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Version: 8.1

Types of bank orders

Different types of bank orders are available on AOS:

  1. Standard transfers: transfer money from one account to another (generally speaking not belonging to the company).

  • SEPA zone (SEPA Credit Transfer or SCT);

  • International zone.

  1. Cash transfers: transfer money from one account to another account, belonging to the same account holder or to another company in the same group.

  • SEPA zone;

  • International zone.

  1. Direct debits (SEPA Direct Debit or SDD): the company (supplier) requests, with the Customer's prior authorisation, that its bank debit the requested amount from the debtor's account.

  2. Bills of exchange (or LCRs), which are commercial instruments, these bills are similar to direct debits. Being credit instruments, it means they are payable at a future date and not immediately (French zone).

Bank debits​

A direct debit is an authorisation given by an account holder (and to their bank) to withdraw a certain amount from their account, on a recurring or one-off basis, and transfer it to a third-party beneficiary account via the banking system.

In the SEPA zone, direct debits are now referred to as SEPA Direct Debits (SDDs).

In order to be effective, several conditions must be met:

  • The beneficiary must have a SEPA Creditor Identifier (ICS) number, which is a unique reference number assigned by the Bank of France (13 characters in FR).

  • The payer must provide the beneficiary with a signed permanent or one-off direct debit authorisation, commonly referred to as a ‘Mandate’. The mandate given by the debtor contains a Unique Mandate Reference (RUM), which must be kept by the creditor.

  • The ICS/RUM combination must be unique.

  • The creditor must inform the debtor at least 14 days before the direct debit is issued by any means (post, email, payment schedule, etc.).

Letter of Exchange (LCR)​

Bill of Exchange: a Bill of Exchange is a commercial instrument that binds a customer to their supplier. It is usually issued at the same time as the invoice. Through a Bill of Exchange, a supplier (the drawer) orders their customer (the drawee) to pay them a specified amount on a specified date. The promissory note is mainly used in business-to-business commercial transactions. It offers a cash flow advantage as it is treated as a credit instrument since it is payable at a future date rather than immediately.

To be valid, a promissory note must include the following information:

  • Details of the debt: date of issue, place of issue, amount;

  • Name, address and signature of the drawer;

  • Name, address and bank details of the drawee;

  • Signature of the drawee (which serves as acknowledgement of the debt);

  • Due date: if not specified, the promissory note is payable ‘on demand’ (at the drawee's discretion).