++7 $3 3=+ K+;,22,2; ./ 3=+,% 4.23%$43 3=$3 3=+& -,55 2.3 "0+ 3=+ K"5: 4=$2;+ 1%.4+00 ,/ 3=+ 45,+23 -$230 3. 0-,34=Q 3=+2 3=,0 %"5+ 0=."57 2.3 $115&'

2(<F !+*+2 ."3 ./ 3=+ +5+*+2 %+01.20+0 0$,7 3=$3 3=+& 7,7 2.3 3=,2: 3=$3 3=+%+ -+%+ $2& +T4+13,.20 3=$3 0=."57 K+ $115,+7 3. 3=+ %"5+' A=%++ 7,7 2.3 1%.*,7+ $2& 4.##+230 .2 3=+ J"+03,.2'

2(<! )2+ 01.20.% K$2: 0";;+03+7 3=%++ $77,3,.2$5 +T4+13,.20V

• c*,7+24+ ./ %+$0.2$K5& 0"01+43+7 /%$"7"5+23 $43,*,3&'

• A=+ >? 45,+23 K+,2; 0"K]+43 3. 4%+7,3 $43,.2 0"4= $0 $2 $115,4$3,.2 /.% $7#,2,03%$3,.2'

• H 0,;2,/,4$23 4=$2;+ 3. 3=+ 1%.7"43 .//+%+7 K& 3=+ >? 45,+23 3=$3 #,;=3 %+0"53 ,2 $ 0,;2,/,4$23 ,24%+$0+ ,2 GG ,27+#2,3& 45$,#0'

;").1*,0 P<= >, &," 8$() $0& 2,##)01. ,% ."77).1*,0. %)7$%4*07 18) %)3$1*() E)0)-*1. $04 4*.$4($01$7). %)7$%4*07 18) 1+, ,/1*,0.= [$\ F0, 28$07)G $04 [E\ F0)+ 5$2. /$%1*2*/$01 2$1)7,%&G? @8*28 4, &," 18*06 *. 3*6)3& 1, E) #,.1 )--)21*()D $04 +8&?

2(<) C+01.20+0 3. 3=,0 J"+03,.2 =$*+ 2.3 1%.*,7+7 $ 45+$% 1%+/+%+24+ .2 3=+ ,#15+#+23$3,.2 $11%.$4= .13,.20' M2 ;+2+%$5Q 01.20.% K$2:0 $;%++7 3=$3 $2 $44%+7,3$3,.2 04=+#+ -."57 K+ 3=+ #.03 +//+43,*+ -$& ./ %+#+7&,2; 3=+ 0,3"$3,.2' A-. >? 1%.*,7+%0 4.20,7+%+7 3=$3 3=+ S2. 4=$2;+D.13,.2 ,0 3=+ #.03 $11%.1%,$3+' A=%++ >? 1%.*,7+%0 0"11.%3+7 $ %"5+ 4=$2;+ ,203+$7 ./ $2 $44%+7,3$3,.2 04=+#+' )2+ >? 1%.*,7+% 7,7 2.3 4.##+23' )2+ >? 1%.*,7+% 0"11.%3+7 .13,.2 EKF'

2(<2 )2+ >? 1%.*,7+% 0";;+03+7 3=$3 3=+ K+03 .13,.2 ,0 2+,3=+% .13,.2 E$F 2.% .13,.2 EKF' M203+$7Q $ %"5+ 4=$2;+ -."57 K+ 3=+ #.03 $11%.1%,$3+ $43,.2 3. +20"%+ 3=$3 $55 1$%3,4,1$230 :2.- -=$3 3. +T1+43'

2(<1 H2.3=+% >? 1%.*,7+% =,;=5,;=3+7 3=+ 7,//,4"53& ,2 4.#1$%,2; 3=+ 3-. .13,.20 -,3=."3 /"55 1%.1.0$50' f.-+*+%Q ,3 $50. 2.3+7 3=$3 ,3 /+53 4.#/.%3$K5+ -,3= ,30 01.20.% K$2: +2/.%4,2; 3=+ 04=+#+ %"5+0 0. /$%'

Page 16: Direct Debit Facilities Management: Switching Providers · Direct Debit Facilities Management: Policy statement PS17/3 Payment Systems Regulator December 2017 4 2 Introduction Background

:2.019 :0;29 ?712<29203 !75780@059C D4<21E 39790@059 DF*GHI

D7E@059 FE390@3 &08-<794. :010@;0. ()*G *K

2(<< H 7,//+%+23 >? 1%.*,7+% 4.20,7+%+7 3=$3 3=+%+ $%+ #+%,30 3. 4%+$3,2; $ 2+- 9$40 $44%+7,3$3,.2 04=+#+ /.% 3=+ 1%.*,0,.2 ./ >? 0+%*,4+0' M3 2.3+7 3=$3Q -,3= +,3=+% 3=+ 4"%%+23 $%%$2;+#+230 .% $ 2+- $44%+7,3$3,.2 04=+#+Q 9B!W -,55 2++7 3. #.2,3.% 3=+ K"5: 4=$2;+ 1%.4+00 $27 3=+ 2+- %"5+E0F ;.*+%2,2; ,3' 9B!W $5%+$7& .1+%$3+0 $ 0,#,5$% 1%.4+00 /.% 4.#15,$24+ -,3= ,30 %"5+0 .2 7.4"#+23$3,.2Q $43,.2,2; %+1.%30 $27 .3=+% $%+$0Q $0 7+04%,K+7 ,2 N=$13+% [ ./ 3=+ 4"%%+23 !\XC' N=$13+% a ./ 3=+ !\XC 7+3$,50 3=$3 $ 0+%*,4+ "0+% 4$2 K+ 3+%#,2$3+7 /%.# 3=+ 04=+#+Q -=,4= -."57 K+ 3=+ "53,#$3+ 7+3+%%+23 /.% $2 .%;$2,0$3,.2 -=,4= =$0 K",53 ,30 K"0,2+00 .2 K+,2; $ >? 1%.*,7+%'

