Direct Debit

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From following up on payment status, to the manual effort involved in reconciling cash and cheques from customers, the accounts receivables (AR) process can be time-consuming. To provide greater convenience on your collections, HSBC Bangladesh has launched our Direct Debit service.

What is Direct Debit (DD)?

DD allows you to provide one-off or standing instructions to HSBC to collect funds from other banks or bank accounts including at pre-set intervals (e.g. weekly, monthly). To do so, your payers will need to fill out an authorisation mandate, which you then provide to HSBC. After this, funds are deducted automatically from your payers’ accounts, and credited directly to your HSBC account electronically. You can pull funds from your own accounts held at other banks as well.

How can DD help?

DD can be used to collect money owed for any services or goods being provided to your customers . This is particularly ideal for recurring, low value, non-urgent payments with varying (one-off) or fixed (one-off or recurring) amounts. For example, these can be utility bills, tax payments or membership fees.

It can also be used to consolidate funds held in your accounts with other banks centrally to your HSBC account to assist with payments and liquidity management.

Key benefits of DD

Once authorised, DD grants greater efficiency on your AR processes by automating the process of receiving and reconciling payments from your payers. This eliminates manual effort, while also allowing you to receive funds faster than before. It also enables greater overall visibility on your liquidity by enabling the consolidation of funds to a single account.

With DD, your payers also have a more convenient and secure way of making recurring payments to you, as funds are deducted automatically from their accounts. DD’s parameters and controls are also in place to prevent misuse of the authorisation mandate.

Local restrictions and requirements

  • The process is driven by scheme rules defined by the central bank of Bangladesh (Bangladesh Bank)
  • Domestic payments only – no cross-border foreign currency
  • The service is also governed by the central bank’s Bangladesh Electronic Fund Transfer Network (BEFTN) Operating Rules

To know more about this service and how it works, please contact your HSBC cash management specialist or your HSBC representative.


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