Overview

When a client changes their bank account, you need to update their details in DEFT before you can submit payments to them. This guide explains how to update bank account information and manage mandates correctly.

The key is understanding the difference between updating an existing mandate and creating a new mandate—getting this wrong can cause payment rejections.

Before you begin

You’ll need: - Administrator access to DEFT - The client’s new bank account details (name, BIC, IBAN) - Knowledge of whether the client signed a new mandate or just changed banks on an existing mandate - Access to the client’s payment record in DEFT

Understanding mandates: New vs. Amended

This is critical. There are two different scenarios when a client changes their bank account:

Scenario 1: New mandate (client signed a new authorisation)

When this applies: The client has signed a fresh SEPA mandate authorising you to collect payment from their new account. The old mandate is no longer valid.

What you’ll need: - New mandate reference or ID - Signature date (the date they signed the new mandate) - The client’s new bank details (BIC, IBAN)

What you do in DEFT: Create a new mandate record.

Scenario 2: Amended mandate (same mandate, just updated account)

When this applies: The client’s bank changed their BIC or IBAN (for example, due to a bank merger), but the mandate itself remains valid. No new signature was required.

What you’ll need: - The client’s existing mandate reference/ID - Updated BIC and IBAN only

What you do in DEFT: Update the existing mandate record.

If you’re unsure which applies, ask the client: “Did you sign a new mandate, or did your bank just change your account number?”

Steps to update a client’s bank account

Step 1: Open the client’s payment record

1. In DEFT, navigate to Payments > Payment Records (or similar menu)
2. Find and select the client whose account details need updating
3. The client’s record will open, showing their current details

[Insert screenshot showing payment record with tabs: Payment, General Details, Mandate Management, etc.]

Step 2: Decide: New mandate or amended mandate?

Look at the client’s current mandate record:

• Is there an existing mandate ID? If yes, check whether they signed a new mandate.
  • If they signed a NEW mandate: Proceed to “New Mandate” steps below
  • If it’s the SAME mandate: Proceed to “Amended Mandate” steps below
• No existing mandate? Proceed to “New Mandate” steps below

Step 3A: If creating a NEW mandate

1. In the client’s payment record, navigate to the Mandate Management tab
2. Click New Mandate or Add Mandate
3. Enter mandate details:
   • Mandate Reference/ID: The unique identifier for this mandate (provided by the client or your mandate management system)
   • Signature Date: The date the client signed this mandate (must be before the first payment date)
   • Bank Account Name: The name on the client’s bank account (must match exactly)
   • BIC: The bank’s SWIFT code (usually 8–11 characters)
   • IBAN: The International Bank Account Number (22 characters for Irish accounts, starting with IE)
4. Set collection type:
   • For the first payment using this new mandate, set Collection Type to FRST (First)
   • Subsequent payments will use RCUR (Recurrent)
5. Save the mandate
6. Update the client’s payment details with the new account information

[Insert screenshot showing New Mandate dialog with all required fields]

Step 3B: If amending an EXISTING mandate

1. In the client’s payment record, navigate to the Mandate Management tab
2. Find the existing mandate in the list
3. Click Edit or Amend
4. Update only the following fields:
   • BIC: The bank’s new SWIFT code (if changed)
   • IBAN: The client’s new account number
5. Do NOT change:
   • Mandate Reference/ID (keep the same)
   • Signature Date (keep the original date they signed)
   • Collection Type (remains RCUR unless specified otherwise)
6. Save the changes

[Insert screenshot showing Amend Mandate dialog with BIC and IBAN fields highlighted]

Step 4: Update the client’s general details

1. In the payment record, navigate to General Details tab
2. Verify or update:
   • Client name (must match bank account holder name)
   • Address (required for non-EEA countries)
   • Email (optional)
3. Ensure the name exactly matches the bank account holder name. Mismatches cause payment rejections.
4. Save the changes