2(<G A=+ %+01.27+23 4.20,7+%+7 3=$3 3=+ +T,03,2; $44%+7,3$3,.2 1%.4+00 /.% 9$40 K"%+$"T ,0 J",3+ .2+%."0Q .2 $ 3=%++ &+$%5& 4&45+' M3 +03$K5,0=+0 $27 3=+2 4=+4:0 .2 1%.4+00+0 $27 1%.4+7"%+0Q $27 -."57 ,2 3=+ 4$0+ ./ >? 1%.*,7+%0 1+%=$10 +03$K5,0= $ K$0+5,2+ ./ 03$27$%70Q =.-+*+% $44.%7,2; 3. 3=,0 >? 1%.*,7+% $44%+7,3$3,.2 .2 ,30 .-2 4."57 2.3 +20"%+ 3=$3 ,00"+0 -,3= K"5: 3%$20/+%0 -."57 2.3 03,55 .44"%'

2(<; A=+ 03$:+=.57+% 4.20,7+%+7 3=$3 3=+%+ ,0 2. 2++7 /.% $ 0+1$%$3+ $44%+7,3$3,.2 04=+#+Q $0 3=+ !\XC $5%+$7& 1%.*,7+0 0"//,4,+23 $K,5,3& 3. %+#.*+ $ 0+%*,4+ "0+% /%.# 3=+ 04=+#+ ,/ 3=+ 9B!W K.$%7 %+$0.2$K5& K+5,+*+0 3=$3V

• G,%+43 G+K,3 .1+%$3,.20 $%+ K+,2; 4$%%,+7 ."3 ,2 $ #$22+% -=,4= 4.203,3"3+0 $2 $K"0+ ./ 3=+ 04=+#+ .% $//+430 3=+ ,23+;%,3& ./ 3=+ 04=+#+ .% $%+ K+,2; 4$%%,+7 ."3 -,3=."3 7"+ %+;$%7 3. 3=+ ,23+%+03 ./ 1$&+%0

• 3=+%+ ,0 +*,7+24+ 3=$3 %"5+0 $27 1%.4+7"%+0 7+3$,5+7 ,2 3=+ !\XC $%+ K+,2; 7+5,K+%$3+5& ,;2.%+7

2(<H M2 ;+2+%$5Q 01.20.% K$2:0 -+%+ ,2 $;%++#+23 3=$3 $2 $53+%2$3,*+ $11%.$4= ./ $7.13,2; $ 2+- $44%+7,3$3,.2 04=+#+ /.% >? 1%.*,7+%0 E-=,4= 9B!W =$7 $5%+$7& 03$%3+7 4.20"53,2; 03$:+=.57+%0 .2 $3 3=+ 3,#+ ./ ."% NB(OP(F -."57 K+ 3=+ #.03 +//+43,*+ -$& ./ %+#+7&,2; 3=+ 0,3"$3,.2'

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

2(GF H2.3=+% 01.20.% K$2: 4.##+23+7 .2 3=+ $7*$23$;+0 ./ $2 $44%+7,3$3,.2 04=+#+ $27 3=$3 3=+& 7,7 2.3 4.20,7+% 3=$3 3=,0 $11%.$4= -."57 $43 $0 $ K$%%,+% 3. 3=+%+ K+,2; $ 4.23%$43"$5 %+5$3,.20=,1 K+3-++2 9B!W $27 >? 1%.*,7+%0'

2(G! H 3=,%7 01.20.% K$2: $50. $;%++7 3=$3 .13,.2 EKF ,0 1%+/+%$K5+' M3 4.20,7+%+7 3=$3 $2 $44%+7,3$3,.2 04=+#+ -."57 1%.*,7+ #.%+ 04.1+ /.% $2 +//+43,*+ 0.5"3,.2'

2(G) R+ 2.3+ 3=$3 9B!W =$0 +#K$%:+7 .2 7+*+5.1,2; $ 2+- $44%+7,3$3,.2 04=+#+ -=,4= -,55 ,2*.5*+ 3=+ 4%+$3,.2 ./ $ 7,%+43 4.23%$43"$5 5,2: K+3-++2 $ 4.##+%4,$5 >? 1%.*,7+% $27 3=+ GG .1+%$3.%'

;").1*,0 PA= >, &," 8$() $0& 2,##)01. ,% ."77).1*,0. %)7$%4*07 18) E).1 1*#) 1, *#/3)#)01 $0& 28$07).?

