t method in CiviCRM Paul Delbar Project 60 Topics What the hell is this SEPA thing What business problem are we solving Solution architecture CiviSDD implementation process Status plans ID: 803186
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Slide1
SEPA Direct DebitSupporting Europe’s new recurring payment method in CiviCRM
Paul DelbarProject 60
Slide2TopicsWhat the hell is this SEPA thing ?What business problem are we solving ?
Solution architectureCiviSDD implementation processStatus, plansApplause
Slide3What is CiviSDD ?SEPA Direct Debit and why you should care
If you are not fundraising in any of the Single European Payment Area countries, feel free to skip this blog -- unless you want to discover how the amazing
CiviCRM
community is building support for what is becoming
Europe's most important recurring payment instrument
.
Do you know what direct debit means ? Don't feel bad admitting it. A direct debit transaction is a payment that is initiated by the receiver, not the sender. In practice, a donor gives you permission to ask his/her bank to transfer money into your bank.Fundraising using direct debit is interesting because once your donors gives you the permission, they don't need to do anything : your job is to create the next debit instruction for every agreement you have, send them to the service provider who processes them (which could be your own bank or another company) and manage the exceptions that will occur (like your donors having insufficient balance in their account). Donors will feel it's not worth taking the effort to cancel the agreement (and feeling bad about it), so direct debit-based recurring donations tend to have a looooong life.SEPA was created to help facilitate funds transfer between member states. Its first accomplishment was SEPA Credit Transfer. For example, my bank account was called 778-5915387-91, which makes absolutely no sense to my Irish and Ukrainian fans who want to send me money. Thanks to SEPA, my bank account is now called BE23 7785 9153 8791, its IBAN number, and anyone in a SEPA country can transfer funds to me. It took banks quite a bit of effort to put this in place, but I'm told you can currently yell 'IBAN !' in any bank's IT department without people jumping behind the nearest desk.Recurring payments across Europe were still a pain though. Most countries had some sort of local instrument, like the Dutch machtiging or the Belgian domiciliëring, which were pretty useless if you wanted to support a Portuguese dog kennel or a Lithuanian orphanage, since they tended to be
off-limits to non-national bank accounts. SEPA Direct Debit was designed to provide a single system across Europe, based on IBAN bank account numbers, which would replace all national systems in time. Note the last two words of the previous sentence : while some countries (like Belgium) have been operating SDD for over two years, other member states are frantically trying to get ready before the April 2014 deadline. SEPA Direct Debit isn't easy for most non-profits, because of its administrative and technical requirements. You need to sign an agreement with the bank which will process your payment requests (yes, only one single bank for all of Europe will do), manage the agreements (called mandates in SEPAese) and submit the payment requests for all of the mandates in a rather complex XML format. Banks have small teams of knowledgeable folk, which typically aren't the ones non-profits talk to. Technical staffing and IT capability generally aren't abundant in non-profits. But the advantages are many : SDD provides a reliable, flexible and versatile payment instrument for single and recurring donations. So many organizations were stuck in the middle …The CiviCRM community took notice of the issue. A number of CiviCRM integrators, being queried by their customers for a solution, decided to build a CiviCRM extension to support SEPA Direct Debit. The end result will be an open source extension, free for everyone to download, install and use. So if you're a CiviCRM user, you would be able to setup recurring SDD payments easily, generate the XML with a click of a button, and run a recurring donation stream without going through the technical hassle. The Project 60 team working on this is targeting late June of 2013 for a first release, with current customers acting as pilot users as well as funders for the initiative. There's also a Make It Happen initiative for this extension.Soon, you'll be able to install this extension andoffer SEPA Direct Debit as a payment option on a contribution pageimport SDD mandates generated by face-to-face and other fundraising channelsautomatically generate the required payment requestsgenerate the XML needed to sublit the payments to the bankfollow up on mandate and payment status, integrated in the contributions tab
Slide4What is CiviSDD ?Within the
Single European Payment Area (SEPA), a new and unified model for direct debit handling has been defined, which has been rolled out over Europe over the last few years. Early 2014, most if not all countries will be required to support this payment mode. It allows for recurring and one-off direct debits (initiated by the creditor), but can be quite complex to handle.
