Gregory Schlemmer (IBANC) on the consequences of Brexit on direct debit payments

Gregory Schlemmer (IBANC) on the consequences of Brexit on direct debit payments

Brexit had a direct impact on physical imports and exports to and from the United Kingdom in Europe. However, changes were also made in the background to the payment system, which caused problems for companies on both sides of the channel. After a period of two months, the banks have amended the direct debit requirements between the European Union and the GB. Gregory Schlimmer of PayGlobal Technology gives his insight into developments and the role his customer company plays in it.

Schlemmer: “For example, the requirements for the collection file in different banks have been modified, so that collection in or from the UK does not go smoothly. In ING Bank in the Netherlands, for example, address details must be included in the direct debit file in a different way in order to achieve a transaction Successful “.

He gives an example and tells how they found out in Kolibri Logistics in Krimpen aan de Lek, when after January of this year it was no longer possible to conduct more direct debits with their British customers. “The bank’s announcement about these amendments was flawed, resulting in no further funds being raised in the UK. To create their group files, they use the IBANC software from PayGlobal Technology, which immediately provided a suitable solution,” says Schliemer.

Organizations from other European Union countries also have problems with this, says Schleimer, such as pharmaceutical company John McDowell LTD from Northern Ireland. Alan McNeice of John McDowell LTD commented, “We have not been informed of these changes by the Bank of Ireland. Fortunately, PayGlobal Technology provided us with a solution on the same day.”

See also  Dismissal threatens Van Marwijk: rapid crisis consultation

But Brexit itself also led to changes in the direct debit file format in Great Britain itself. SkateSite Skates LTD from England is no longer able to conduct direct debits with its European clients, Schlimmer provides another example. “The bank has adapted the requirements for the direct debit payment in the background, in accordance with the requirements of the European Payment Council. The customer discovered that suddenly they could no longer process transactions.”

This customer has also provided PayGlobal Technology support. “With our IBANC program, we have a flexible solution that can be implemented quickly in John McDowell LTD and SkateSite Skates LTD. This has allowed them to successfully deliver direct debit to their bank without delay.”

Schlemmer, who plays IBANC’s Senior Account Manager, finally points out that they have been able to smoothly help many clients from across Europe in the post-Brexit period. Otherwise, they would have had to wait months to make adjustments to their ERP or CRM software package. Schlemmer concludes that this makes IBANC “the ideal solution for middleware to be able to switch quickly with these types of file format changes.”

Leave a Reply

Your email address will not be published. Required fields are marked *