2(G2 M2 ;+2+%$5Q %+01.20+0 3. 3=,0 J"+03,.2 0++# 3. $;%++ 3=$3 3=+ %"5+ 4=$2;+ 0=."57 K+ ,#15+#+23+7 0..2+% %$3=+% 3=$2 5$3+%' A-. %+01.27+230 0";;+03+7 3=$3 3=+ %"5+ 0=."57 3$:+ +//+43 ,2 Z$2"$%& 6I([Q ,2 5,2+ -,3= 3=+ $22"$5 %+*,+- ./ !\XC' A=%++ .3=+% %+01.27+230 0";;+03+7 3=$3 3=+ %"5+ 4=$2;+ 0=."57 3$:+ 15$4+ $0 0..2 $0 1.00,K5+' A=%++ 03$:+=.57+%0 7,7 2.3 4.##+23 .2 3=+ J"+03,.2' )25& .2+ 0";;+03+7 3=$3 3=+ ,#15+#+23$3,.2 0=."57 3$:+ 3,#+ $27 K+ 0"K]+43 3. +//+43,*+ 1%,.%,3,0$3,.2 $27 0+J"+24,2; ,2 5,2+ -,3= 3=+ =,;= 5+*+5 ./ %+;"5$3.%& $27 #$27$3.%& 1$&#+23 %+5$3+7 4=$2;+ ,2 3=+ ,27"03%& E/.% +T$#15+Q 3=+ 4%+$3,.2 $27 -.%: ./ 3=+ Y+- B$&#+23 !&03+#0 )1+%$3.%Q 3=+ B$&#+230 !3%$3+;& >.%"#Q $27 \` >,2$24+F' A=+ %+01.27+23 0";;+03+7 3=$39B!W 0=."57 4.20,7+% 3=,0 4=$2;+ $0 $ 5.2; 3+%# .*+%=$"5 $27 1.3+23,$55& 5..: 3. ,#15+#+23 ,3 $0 1$%3 ./ 3=+ >+K%"$%& 6I(a 9$40 %"5+ 4=$2;+0'

Page 17: Direct Debit Facilities Management: Switching Providers · Direct Debit Facilities Management: Policy statement PS17/3 Payment Systems Regulator December 2017 4 2 Introduction Background

:2.019 :0;29 ?712<29203 !75780@059C D4<21E 39790@059 DF*GHI

D7E@059 FE390@3 &08-<794. :010@;0. ()*G *+

@9<# 7$%"+"5-

1(! R+ =$*+ 7+4,7+7 3. #$:+ "0+ ./ ."% 1.-+%0 "27+% 0+43,.2 @< ./ >!9CH 3. %+J",%+ 3=+ .1+%$3.% ./ 3=+ 9$40 1$&#+23 0&03+# G,%+43 G+K,3 EGGF 04=+#+ 3. 7+*+5.1 $ B!CL$11%.*+7 15$2 3. $77%+00 3=+ 4.24+%20 -+ 0+3 ."3 ,2 ."% 4.20"53$3,.2 1$1+% NB(OP(' R+ -,55 $50. "0+ ."% 1.-+%0 3. 7,%+43 ,3 ,2 %+5$3,.2 3. 3=+ 4=$2;+0'

1() >.55.-,2; ."% 4.20"53$3,.2 $27 3$:,2; ,23. $44."23 3=+ 0"K#,00,.20 -+ %+4+,*+7 E$27 3=+ %+5+*$23 4.20,7+%$3,.20FQ -+ 4.245"7+ 3=$3V

$' A=+ 4"%%+23 $K,5,3& ./ +T,03,2; >? 1%.*,7+%0 3. $//+43 3=+ 0-,34=,2; 4.030 ./ .3=+% 1%.*,7+%0 $27 45,+230 ,0 2.3 $11%.1%,$3+'

K' H *.5"23$%& $11%.$4= ,0 "25,:+5& 3. $77%+00 3=+ 4.24+%20 U 0. $ %"5+ 4=$2;+ 3. #$:+ 3=+ K"5: 4=$2;+ 1%.4+00 4.#1"50.%& /.% >? 1%.*,7+%0 E-=+2 $2 >? 45,+23 -$230 3. 0-,34=FQ 1%.*,7+7 3=$3 4+%3$,2 4.27,3,.20 $%+ #+3Q $11+$%0 3. K+ $ 1%.1.%3,.2$3+ $27 +//+43,*+ $11%.$4= 3. $77%+00 3=+ 4.24+%20'

4' H 0+20,K5+ $11%.$4= ,0 /.% 3=+ B!C 3. 01+4,/,4$55& %+J",%+ 9B!W 3. 4=$2;+ 3=+ GG %"5+0 3. $4=,+*+ $ 01+4,/,+7 1"%1.0+' A=,0 -."57 K+ 3. %+J",%+ +T,03,2; >? 1%.*,7+%0Q $43,2; ,2 3=+ 4."%0+ ./ K"0,2+00Q 3. "0+ 3=+ K"5: 4=$2;+ 1%.4+00 "25+00 4+%3$,2 +T4+13,.20 $115&'

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

1(1 M2 5,;=3 ./ ."% 4.20"53$3,.2 $27 $ 2"#K+% ./ 7,04"00,.20 -,3= "0Q 9B!W ,0 #$:,2; 4=$2;+0 3. 3=+ 9$40 04=+#+ %"5+0' M3 -,55 $77 $ 2+- %"5+ ,23. 3=+ !+%*,4+ \0+%D0 X",7+ $27 C"5+0 3. 3=+ G,%+43 G+K,3 04=+#+ -,3= +//+43 /%.# ( Z$2"$%& 6I([' A=,0 %"5+ -,55 %+J",%+ 4.##+%4,$5 >? 1%.*,7+%0 3.K+4.#+ $44%+7,3+7 "0,2; $ 2+-Q 1"%1.0+5& 4%+$3+7 $44%+7,3$3,.2 04=+#+Q -=,4= -,55 7%$- .2 :2.-5+7;+ $27 #$3+%,$50 %+5$3,2; 3. 9B!WD0 +T,03,2; $44%+7,3$3,.2 04=+#+0' A=+0+ ,245"7+V

