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Process documentationDirect Debit Authorization Locate this document in the navigation structure

 

In Brazil, banks use Direct Debit Authorization (DDA) to increase the overall efficiency of banking services. DDA enables customers to access and pay bills in the electronic format. This process replaces paper boletos with electronic boletos (e-boletos) thereby significantly reducing the number of paper payment slips issued by the companies or their banks. DDA is a more secure, efficient, and a convenient method for handling payments.

Prerequisites

The buyer has chosen a bank as the electronic buyer (e-buyer) and has registered this bank with the Interbank Chamber of Payments (CIP).

Process

In the DDA process, the company that issues boletos is the seller and the company that pays is the buyer.

DDA includes the following steps:

  1. Sellers register the electronic payment slips (e-boletos) in their banks

  2. Seller’s bank checks if the buyer is an e-buyer

  3. If buyer’s bank is registered with CIP, seller’s bank sends payment slips relevant to that buyer to CIP

  4. CIP stores the payment slips

  5. Banks chosen by the e-buyer check CIP for electronic payment slips and retrieves the payments slips relevant to that buyer

  6. Buyer’s banks present these electronic payment slips to the buyer

  7. Buyer pays the seller through any of its house banks using the electronic bank format for payments

  8. Once the payment file reaches CIP, it informs all banks about the status of payment

The following diagram indicates the main entities involved in DDA:

This graphic is explained in the accompanying text.

DDA: Bank Communication Scenario

The following diagram gives you a detailed description about the flow of information between the participating companies' banks for payments based on DDA.

In this example, you have the following entities:

  • Company A is the buyer and its bank is Bank A

  • Company B is the seller and its bank is Bank B

  • CIP is the intermediary organization between the companies' banks (Bank A and Bank B)

This graphic is explained in the accompanying text.