What the Discontinuation of LSV+/BDD Direct Debits Means for Invoice Issuers

LSV+ enables an invoice issuer to automatically debit private individuals’ accounts for recurring payments such as rent or health insurance premiums. Business Direct Debit (BDD), on the other hand, is intended for corporate clients and is particularly relevant as a payment method where the business model follows the delivery-versus-payment principle.

LSV+ and BDD will be fully discontinued by September 30, 2028, meaning that direct debit collections can only be carried out until that date. This end date was deliberately chosen to give all parties sufficient lead time to switch to alternative payment methods. Since January 1, 2026, new registrations for LSV+ or BDD have no longer been possible, ensuring that new clients use a digital alternative from the outset.

When switching from LSV+ and BDD, invoice issuers can choose from several established payment methods:

• eBill: Digital invoicing directly in the online banking of the client, without the need to enter payment details manually
• QR-bill: Structured payment data provided via a QR code that can be scanned in online banking or a banking app
• Standing order: A fixed recurring amount set up by the client in online banking
• Single payment order: A manual payment for each invoice, without automated collection

Compared with the existing paper-based schemes, digital solutions offer two key benefits: simpler onboarding and administration because paper forms are no longer required, and greater transparency regarding successful or rejected payment approvals.

Switching to eBill Direct Debit offers tangible, measurable benefits for everyone involved:

For invoice issuers:

• Digital registration process: Mandates are set up once online, without paper forms or manual, repetitive data entry
• Value-date execution: Payments are made exactly on the agreed date, enabling more precise liquidity and cash flow planning
• Greater transparency: Successful and rejected approvals can be tracked digitally, simplifying reconciliation with accounting

For invoice recipients:

• Full control: Each payment is displayed before execution in the familiar eBill environment within online banking, with no need to switch between channels
• Digital reversal process: In the event of an incorrect or unauthorized debit, the amount can be reclaimed directly in eBill with just a few clicks, without a paper form or a call to the bank
• Security and trust: Secure digital payment processes are essential for the acceptance of such solutions. eBill Direct Debit uses the established infrastructure of eBill and the Swiss payment system
• One central location for all invoices: eBill Direct Debit mandates appear in the same online banking area as regular eBill invoices and can also be viewed in the archive

For financial institutions:

• ISO 20022 compatibility: Unlike LSV+ and BDD, eBill Direct Debit is designed for the internationally established payment standard
• Lower default risk: The digital approval process reduces failed or rejected direct debits compared with the previous paper-based payment system

Invoice recipients receive their eBill invoices securely and directly in online banking. They only need to review and approve them for payment online. By contrast, an invoice sent by email requires payment recipient details and a reference number to be entered in online banking. Alternatively, the invoice can be scanned, but users still have to switch between email and online banking. eBill combines both in a single, secure digital channel.

Switching from LSV+ and BDD to an alternative payment method involves some effort for invoice issuers because existing billing processes need to change. This may require adjustments to individual software components, such as accounting applications. However, moving from an analog payment method to a fully digital process such as eBill or eBill Direct Debit brings a range of efficiency gains. Despite the one-time effort, such a switch therefore pays off in the long term.

Invoice issuers should select an alternative invoice format at an early stage and coordinate the necessary steps with their financial institution and software partner. This will help ensure that a suitable alternative to LSV+ or BDD is in place by the end of September 2028.

Invoice issuers will be informed by their financial institution about the discontinuation of LSV+ and BDD and about alternative payment options. For further information or questions, invoice issuers can also contact their financial institution and software partner directly.

The processes don’t meet today’s digital standards and aren’t fully compatible with the ISO 20022 payment standard. Moreover, transaction numbers are declining, and alternative digital payment methods are generally on the rise.