Gregory Schlemmer (IBANC) on the consequences of Brexit on direct debits
Brexit had a direct impact on physical imports and exports to and from the UK in Europe. However, changes were made in the background to the payment system as well, which posed challenges for businesses on both sides of the Channel. After a two-month delay, the banks changed the direct debit requirements between the European Union and the UK. Gregory Schlimmer of PayGlobal Technology gives his opinion on developments and the role his client company plays in them.
Schlemmer: “For example, the requirements for the collection record in different banks have been changed so that collection in the UK or from the UK does not run smoothly. At ING Bank in the Netherlands, for example, the details have to be included in the direct debit file in a different way in order to make a successful transaction ”.
He gives an example and tells how they discovered at Kolibri Logistics in Krimpen aan de Lek, that after January of this year it was no longer possible to carry out more direct debits with their UK customers. “The bank’s announcement about these changes was wrong, resulting in additional fundraising in the UK. To create their group files, they use the IBANC software from PayGlobal Technology, which immediately provided a suitable solution, ”explains Schliemer.
Organizations in 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 said: “We have not been notified of these changes by the Bank of Ireland. Fortunately, PayGlobal Technology provided us with a solution the same day.
But Brexit itself also brought about changes in the format of direct debit files in Britain itself. SkateSite Skates LTD from England is no longer able to carry out direct debits with its European customers, Schlimmer provides another example. “The bank has adapted the requirements for payment by background direct debit, in line with the requirements of the European Payments Council. The client discovered that suddenly he could no longer process the transactions.
This client also provided support for PayGlobal Technology. “With our IBANC program, we have a flexible solution that can be implemented quickly in John McDowell LTD and SkateSite Skates LTD. This allowed them to successfully deliver the direct debit to their bank without delay. “
Schlemmer, who plays the role of Senior Account Manager of the IBANC, finally underlines that they were able to gently help many clients from all over Europe during the post-Brexit period. Otherwise, they would have had to wait months to make adjustments to their ERP or CRM software. Schlemmer concludes that this makes IBANC “the ideal solution for middleware to quickly switch over with these types of file format changes.”