Overview

When setting up SEPA payments in DEFT, you’ll encounter different payment options from your bank: Instant Credit Transfer, Standard Credit Transfer, and SCT (SEPA Credit Transfer). This guide explains what these mean, which one to choose, and whether you need to upgrade DEFT.

Your bank may recommend one option over another. This article helps you understand the differences and configure DEFT correctly.

SEPA payment options explained

Standard Credit Transfer (SCT)

What it is: Traditional SEPA payment that takes 1 business day to reach the recipient’s account.

Typical flow: - You submit payment on Day 1 - Recipient receives funds on Day 2 (next business day) - Cost: Low (€0–€1 per transaction)

When to use: - Regular employee payments (payroll) - Supplier invoices (where 1-day delay is acceptable) - Non-urgent transactions - Most cost-sensitive operations

In DEFT: Referred to as “SEPA Credit Transfer” or “SCT” in configuration.

Instant Credit Transfer (SCT Instant)

What it is: Fast SEPA payment that reaches the recipient within seconds to minutes.

Typical flow: - You submit payment immediately - Recipient receives funds within seconds (usually < 30 seconds) - Cost: Higher (€0.50–€5 per transaction depending on bank)

When to use: - Urgent payments - Emergency cash needs - Time-critical situations (e.g., last-minute supplier payment) - Recipient requests immediate payment

Limitations: - Not all banks support it (check with yours) - Most Irish banks now support Instant Transfers, but older banks may not - Amount limits may apply per transaction - Usually higher transaction fee

In DEFT: Referred to as “Instant Credit Transfer”, “SCT Instant”, or “Instant SEPA” in configuration.

Direct Debit

What it is: A standing authorisation allowing you to pull money from a customer’s account on a schedule.

Typical flow: - Customer signs a mandate authorising payment collection - You submit a batch of collections - Funds are collected 1–2 days later - Cost: Low (similar to Standard SCT)

When to use: - Recurring subscriptions - Regular membership fees - Regular contractor payments where amounts are consistent - B2B collections

In DEFT: Configured as a separate payment type, not SCT. Requires mandate management.

What your bank is probably asking you to choose

Your bank may ask: “Do you want Instant or Standard?”

This is asking which payment speed you prefer for your organisation’s outbound payments.

How to decide

Configuring payment options in DEFT

Step 1: Check what your bank offers

1. Log in to your bank’s online portal or contact your relationship manager
2. Ask: “Which SEPA payment options do you offer?”
   • Standard Credit Transfer (SCT)
   • Instant Credit Transfer (SCT Instant)
   • Direct Debit
3. Ask: “Are there additional fees for each option?”
4. Ask: “Do you have any amount limits on Instant Transfers?”

Step 2: Configure in DEFT

In DEFT, you set up payment methods that match your bank’s offerings:

1. Go to Settings > Payment Methods (or Configuration > Payment Types)
2. You’ll see options like:
   • Standard SEPA Credit Transfer
   • Instant SEPA Credit Transfer
   • SEPA Direct Debit
3. Enable the options your bank supports:
   • Check Standard SCT if you want regular 1-day payments
   • Check Instant SCT if you want immediate payments
   • Check Direct Debit if you need recurring collections
4. For each payment method, configure:
   • Your creditor identifier (for Direct Debit)
   • Your IBAN (for all methods)
   • Your bank’s BIC code
5. Save settings

Once configured, when you create a payment, DEFT will let you choose which payment method to use (Standard vs. Instant).

[Insert screenshot showing DEFT Settings > Payment Methods configuration]

Step 3: Use the right option when creating payments

When you create individual payments in DEFT:

1. Go to Payments > New Payment
2. Enter recipient details (name, IBAN, amount)
3. Select Payment Type:
   • Choose Standard SCT for regular payment (1 day)
   • Choose Instant SCT for urgent payment (seconds, higher cost)
   • Choose Direct Debit for recurring collections (requires mandate)
4. Submit the payment

Do I need to upgrade DEFT to use Instant Transfers?