$' 9$40 H11%.*+7 9"%+$"T !4=+#+ E9H9!FQ -=,4= 4.*+%0 $11%.T,#$3+5& OOI .%;$2,0$3,.20 3=$3 0"K#,3 3%$20$43,.20 3=%.";= 9$40 .2 K+=$5/ ./ 3=,%7 1$%3,+0 E/.% +T$#15+Q 1$&%.55 0+%*,4+ 1%.*,7+%0F' 9B!W =$0 ,201+43.%0 -=. 1+%,.7,4$55& %+*,+- $55 K"%+$"T S3. +20"%+ 3=+& #++3 3=+ 03$27$%70 0+3 K& 3=+ 04=+#+D'

K' 9$40 H44%+7,3+7 H;;%+;$3.% !+%*,4+Q 4.*+%,2; 1$%3,+0 3=$3 1%.*,7+ B!B0 -,3= 3+4=2,4$5 $44+00 +2$K5,2; 3=+# 3. 0"K#,3 $27 %+4+,*+ 1$&#+230 3. $27 /%.# 9$40'

4' 9$40 H11%.*+7 !./3-$%+ !+%*,4+ E9H!!FQ /.% 0"115,+%0 $27 7+*+5.1+%0 ./ 0./3-$%+ 3=$3 +2$K5+0 9$40 "0+%0 3. 4.22+43 3. $27 "0+ 3=+ 9$40 0+%*,4+0' 9B!W $00+00+0 3=+0+ 1%.7"430 $27 0+%*,4+0 $;$,203 $ 0+%,+0 ./ 03$27$%70 $27 4%,3+%,$'

Page 18: Direct Debit Facilities Management: Switching Providers · Direct Debit Facilities Management: Policy statement PS17/3 Payment Systems Regulator December 2017 4 2 Introduction Background

:2.019 :0;29 ?712<29203 !75780@059C D4<21E 39790@059 DF*GHI

D7E@059 FE390@3 &08-<794. :010@;0. ()*G *L

1(< 9B!W ,0 4"%%+235& 7+0,;2,2; 3=+ 2+- $44%+7,3$3,.2 04=+#+' f.-+*+%Q ,3 =$0 3.57 "0 3=$3 ,3 $23,4,1$3+0 3=+ /.55.-,2; /+$3"%+0V

• A=+ $44%+7,3$3,.2 1%.4+00 -,55 K+ ,2,3,$3+7 K& $ 01.20.% K$2: 4.2/,%#,2; -,3= ,30 >? 1%.*,7+% 4"03.#+% 3=$3 ,3 1%.*,7+0 >? 0+%*,4+0 .2 $ 4.##+%4,$5 K$0,0 3. 3=,%7 1$%3& 45,+230'

• A=+ 4.##+%4,$5 >? 1%.*,7+%0 -,55 K+ %+J",%+7 3. +23+% ,23. $ 03$27$%7 $44%+7,3$3,.2 $;%++#+23 -,3= 9B!W'

• \27+% 3=+ 03$27$%7 $44%+7,3$3,.2Q ."3;.,2; >? 1%.*,7+%0 -,55 $;%++ 3. "0+ 3=+ K"5: 4=$2;+ 1%.4+00 ,/ $ 4"03.#+% E>? 45,+23F %+J"+030 ,3 ,2 .%7+% 3. 0-,34= 3. $2 $53+%2$3,*+ 1%.*,7+% E.% 3. K+4.#+ $ 9$40 0+%*,4+ "0+% ,2 ,30 .-2 %,;=3 U 0++ 1$%$;%$1= 8'86FQ $0 5.2; $0 4+%3$,2 %+5+*$23 4.27,3,.20 $%+ #+3' R+ +T1+43 3=+ %+5+*$23 4.27,3,.20 $27 $2& +T4+13,.20 3=$3 #$& $115& 3. K+ 2. #.%+ 3=$2 ,0 2+4+00$%& 3. /$4,5,3$3+ $2 +//+43,*+ 0-,34=,2; 1%.4+00'

• A=+ 03$27$%7 $44%+7,3$3,.2 $;%++#+23 -,55 $50. ,245"7+V

o 1%.*,0,.20 4.*+%,2; 3=+ $44%+7,3$3,.2 1%.4+00

o $2& $44%+7,3$3,.2 /++0 1$&$K5+

o $ 7,01"3+ 1%.4+00 3=$3 -,55 1%.*,7+ /.% +,3=+% 3=+ ,24.#,2; >? 1%.*,7+% .% 3=+ >? 45,+23 3. 4=$55+2;+ $2& /$,5"%+ 3. "0+ 3=+ K"5: 4=$2;+ 1%.4+00

o 1%.*,0,.20 /.% 0$243,.20 3. K+ $115,+7 ,/ $2 $44%+7,3+7 1$%3& 7.+0 2.3 4.#15& -,3= 3=+ $;%++#+23