This
MIH will allow
CiviCRM
users to setup a
SDD compliant payment process. It will include the payment processor, admin screens for mandate and transaction management, and will contain the logic to generate the appropriate XML-format which is required by SEPA. In addition, we'll write up an integrator's handbook to assist in setting up the complete SDD process with your bank. See also http://civicrm.org/blogs/pdelbar/sepa-direct-debit-and-why-you-should-care
Slide5What is CiviSDD ?
SEPA
Single European Payment Area
, a comprehensive standardization program
Slide6SEPA Direct DebitOrganizes DD payments in SEPA zoneClarify roles (creditor, debtor, banks)Standardize documents and workflow
Supported by common legislation frameworkWhy is this relevant to CiviCRM ?
SDD B2C (Business to Consumer) governs all direct debit transactions, single and recurring
Replaces all country-specific protocols in
2014
SDD is a very flexible payment instrument
Slide7SEPA Direct Debit for Dummies
The donor’s bank executes the payment
using the SEPA Credit Transfer scheme
The donor signs a
SEPA- compliant mandate …
The nonprofit organisation encodes the mandate and generates transactions
1
2
The nonprofit organisation sends an XML-coded transactions batch to its own bank
3
4
Slide8SEPA Direct Debit workflowComplexity for the nonprofitGet an SDD contract with its bankManage the mandate lifecycle
Generate single or recurring payment requestsGenerate the appropriate XMLFollow up on payment and exceptions
SDD has clear advantages
Fast notification
Flexibility (periodicity, amounts, …)
Slide9Where are the complexities ?Legal requirements for mandatesTypes of mandates & transactionsOne-off (OOFF)
Recurring (FRST and RCUR)Timeline for submission & processing Retrieving status informationBatching transactions
Generating the XML
Slide10Mandatesmandate referencedebtor information
creditor informationin additionmonthly amountwhen debits will startpre
-
notification
SDD refund rules
Slide11SDD timelines
T
debit
T
debit
- 5
T
debit + 5Tdebit - 2Tdebit + 2
RCUR
FRST
Slide12Things going boo in the dark
is having second thoughts and decides to stop donating
Julie
Tom
Fred
misses a few payments due to insufficient balance on her account
gets an upgrade call and is willing to increase the monthly amount from 6 to 8 EUR
ERRORSABANDONSUPGRADES
Slide13XML … what can I sayStandard … notBanks
write crap softwaregive crap errors like ‘XML error’
Slide14Project 60 SEPA Direct Debit Processing
Deliverables
Support the SEPA Direct Debit B2C Core model / rulebook
Manage multiple creditor identities
Provide a SEPA-compliant Direct Debit payment processor
Manage the SDD mandate lifecycle
Generate one-off and recurring payment requests Generate the XML required for bank submissionAutomate the exception and feedback processing (requires CiviBanking)Integrator’s Guides :Implementing an SDD workflow
BenefitsBecome operational with SEPA Direct Debit without a significant investment in understanding SDD protocolsTap into the fundraising potential offered by flexible and versatile bank account-based recurring paymentsStandardize recurring payments or memberships and long-term supporters on the new European standardBe ready to deploy the new European recurring payment model in time !
Slide15Solution architecture
Slide16The SDD engine
Slide17Components
Slide18Data model for the SDD extension
Slide19Demo ? Really ?
Slide20The naked truthProject 60
Slide21Project 60 Scope
Managing SEPA Direct Debit recurring payments
CiviCRM
Financial
Transactions
(Bank Accounts)
In real applications of CiviCRM, there are many processes which involve handling information between CiviCRM and bank accounts, which are currently handled manually or by custom scriptsProject 60 is an initiative of a number of European CiviCRM
integrators who want to develop a number of extensions supporting these processes.Decoding bank payments into contributionsReconciling contributions and bank accountsImporting bank payment information
Slide22Key Project 60 components
Working with bank payment information
Supporting SEPA Direct Debit payment processes
Facilitate assisted interpretation of payment into contributions, memberships, …
Slide23Project 60 active participantsTech to the
People – FranceXavier Dutoit
Systopia
–
Germany
Björn Endres, Fabian Schuttenbergdelius – BelgiumPaul Delbar, Chris Madou