Short answer: Probably not.

Most modern versions of DEFT (v5.0+) support both Standard and Instant transfers. If your version is recent, the option should already be available.

How to check if your DEFT supports Instant Transfers

1. Go to Help > About DEFT
2. Note your version number (e.g., “DEFT v5.8”)
3. Go to Settings > Payment Methods
4. Look for “Instant SEPA Credit Transfer” or “SCT Instant” option

If you see the Instant option, you’re good. If not, your version may need updating.

If your version doesn’t support Instant Transfers

Contact Bright Software to: 1. Check if your DEFT version supports Instant Transfers 2. If not, discuss upgrading to a version that does 3. Understand any costs or data migration involved

Data migration: If you upgrade DEFT, your existing payment records will transfer. No data is lost.

Troubleshooting: Your bank says “use Standard” but you want Instant

Scenario: Your bank recommended you use Standard (1-day) payments instead of Instant.

Why they might recommend this: - Lower transaction fees (cost savings) - Instant transfers have amount limits (bank-side restriction) - Your payment volume may be better suited to batch processing - Instant transfers are newer; some banks push Standard for stability

What to do: 1. Ask your bank: - “Can I use both Standard and Instant, or must I choose one?” - “What are the fees for each?” - “Are there amount limits on Instant Transfers?”

1. If you want flexibility: Configure both in DEFT and choose per payment
2. If your bank mandates one: Follow their recommendation and configure only that option in DEFT

Troubleshooting: Bank data migration when changing payment options

Scenario: You’re switching from Standard to Instant (or vice versa), and you’re worried about existing payment records.

Good news: Switching payment options does NOT affect existing data.

• Your customer/supplier records remain unchanged
• Your bank account mandates remain valid
• Existing payment history is preserved
• You simply choose a different payment method for new payments going forward

To switch: 1. In DEFT Settings > Payment Methods, enable/disable the options as needed 2. Create new payments using the new option 3. Old payments remain unchanged

Bank rulebook changes and SEPA schemas

Sometimes banks update their SEPA specifications or “rulebook” (ISO 20022 standard changes). You may receive a notice from your bank saying:

“The SEPA Rulebook is changing. You must update your payment files by [date].”

This means: The technical format of SEPA payment files is changing, and DEFT may need an update to remain compliant.

See the related article: Upgrading DEFT and managing SEPA schema versions for guidance on staying compliant with bank updates.

Frequently asked questions

Q: Which payment option costs less? A: Standard Credit Transfer (1 day) is typically cheaper than Instant (seconds). Direct Debit is also low-cost. Check your bank’s fee schedule.

Q: Can I use Instant Transfers for payroll? A: Yes, though most organisations use Standard for cost savings. You could use Instant for bonuses or emergency payments if needed.

Q: Will switching to Instant increase my costs significantly? A: Depends on payment volume. If you process 100 payments/month and Instant costs £1 more per payment, that’s £100/month. Discuss with your bank.

Q: Do my customers need to do anything if I switch from Standard to Instant? A: No. The payment arrives faster, but your customers don’t need to change anything on their end. They’ll simply receive money sooner.

Q: Can I use Standard for some payments and Instant for others? A: Yes, if your bank supports both and DEFT is configured for both. You choose the method when creating each payment.

Q: Is Direct Debit the same as Standing Order? A: No. Direct Debit: you initiate collection from the customer (requires mandate). Standing Order: customer sets up a regular payment to you (no mandate needed from you).

Q: Do I need a new DEFT license to use Instant Transfers? A: No. License covers all payment methods. But your DEFT version must support Instant (v5.0+).

Q: What if my bank doesn’t support Instant Transfers? A: Use Standard Credit Transfer. Ask your bank when they’ll support Instant, or switch banks if Instant is critical for your business.