1(G 9B!W $50. 0";;+03+7 3=$3 $2 $44%+7,3$3,.2 04=+#+ $11%.$4= 4."57 1%.*,7+ -,7+% K+2+/,30 /.% 0+%*,4+L"0+%0 E$0 7+/,2+7 ,2 ."% >!9CH .K]+43,*+0 U 0++ 1$;+ <FQ ,2 3=$3 ,3 +2$K5+0 3=+ 7+*+5.1#+23 $27 ,23%.7"43,.2 ./ 2+- 0+%*,4+ 5+*+5 %+J",%+#+230 $27 #,2,#"# 7$3$ 03$27$%70 /.% $44%+7,3+7 1$%3,+0'

1(; H0 7,04"00+7 ,2 1$%$;%$1= ('@Q 9B!W =$0 $5%+$7& 3$:+2 03+10 3. 4=$2;+ 3=+ G,%+43 G+K,3 %"5+0 3. ,23%.7"4+ $ 2+- %+J",%+#+23 .2 4.##+%4,$5 >? 1%.*,7+%0 3. K+4.#+ $44%+7,3+7Q 0. -+ =$*+ 7+4,7+7 2.3 3. "0+ ."% %"5+0 4=$2;+ 1.-+%0 "27+% 0+43,.2 @@ ./ >!9CH' R+ -+54.#+ 3=+ ,2,3,$3,*+0 3=$3 9B!W =$0 K++2 1"%0",2; ,2 .%7+% 3. $77%+00 3=+ 1%.K5+#0 -+ 4.20"53+7 .2' f.-+*+%Q $3 3=+ 3,#+ ./ -%,3,2; -+ =$*+ 2.3 &+3 %+4+,*+7 0"//,4,+23 $00"%$24+ $K."3 9B!WD0 ,23+27+7 $11%.$4= 3. K+ 0$3,0/,+7 3=$3 ,3 -,55 K+ ,#15+#+23+7 ,2 $ 3,#+5& #$22+% 3. $77%+00 3=+ 4.24+%20 -+ 4.20"53+7 .2'

1(H A=+%+/.%+Q /.55.-,2; ."% 4.20"53$3,.2Q -+ =$*+ 7+4,7+7 3. +T+%4,0+ ."% 1.-+%0 "27+% 0+43,.2 @< EG,%+43,.20F ./ >!9CH 3. ,00"+ $ 01+4,/,4 7,%+43,.2 3. 3=+ .1+%$3.% ./ 3=+ G,%+43 G+K,3 04=+#+' )"%7,%+43,.2 -,55 %+J",%+ 3=+ .1+%$3.% 3.V

• +20"%+ 3=$3 >? 0+%*,4+ 1%.*,7+%0 3=$3 -,0= 3. 7. 0. 4$2 "0+ 3=+ 9$40 K"5: 4=$2;+ 1%.4+00 3. =+51 45,+230 -=. -,0= 3. 0-,34= 3.P/%.# $2.3=+% 1%.*,7+%

• 0"K#,3 /.% ."% $11%.*$5 $ 15$2 $27 3,#+3$K5+ 3. $4=,+*+ 3=$3 ."34.#+ 3=%.";= 3=+ $53+%2$3,*+ $11%.$4=

1(A R+ $%+ $-$%+ 3=$3 3=+ 7+3$,5+7 7+0,;2 ./ 3=+ $44%+7,3$3,.2 04=+#+ -,55 K+ 4%"4,$5 3. +20"%,2; 3=$3 3=+ 4.24+%20 $%+ +//+43,*+5& $77%+00+7' H0 2.3+7 ,2 1$%$;%$1= ('(8Q 9B!W =$0 1%+*,."05& =$7 .11.%3"2,3& 3. $77%+00 3=+ 4.24+%20' R+ 3=+%+/.%+ 4.245"7+ 3=$3 "0,2; ."% 1.-+%0 ,2 3=+ -$& 0+3 ."3 -,55 ;,*+ 03$:+=.57+%0 4+%3$,23& 3=$3 3=+ 4.24+%20 -,55 K+ %+#+7,+7Q $27 -,55 1%.#.3+ 3=+ 3,#+5& $27 +//+43,*+ ,#15+#+23$3,.2 ./ 9B!WD0 $53+%2$3,*+ $11%.$4='

1(!F R+ =$*+ 7+4,7+7 2.3 3. 1%+04%,K+ 3=+ 7+3$,5+7 $11%.$4= 3. K+ "0+7' A=+%+/.%+ 9B!W E$27 $2& 0"44+00.% .1+%$3.% ./ 3=+ 9$40 1$&#+23 0&03+#F -,55 K+ /%++ 3. ,#15+#+23 3=+ 2+- $44%+7,3$3,.2 04=+#+Q 1%.*,7+7 ,3 4$2 45+$%5& 7+#.203%$3+ 3. "0 3=$3 3=,0 $11%.$4= -,55 +//+43,*+5& $77%+00 3=+

Page 19: Direct Debit Facilities Management: Switching Providers · Direct Debit Facilities Management: Policy statement PS17/3 Payment Systems Regulator December 2017 4 2 Introduction Background

:2.019 :0;29 ?712<29203 !75780@059C D4<21E 39790@059 DF*GHI

D7E@059 FE390@3 &08-<794. :010@;0. ()*G *G

4.24+%20 ,2 $2 $44+13$K5+ 3,#+/%$#+' R+ 4.20,7+% 3=$3 3=,0 $11%.$4= ,0 3=+ 5+$03 ,23%"0,*+Q ;,*+2 3=$3 9B!W =$0 ,30+5/ 0";;+03+7 3=$3 ,23%.7"4,2; $ 2+- $44%+7,3$3,.2 04=+#+ ,0 3=+ #.03 $11%.1%,$3+ %+#+7&'

