Operating Model:
Operating Model:

Direct debit funding

A direct debit funding is a process which results in an increase of the cash balance from the user's IBAN specified on their mandate.

COMING SOON

Soon your users will also be able to fund their account groups with additional funding methods, such as SEPA credit transfers.

I​​t may also be useful to understand cash balances before proceeding further with this guide.

Lifecycle of a SEPA direct debit

  1. You, the client, send a direct debit funding request on behalf of your users.
  2. Upvest executes the request with users' banks.
  3. Once the funds are received, Upvest updates the user's account group cash balance.
INFO

The settlement of funds typically takes two business days.

Submitting a direct debit funding request

Prerequisites

Before triggering a direct debit request, you must ensure that the user is onboarded and active, and has a valid direct debit mandate assigned.

To request a direct debit funding, simply specify the mandate and funding amount for the user’s account group and POST /payments/direct_debits.

The following flow diagram illustrates the direct debit flow including all related direct debit status changes, and cash balance updates:

Direct debit

Example request

{
    "user_id": "83d83ec2-d2ca-49ff-bbea-b92b5c3be202",
    "account_group_id": "1ea60f56-b67b-61fc-829a-0242ac130003",
    "mandate_id": "95b8304e-19fc-4cd9-8e50-82532e6b8d8c",
    "cash_amount": "200.00",
    "remittance_information": "payment for green energy portfolio"
}

After a successful direct debit request, the sample response for the above will look as follows:

Example response

{
    "id": "1ab4fef9-a097-4c6f-9345-647025d5fde6",
    "created_at": "2020-08-24T14:15:22Z",
    "user_id": "82b49999-1145-4e05-916a-567662daa7bc",
    "account_group_id": "1ea60f56-b67b-61fc-829a-0242ac130003",
    "mandate_id": "730b8719-0bc6-401d-98dd-b2de72afbf05",
    "cash_amount": "200.00",
    "currency": "EUR",
    "status": "NEW"
}

You will also receive a direct debit NEW webhook with exactly the same payload.

Direct debit update

Once all relevant payment checks have been passed and the payment instruction has been forwarded to our payment partner, the direct debit transitions into the PROCESSING status and you will receive a direct debit event via webhook.

Afterwards, the direct debit gets executed and confirmed at our payment partner and you will receive a direct debit CONFIRMED webhook.

Next steps

Now that the account group is sufficiently funded, you are ready to proceed with your first order request. Alternatively, you can also register a reference bank account if you would like to withdraw funds instead.

Was this page helpful?