Another important part of collecting payment by Pre-Authorized Debit is knowing how to use originator identification numbers. Here, we delve into this topic in further detail.
What are originator identification numbers?
They act as unique identifiers for organisations collecting Pre-Authorized Debit payments. They will be included on the payment requests you submit to your bank, and stored to create records of the transactions. Your customer will see a reference of your originator identifier on their bank statement when you collect a payment from them.
How do I get an originator identification number for my organisation?
All Canadian banks that are part of ACSS can issue originator identification numbers Every bank has its own process for accessing Pre-Authorized Debit, but all will require your organisation to meet the following points (although banks make sponsorship decisions at their own discretion and can also impose additional requirements):
Having sufficient management expertise to enforce system rules, minimise submission errors, and maintain system reputation.
Having sufficient contractual capacity to indemnify the sponsor bank against any reimbursements made. The sponsor bank is required to obtain a ‘Payee Letter of Undertaking’, which must include mandatory provisions set out by the ACSS rules.
Using GoCardless' originator identification number
If you decide to use GoCardless to take customer payments, you can benefit from the extra convenience of using an originator identification number that’s owned by GoCardless.
In this case, you won't need to go through a bank to access the Pre-Authorized Debit system, as GoCardless satisfies all scheme requirements as part of its service. As all payments are collected under a single banking agreement, GoCardless is able to attract scale benefits, which it then passes on to its customers.