1(!! M2 %+$4=,2; ."% 7+4,0,.2 3. +T+%4,0+ ."% >!9CH 1.-+%0 ,2 %+5$3,.2 3. 3=+ 0&03+# %"5+ 4=$2;+Q -+ 4.20,7+%+7 ."% 1$&#+23 0&03+# .K]+43,*+0 $27 %+5+*$23 1%,24,15+0' M2 1$%3,4"5$%Q -+ 4.20,7+%+7 3=+ ,#1$43 .2 ."% 4.#1+3,3,.2 .K]+43,*+ E3. 1%.#.3+ +//+43,*+ 4.#1+3,3,.2 ,2 3=+ #$%:+3 /.% 0+%*,4+0 1%.*,7+7 K& 1$&#+23 0&03+#0F^ $27 ."% >!9CH 0+%*,4+L"0+% .K]+43,*+ E3. +20"%+ 3=$3 1$&#+23 0&03+#0 $%+ .1+%$3+7 $27 7+*+5.1+7 ,2 $ -$& 3=$3 3$:+0 $44."23 ./Q $27 1%.#.3+0Q 3=+ ,23+%+030 ./ 3=.0+ -=. "0+Q .% $%+ 5,:+5& 3. "0+Q 0+%*,4+0 1%.*,7+7 K& 1$&#+23 0&03+#0F'

1(!) R,3= %+;$%7 3. ."% .K]+43,*+0Q -+ 4.20,7+%+7 3=+ .13,.2 ./ 2.3 "0,2; ."% 1.-+%0 $27 ,203+$7 5+$*,2; 9B!W 3. ,#15+#+23 $ 0.5"3,.2 *.5"23$%,5&' R+ 2.3+ 3=$3 9B!W =$0 #$7+ 1%.;%+00Q K& "17$3,2; 3=+ G,%+43 G+K,3 %"5+0 3. $#+27 3=+ 7+/,2,3,.2 ./ S>? 1%.*,7+%D $27 3. ,23%.7"4+ $ %"5+ %+J",%,2; >? 1%.*,7+%0 3. K+4.#+ $44%+7,3+7 "27+% $ 2+- $44%+7,3$3,.2 04=+#+' A=+ 4=$2;+0 3$:+ +//+43 /%.# ( Z$2"$%& 6I(['

1(!2 R+ $50. 4.20,7+%+7 3=+ /.55.-,2;V

$' B%,24,15+0 ./ 9+33+% C+;"5$3,.2 ,2 3=+ W+;,05$3,*+ $27 C+;"5$3.%& C+/.%# H43 6II_Q ,245"7,2; 1%.1.%3,.2$5,3& $27 3%$201$%+24&Q $27 3=+ $77,3,.2$5 %+J",%+#+230 ./ 3=+ C+;"5$3.%0D N.7+'

K' cJ"$5,3& $27 G,*+%0,3& M#15,4$3,.20V H0 1$%3 ./ ."% 7+4,0,.2L#$:,2; 1%.4+00+0 -+ $00+00 3=+ 5,:+5& +J"$5,3& $27 7,*+%0,3& ,#1$430 $27 3=+ %$3,.2$5+ ./ ."% 1%.1.0$50 3. 0++ ,/ 3=+& %$,0+ $2& 4.24+%20 $0 $ %+0"53 ./ $2& 1%.3+43+7 4=$%$43+%,03,4' A=,0 #++30 ."% 1"K5,4 0+43.% +J"$5,3& 7"3& "27+% 3=+ cJ"$5,3& H43 6I(I'

1(!1 >,2$55&Q $0 -+ 1%.1.0+ 3. +T+%4,0+ $ 1.-+% %+/+%%+7 3. ,2 0+43,.2 _6E6F ./ >!9CHQ -+ $50. 4.20,7+%+7 -=+3=+% ,3 -."57 K+ #.%+ $11%.1%,$3+ 3. 1%.4++7 "27+% 3=+ N.#1+3,3,.2 H43 (aa['R+ 4.20,7+% 3=$3 3=+ ,00"+0 -+ =$*+ ,7+23,/,+7 $27 -=,4= $//+43 4.#1+3,3,.2 4$2 K+ #.03 4.#1%+=+20,*+5&Q +//,4,+235& $27 +T1+7,+235& $77%+00+7 K& $ 4=$2;+ 3. 3=+ 9$40 0&03+# %"5+0'

1(!< )2 3=+ K$0,0 ./ 3=+ ,2/.%#$3,.2 -+ =$*+ %+4+,*+7Q 1$%3,4"5$%5& /%.# 3=+ 4.20"53$3,.2Q -+ =$*+ 7+4,7+7 3=$3 3=+ 4"%%+23 %"5+0 %+5$3,2; 3. K"5: 4=$2;+V

• #$& =$%# 4.#1+3,3,.2

• #$& 1%+*+23 0+%*,4+L"0+%0 /%.# 0-,34=,2; >? 1%.*,7+%0

• $%+ 2.3 ,2 0+%*,4+L"0+%0D ,23+%+030

>"%3=+%#.%+Q -+ 7+3+%#,2+7 3=$3 $ 7,%+43,.2 $0 7+04%,K+7 ,2 3=,0 0+43,.2 -."57 1%.#.3+ +//+43,*+ 4.#1+3,3,.2 ,2 3=+ %+5+*$23 #$%:+3Q $27 1%.#.3+ 3=+ ,23+%+030 ./ 0+%*,4+L"0+%0 ,2 %+5$3,.2 3. >? 1%.*,7+% 0+%*,4+0'

