Italy – Migrating RID to SEPA Direct Debit

I thought I had this whole SEPA malarkey figured out. For payments we implement the SEPA XML PAIN.001 format, and for direct debit collections the SEPA PAIN.008 format. Of course, we all recognise the additional complexities of a SEPA Direct Debit implementation. Namely, the need for a SEPA Creditor Identifier, understanding the difference between SEPA CORE and SEPA B2B Schemes and where available SEPA COR1 direct debits. But after a few SEPA direct debit implementations, you know what you need to do…

All was going well until we reached Italy. The requirement was to migrate the existing RID Ordinario / RID Veloce to SEPA direct debit. The bank, who shall remain nameless, informed us that they were not ready to receive a SEPA XML (PAIN.008) format. Instead, we needed to migrate the business direct debit collections to a ‘enhanced’ or ‘enriched’ RID format which included all of the required SEPA direct debit fields/values.

Refer to the SEPA Direct Debit – Key Considerations post for details of the mandatory data elements for SEPA direct debit collections. Knowing the required SEPA direct debit information is critical. The next step in the migration of RID to SEPA is understanding the required ‘SEPA enhanced’ RID format. Easy, right? Well, kind of…. The only enhanced RID SEPA direct debit format specification I could find was in Italian. The specification is found at Consorzio CBI. The ERP developers I was working with were offshore, and needed the requirements in English. I translated the required changes from Consorzio CBI into English and have shared these required changes in this post. Please note, I have not translated the whole RID SEPA direct debit format, only the changes that you need to make to migrate your existing ‘legacy RID’ to the required ‘SEPA RID’ format.

RID / SEPA Direct Debit File Format Overview:

The SEPA RID format consists of following records:

• Header Record – Identified by Record Type ‘IR’- This is an existing / legacy required record, and must be retained
• Record Type ’10’ – This is an existing / legacy required record, and must be retained
• Record Type ’16’ – This was previously optional, but must be added for RID SEPA direct debit collections
• Record Type ’17’ – This is a new record format, and must be added for RID SEPA direct debit collections
• Record Type ’20’ – This is an existing / legacy required record, and must be retained
• Record Type ’30’ – This is an existing / legacy required record, and must be retained
• Record Type ’40’ – This is an existing / legacy required record, and must be retained
• Record Type ’50/60′ – This is an existing / legacy required record, and must be retained
• Record Type 70′ – This is an existing / legacy required record, and must be retained
• Trailer Record – Identified by Record Type ‘EF’ – This is an existing / legacy required record, and must be retained

Required Changes:

1. SEPA RID Header Record Structure – Record Type ‘IR’

• All existing fields in this record must be retained, but you may need to change the following value as required
• Position 113: Type of RID
  • The existing / legacy value is either blank or V
  • The required SEPA values are either:
    • Blank or ‘U’ – indicating SEPA CORE direct debit (formerly RID Ordinario)
    • ‘V’ – indicating SEPA B2B direct debit  (formerly RID Veloce)

2. SEPA RID Record Structure – Record Type ’10’

• All existing fields in this record must be retained, but you may need to change the following value as required
• Position 119: Type of RID
  • The existing / legacy value is either blank or V
  • The required SEPA values are either:
    • Blank or ‘U’ – indicating SEPA CORE direct debit (formerly RID Ordinario)
    • ‘V’ – indicating SEPA B2B direct debit (formerly RID Veloce)

3. SEPA RID Record Structure – Record Type ’16’

• Position X: Field Name – Field Value
• Position 1: Filler – Blanks
• Position 2-3: Record Type – ’16’
• Position 4-10: Row / record number in the file – Sequential record number
• Position 11-44: Creditor IBAN
• Position 45-79: Creditor Identifier Code
  • Get your Italian Creditor Identifier Code from your bank. The Creditor Identifier will consist of:
  • Characters 1-2: ‘IT’
  • Characters 3-4: Check digit code
  • Characters 5-7: Creditor Business Code – sometimes defaulted to ‘ZZZ’
  • Characters 8-23: National fiscal code, assigned by the Italian Tax Agency. If this is the VAT code (10 characters), it will be prefixed with zeros
• Position 80-120: Filler – Blanks

4. SEPA RID Record Structure – Record Type ’17’

• Position X: Field Name – Field Value
• Position 1: Filler – Blanks
• Position 2-3: Record Type – ’17’
• Position 4-10: Row / record number in the file – Sequential record number
• Position 11-37: Debtor (customer) IBAN
• Position 38-41: Sequence Type – ‘FRST’, ‘RCUR’, ‘FNAL’, ‘OOFF’
• Position 42-47: Subscription Mandate Date:
  • For new customers – Mandate signature date
  • For migration customers – Migration date
• Position 48-120: Filler – Blanks

5. SEPA RID Record Structure – Record Type ’70’

• All existing fields in this record must be retained, but you may need to change the following value as required
• Position 96: Reversal Charge
  • The required SEPA values are either:
    • ‘8’ – indicating SEPA CORE direct debit
    • ‘3’ – indicating SEPA B2B direct debit

6. SEPA RID Trailer Record Structure – Record Type ‘EF’

• All existing fields in this record must be retained, but you may need to change the following value as required
• Position 83-89: Number of records – don’t forget to include the newly added records (’16’/’17’) to this counter
• Position 113: Type of RID
  • The existing / legacy value is either blank or V
  • The required SEPA values are either:
    • Blank or ‘U’ – indicating SEPA CORE direct debit  (formerly RID Ordinario)
    • ‘V’ – indicating SEPA B2B direct debit  (formerly RID Veloce)

Hope that helps with your migration of RID to SEPA direct debit collections! Good luck…