Step 5: Verify the new account details

Before submitting a payment to the new account, double-check everything:

1. Open the client’s payment record again
2. Review all fields:
   • Bank Account Name: Matches bank records exactly
   • BIC: Correct (8–11 character code)
   • IBAN: Correct (22 characters for Ireland, no spaces)
   • Mandate Reference: Correct and matches the mandate on file
   • Mandate Signature Date: Correct
3. If anything looks wrong, go back and correct it

Common mistakes to avoid: - Spaces in the IBAN (remove them) - Account name doesn’t match the bank’s records - Wrong BIC code - Old mandate still active when a new one was signed

Step 6: Test with a small payment

Before submitting a full payment to the new account:

1. Create a test payment for a small amount (e.g., €1.00)
2. Submit it to DEFT
3. Check the payment status in your bank (wait 1–2 working days)
4. Ask the client to confirm receipt

Once the test payment succeeds, you know the account details are correct.

Result

The client’s bank account details are now updated in DEFT. You can submit payments to their new account using the updated mandate. Future payments will use this new information automatically.

Troubleshooting

Payment rejected: “No valid mandate”

Possible cause: You created a new mandate, but didn’t set the first collection type to FRST, or the mandate reference is incorrect.

Resolution: 1. Go back to the Mandate Management tab 2. Verify the new mandate exists and is marked as active 3. Check the mandate reference matches the bank’s records 4. For the first payment, ensure Collection Type is set to FRST 5. Resubmit the payment

Payment rejected: “Account name mismatch”

Possible cause: The account name in DEFT doesn’t match what the bank has on file.

Resolution: 1. Ask the client to confirm the exact name on their bank account 2. In DEFT, update the Bank Account Name field to match exactly (including punctuation, spaces, capitalization) 3. Resubmit the payment

Payment rejected: “Invalid IBAN”

Possible cause: The IBAN is incorrectly formatted, contains spaces, or doesn’t exist.

Resolution: 1. Ask the client to verify their IBAN from their bank statement or online banking 2. In DEFT, update the IBAN field, ensuring: - No spaces (format should be: IE94BOFI90000112345678) - 22 characters for Irish accounts - Starts with IE for Irish banks 3. Verify the BIC code is correct 4. Resubmit the payment

I’m not sure if the client signed a new mandate

Resolution: 1. Contact the client directly and ask them to confirm 2. Ask them: “Did you sign a new SEPA mandate document, or did your bank just change your account number?” 3. Once they confirm, follow the appropriate steps above (new mandate vs. amended mandate)

Frequently asked questions

Q: Do I need a new mandate every time the client changes banks? A: Yes, if they’re signing a new authorisation. If they’re just updating their account number with the same bank, you may only need to amend the existing mandate. Ask the client or their bank.

Q: What if the client hasn’t signed a new mandate? A: You cannot collect payment to their new account until they sign a mandate. Reach out to them and ask them to sign a SEPA mandate for their new account.

Q: Can I use an old mandate on a new account? A: No. Each mandate is specific to the bank account on file when it was signed. A new account requires a new mandate (or amendment if it’s the same mandate with updated details).

Q: What’s the difference between BIC and IBAN? A: The BIC identifies the bank (like a bank code). The IBAN is the full account number. Both are required for SEPA payments.

Q: How long does it take for the new account details to take effect? A: Immediately in DEFT. New payments submitted after you’ve updated the record will use the new account details.

Q: What if the client changes banks again? A: Repeat the process. If they sign another new mandate, create a new mandate record. If they just update their account number, amend the existing mandate.

Q: Do I need to delete the old mandate? A: You can deactivate it in DEFT (mark as “no longer in use”), but it’s good to keep it in your records for audit purposes. Ask your accountant for your organisation’s record retention policy.

Q: Can I update multiple clients’ accounts at once? A: Not directly in DEFT’s interface, but you can import updated account details via CSV if you have many clients to update. See related articles on importing payment records.