M2 3=+0+ 4.245"0,.20Q S0+%*,4+L"0+%0D =$0 3=+ #+$2,2; 7+/,2+7 ,2 >!9CH E0++ 1$;+ 8F'

1(!G f$*,2; #$7+ 3=,0 7+4,0,.2Q -+ -,55 0=.%35& 4.20"53 -,3= 9B!W .2 3=+ 1%+4,0+ -.%7,2; ./ ."% !1+4,/,4 G,%+43,.2'

Page 20: Direct Debit Facilities Management: Switching Providers · Direct Debit Facilities Management: Policy statement PS17/3 Payment Systems Regulator December 2017 4 2 Introduction Background

:2.019 :0;29 ?712<29203 !75780@059C D4<21E 39790@059 DF*GHI

D7E@059 FE390@3 &08-<794. :010@;0. ()*G *M

1(!; M2 ."35,2+Q ."% !1+4,/,4 G,%+43,.2 -,55 7,%+43 9B!W 3.V

$' c20"%+ 3=$3 ,24.#,2; >? 0+%*,4+ 1%.*,7+%0 3=$3 -,0= 3. 7. 0. 4$2 "0+ 3=+ 9$40 K"5: 4=$2;+ 1%.4+00 3. =+51 45,+230 -=. -,0= 3. 0-,34= 3. 3=+# /%.# $2.3=+% 1%.*,7+%'

K' R,3=,2 $ 01+4,/,+7 3,#+/%$#+Q 0"K#,3 /.% ."% $11%.*$5 $ 15$2 4.23$,2,2;V

(' $ 3,#+5,2+ -,3= #,5+03.2+0 /.% 3=+ ,23%.7"43,.2 ./ 3=+ 0&03+# ./ $44%+7,3$3,.2Q ,245"7,2; 3=+ 7$3+ K& -=,4= ,3 ,0 +//+43,*+

6' $ 4.#15+3+ 7+04%,13,.2 ./ 3=+ 0&03+# ./ $44%+7,3$3,.2 ,245"7,2; $2& $;%++#+230

4' c20"%+ 3=$3 3=+ 0&03+# ./ $44%+7,3$3,.2 4.23$,20V

(' $ %+J",%+#+23 3. "0+ 3=+ K"5: 4=$2;+ 1%.4+00

6' $ 0&03+# ./ +2/.%4+#+23 $27 0$243,.20

8' $ 7+04%,13,.2 ./ 0+%*,4+ 5+*+50 $115,4$K5+ "27+% 3=+ 0&03+# ./ $44%+7,3$3,.2Q ,245"7,2; 3=.0+ 4.*+%,2; 7$3$ J"$5,3& $27 3=+ 3,#,2; ./ $2& K"5: 4=$2;+ 1%.4+00 03+10

1(!H M2 3=+ +*+23 3=$3 ,20"//,4,+23 1%.;%+00 ,0 K+,2; #$7+ .% -+ 4.20,7+% 3=$3 3=+ 1%.1.0+7 $11%.$4= -,55 2.3 $77%+00 3=+ 4.24+%20Q -+ #$& 3$:+ /"%3=+% $43,.2' A=,0 #$& ,245"7+ +2/.%4+#+23 $43,.2 $27P.% /"%3=+% "0+ ./ ."% >!9CH 1.-+%0'

Page 21: Direct Debit Facilities Management: Switching Providers · Direct Debit Facilities Management: Policy statement PS17/3 Payment Systems Regulator December 2017 4 2 Introduction Background

:2.019 :0;29 ?712<29203 !75780@059C D4<21E 39790@059 DF*GHI

D7E@059 FE390@3 &08-<794. :010@;0. ()*G *N

A--$B 8C$+45-7$-&+ &5 5<# %5-+<*&)&"5-

R+ %+4+,*+7 %+01.20+0 /%.# 3=+ /.55.-,2;V

X54$ B@588&7&05,&-+

c$g,1$& W37 >$4,5,3,+0 ?$2$;+#+23 1%.*,7+%

>$03B$& W37 >$4,5,3,+0 ?$2$;+#+23 1%.*,7+%

X.N$%75+00 W37 >$4,5,3,+0 ?$2$;+#+23 1%.*,7+%

W+;+27 N5"K ?$2$;+#+23 !&03+#0 E\`F W37 >$4,5,3,+0 ?$2$;+#+23 1%.*,7+%

C!?6III W37 >$4,5,3,+0 ?$2$;+#+23 1%.*,7+%

!#$%3G+K,3 >$4,5,3,+0 ?$2$;+#+23 1%.*,7+%

f$%5$270 X%."1 >$4,5,3,+0 ?$2$;+#+23 1%.*,7+%

X2cCXh W37 >$4,5,3,+0 ?$2$;+#+23 45,+23

W5.&70 9$2:,2; X%."1 !1.20.% K$2:

f!9N !1.20.% K$2:

C9! !1.20.% K$2:

9$40 B$&#+23 !4=+#+0 W,#,3+7 E9B!WF G,%+43 G+K,3 04=+#+ .1+%$3.%

Page 22: Direct Debit Facilities Management: Switching Providers · Direct Debit Facilities Management: Policy statement PS17/3 Payment Systems Regulator December 2017 4 2 Introduction Background

