Minimum Mandate Requirements

The Minimum Mandate Requirements section explains the information that must be included before an electronic debit order mandate can be accepted and used for collections.

A valid mandate records the payer's authority for the creditor to submit debit order payment instructions against the payer's bank account according to the agreed contract, amount, frequency and collection date.

Example Mandate

Use the example mandate as a reference when reviewing or preparing your own mandate wording.

View example mandate

Before Processing a Debit Order

Before any debit order payment instruction is submitted, the creditor must ensure that:

1. A valid mandate has been obtained from the payer.
2. The mandate was accepted before the first payment instruction is processed.
3. The payment instruction is only processed on or after the authorised action date.
4. The payment instruction matches the mandate terms.
5. The mandate has not been cancelled, withdrawn or stopped by the payer.
6. No mandate terms have been changed without the payer's authorisation or the required notice.

Creditor Information

The mandate must clearly identify the party collecting the debit order.

Include:

• Full registered name of the creditor
• Trading name, where applicable
• Abbreviated short name / ABSN that will appear on the payer's bank statement
• Contact details for mandate queries
• Contract, agreement or customer reference number

The abbreviated short name must allow the payer to identify who debited their account.

Payer Information

The mandate must clearly identify the payer and the account to be debited.

Include:

• Payer name and surname
• Identity number, passport number or temporary residence ID
• Bank name
• Branch code, where applicable
• Account number
• Account type, where applicable
• Confirmation that the payer has authority to authorise debits on the account

Collection Details

The mandate must describe how and when the payer may be debited.

Include:

• First collection date, where applicable
• Collection day or agreed collection rule
• Frequency of collection, for example weekly, fortnightly, monthly, quarterly, annually or another agreed recurring rule
• Date adjustment rule, where the collection day may change, for example salary date or the previous business day when the normal collection date falls on a weekend or public holiday
• Initial amount, where applicable
• Instalment amount, where applicable
• Maximum collection amount, where applicable
• Whether the amount is fixed, variable or usage-based
• Any authorised adjustment category, amount or rate, where the amount may change over time

The mandate must either state the exact amount payable or clearly explain when and how the amount may vary.

Authority to Debit

The mandate must contain explicit authority from the payer.

The authority wording should make it clear that:

• The payer authorises the creditor to issue payment instructions to the creditor's bank.
• The payer authorises the payer's bank to debit the payer's account.
• The payment instructions will be treated as if they were issued by the payer personally.
• The debit order will be processed according to the contract or agreement referenced in the mandate.

For an electronic mandate, the payer must give clear and unambiguous electronic acceptance of the mandate terms.

Electronic Acceptance Evidence

For electronic mandates, the platform should retain evidence that the payer accepted the mandate.

Keep a record of:

• Date and time of acceptance
• Mandate version or wording accepted by the payer
• Payer details captured at acceptance
• Contract or agreement reference
• Amount, frequency and collection details accepted
• Electronic signature, acceptance action or consent record
• Device, browser, IP address or similar technical audit information, where available

This evidence should make it possible to prove which mandate terms the payer accepted if a dispute is raised.

Credit Tracking Disclosure

Where credit tracking or account tracking is used, the mandate must disclose this to the payer.

The disclosure should explain that the debit order may be tracked and re-presented when sufficient funds become available, if this forms part of the collection process.

Cession or Assignment

Where applicable, the mandate should include a cession or assignment clause.

This clause should state that the mandate may be ceded or assigned to a third party only if the related contract or agreement is also ceded or assigned to that third party.

Confirmation to the Payer

For an electronic mandate, confirmation should be made available to the payer before payment instructions are processed.

The confirmation should include:

• Payer name and surname
• Contract or agreement reference
• Commencement or action date
• Amount or variable amount wording
• Abbreviated short name that will appear on the payer's bank statement
• Creditor contact details
• Date of confirmation

Retention Requirements

Mandates and supporting records must be stored in a form that can be produced when requested by a bank, sponsor, auditor or dispute process.

Retain:

• The accepted mandate
• The contract or agreement linked to the mandate
• Any mandate amendments
• Any consent, confirmation or notification records
• Audit evidence supporting electronic acceptance

As a control, mandate records should be retained for at least 7 years after the last debit order transaction, unless a longer retention period applies.

Common Reasons a Mandate May Fail Review

A mandate may be rejected or treated as deficient if:

• No mandate can be produced.
• The mandate does not identify the creditor.
• The abbreviated short name is missing or does not match the statement descriptor.
• The payer's bank account details are incomplete.
• The amount, frequency or collection date is unclear.
• The payer did not clearly authorise the debit.
• The mandate was accepted after the first payment instruction was processed.
• The payment instruction does not match the mandate.
• The mandate was changed without authorisation.
• The mandate was cancelled, withdrawn or stopped.

Tips

• Keep mandate wording simple and specific.
• Make the amount, frequency and collection date easy for the payer to understand.
• Use the same abbreviated short name on the mandate and on payment instructions.
• Store a full copy of the mandate accepted by the payer, not only the captured form fields.
• Record the mandate version accepted by the payer.
• Do not process collections where the mandate is incomplete or disputed.
• Submit mandate templates for bank or sponsor review before using them in production.