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Millennium bcp Global Collection Direct Debits System  Client’s Manual

Millennium bcp Global Collection Direct Debits System  Client’s Manual. Definition of the Service. The Direct Debit System is an inter-bank system for automatic collections regulated by Bank of Portugal;

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Millennium bcp Global Collection Direct Debits System  Client’s Manual

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  1. Millennium bcp Global CollectionDirect Debits System Client’s Manual

  2. Definition of the Service • The Direct Debit System is an inter-bank system for automatic collections regulated by Bank of Portugal; • DD System allows the Creditor to centralise Direct Debits with Millennium bcp, regardless of the bank in Portugal where our Client’s customer (the Debtor) holds the account to be debited; • This system covers pre-authorised debits on the Debtor’s Bank account based on a collection instruction initiated by theCreditor; • Millennium bcp’s Client is the Creditor’s Representative, a non-resident Bank that is technically responsible for the collections performed by the Original Creditor Entities; • SIBS is the entity responsible for the electronic clearing on the inter-bank network.

  3. Service Administration

  4. Main advantages of the DirectDebit System • Simplifies treasury management by centralising the proceeds of your Direct Debits with Millennium bcp; • Enables greater control and cost economy by using a single file for all Direct Debits; • Increases convenience and clarity resulting from an efficient inter-bank system, legally regulated, with rules and obligations clearly defined for all parties.

  5. Useful information(I) • Normalised references with 11 digits identifying the Account Debit Authorisation (ADC) are created by the Creditor; • Collection instructions sent by the Creditor must be previously authorised by the Debtor; • Previous information on the amount and value date of the debit must be sent by the Creditor to the Debtor (15 days); • With the signing of the truncate letter, the Creditor’s Bank is exempted from sending to Millennium bcp the ADC; • Whenever requested by the Debtor or his Bank, the Creditor’s Representative (Our Client) has to present a copy of the ADC within a period of no more than 2 working days. Its non presentation implies the reversal of all credit entries related to DDS collections from that Debtor;

  6. Useful information(II) • The Debtor hands over the Debit Authorisation to the Creditor who is responsible for activating it; • The Creditor must inform the Debtor about the Creditor’s Entity Code and the normalised ADC reference; • The debit authorisation may have maximum amounts per transaction and expiry date defined by the Debtor and it may be changed or cancelled at any time; • There are no partial debits; • Files may be transmitted through Millennium bcp Portal: www.millenniumbcp.com

  7. Glossary • ADC - Account Debit Authorisation is a document mentioning the Creditor’s Entity Code and the normalised ADC reference where the debtor states his/her agreement to be debited on the specified account NIB. • EAN – File wit the Normalised ADC to be sent to the SDD. It is also used to create/cancel truncate ADC’s. • NIB - Bank account number. • PS2 - File format created by the Portuguese Banks Association for payment and collection processing. • RAD - File with updated information relative to active, cancelled and changed ADC’s. • SDD – Same as DDS. It is the Direct Debit System managed by SIBS. • SIBS - Inter-Bank Service Company, managing company of the DirectDebit System.

  8. Procedures of theCreditor’s Representative 1. Sign the contract; 2. Sign-up to the Internet Banking of Millennium bcp to safely transfer the Direct Debit files (www.millenniumbcp.com); 3. Develop the necessary procedures, either internally or with the help of a tool produced by Millennium bcp (Gestão deFicheiros) to create and manage the Direct Debit files; 4. Receive from Millennium bcp the Creditor Entity Code (6digits) which is provided by SIBS; 5. Informs the Debtor about the “Creditor Entity Code” and the“ADC reference”;

  9. Procedures of theCreditor’s Representative (Cont.) 6. Send to Millennium bcp the Direct Debit files with the correct layouts and the relevant instructions, in order to be immediately transmitted to the inter-bank DDS: a) Create the EAN file (Normalized Account Debit Authorizations) and send it to Millennium bcp via web site; b) Receive the RAD file (Return of Debit Authorizations) 48hrs later and use it to confirm the validity of the ADC; c) Send to Millennium bcp the Direct Debit file (PS2 file layout); d) Receive the return files, with the result of the direct debits paid.

  10. Operational Flow

  11. Value Dates applied to theCreditor’s account D: On the date payment is due (processing date) the Creditor’s account is credited for the total amount of the Direct Debits file, under the following value dates: • D + 1: Credit Value Date applied to the total amount debited from customers of Millennium bcp; •  D + 3: Credit Value Date applied to the proceeds received from the other financial institutions; • D + 4: After receiving the Definitive Return File the non-paid amounts are reversed from the Creditor’s account; • D + 30 (as from 01/07/2005): date when the credits in the Creditor’s Representative account include the transactions revoked and, therefore, may be considered final; • For each revoked transaction occurred during the revoking period (from D until D+30), the Creditor’s account will be debited for the returned items under value date D + 3 (or D + 1 if Debtor is a customer ofMillennium bcp).

  12. Return Information Two types of return files are available: • A definitive return file on D + 4; • A end of cycle return file, on D+30 (as from July 1st,2005), which includes any revoked debits requested by debtors during the revoking period after settlement (D+3); Note: Revoked transactions are debited from the Creditor’s Representative account per item and during the revoking period

  13. DDS File Layouts The Creditor’s Representative is required to produce, reconcile, send and receive three types of files: EAN, RAD and PS2 These files can be generated and managed with the help of the File Management Software Gestão de Ficheiros

  14. Normalized Account DebitAuthorization (EAN File) For further details click here

  15. Return Account DebitAuthorization (RAD File) For further details click here

  16. Collections (PS2 File) For further details click here

  17. SDD Files Transfer viaMillenniumbcp Portal

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