:2.019 :0;29 ?712<29203 !75780@059C D4<21E 39790@059 DF*GHI

D7E@059 FE390@3 &08-<794. :010@;0. ()*G ()

A--$B :D5-+<*&)&"5- E<$+&"5-+ ?#5/ DF8GH8

M2 ."% H";"03 4.20"53$3,.2 -+ $0:+7 /.% %+01.20+0 3. 3=+ /.55.-,2; J"+03,.20 E1$%$;%$1= 2"#K+%0 %+/+% 3. NB(OP(FV

RJ5, -9S$0,&#$ S/8,&7&05,&-+8 '-/@. 5+ $>&8,&+O TU :%-#&.$% J5#$ ,- %$7/8$ ,- /8$ ;").1*,0 P=,J$ V508 9/@N 0J5+O$ :%-0$88 ,- 8'&,0J 8-4$ -% 5@@ &,8 9/8&+$88 ,- 5+ 5@,$%+5,&#$ TU :%-#&.$%W

Y- 6-/ 5O%$$ '&,J -/% 7&%8, :%-#&8&-+5@ 0-+0@/8&-+W RJ5, 5%$ ,J$ %$58-+8 7-% ;").1*,0 <=6-/% 5+8'$%W

Y- 6-/ 5O%$$ '&,J -/% 8$0-+. :%-#&8&-+5@ 0-+0@/8&-+W RJ5, 5%$ ,J$ %$58-+8 7-% ;").1*,0 A=6-/% 5+8'$%W

*+ :5%,&0/@5%Z .- 6-/ ,J&+N ,J5, &4:-8&,&-+ -7 5 %/@$ ,- 50J&$#$ 8/0J 5 :/%:-8$ ;").1*,0 B='-/@. /+75&%@6 %$5@@-05,$ @&59&@&,6 &+ 5+6 '56 [O&#$+ ,J$ 9/@N 0J5+O$ .$$.\W

Y- 6-/ 5O%$$ '&,J -/% ,J&%. :%-#&8&-+5@ 0-+0@/8&-+Z 5+. ,J5, ,J$ 8:$0&7&$. :/%:-8$ ;").1*,0 H=-7 ,J$ :%-:-8$. %/@$ &8 5::%-:%&5,$W D@$58$ O&#$ 6-/% %$58-+8(

RJ5, 0-+8&.$%5,&-+8 8J-/@. VD3] 5+. ,J$ D3? ,5N$ &+,- 500-/+, &+ ,J$ 7-%4/@5,&-+ ;").1*,0 K=-7 ,J$ %/@$ 0J5+O$W

Y- 6-/ 5O%$$ ,J5, 5+6 +$' %/@$ 8J-/@. 9$ 5::@&059@$ -+@6 ,- TU :%-#&.$%8 'J- ;").1*,0 N=5%$ D3D8 :%-#&.&+O 0-44$%0&5@ TU 8$%#&0$8W

Y- 6-/ 5O%$$ '&,J ,J$ :%-:-8$. 0-+.&,&-+8 5\ ,- .\ &+ /$%$7%$/8 AJPO Q,- ;").1*,0 O=RIPNSPT %$O5%.&+O 'J$+ 5 +$' %/@$ 8J-/@. 5::@6W

=%$ ,J$%$ 5+6 -,J$% 0-+.&,&-+8 6-/ ,J&+N 8J-/@. 5@8- 5::@6W D@$58$ $>:@5&+ 6-/% ;").1*,0 U=S/8,&7&05,&-+ 7-% ,J$8$(

Y- 6-/ 0-+8&.$% $50J -% 5+6 -7 ,J$ 8/OO$8,$. $>0$:,&-+8 .&80/88$. &+ /$%$7%$/8. ;").1*,0 PY=AJPU $04 AJ<Y Q,- RIPNSPT 1, E) #5@&. O%-/+.8 7-% 5+ -/,O-&+O TU :%-#&.$% ,- '&,JJ-@. &,8 0-+8$+, ,- 5 9/@N 0J5+O$ :%-0$88 %$C/$8, ,- 8/::-%, -+$ -7 &,8 TU 0@&$+,8 8'&,0J&+O &,8 9/8&+$88 ,- 5+-,J$% TU :%-#&.$%W D@$58$ :%-#&.$ S/8,&7&05,&-+ 7-% 6-/% #&$'8(

=%$ ,J$%$ 5+6 -,J$% $>0$:,&-+8 ,J5, 8J-/@. 9$ 5::@&$. ,- ,J$ %/@$W D@$58$ :%-#&.$ ;").1*,0 PP=S/8,&7&05,&-+ 7-% 6-/% #&$'8(

Y- 6-/ J5#$ 5+6 0-44$+,8 -% 8/OO$8,&-+8 %$O5%.&+O ,J$ %$@5,&#$ 9$+$7&,8 5+. ;").1*,0 P<=.&85.#5+,5O$8 %$O5%.&+O ,J$ ,'- -:,&-+8Q K5L [+- 0J5+O$\ 5+. K9L [+$' V508 :5%,&0&:5+, 05,$O-%6\W RJ&0J .- 6-/ ,J&+N &8 @&N$@6 ,- 9$ 4-8, $77$0,&#$Z 5+. 'J6W

Y- 6-/ J5#$ 5+6 0-44$+,8 -% 8/OO$8,&-+8 %$O5%.&+O ,J$ 9$8, ,&4$ ,- &4:@$4$+, ;").1*,0 PA=5+6 0J5+O$8W