The "elektronisches Lastschriftverfahren (ELV)" - a direct debit process - is the most popular payment method in Germany. If you want to serve your German customers by offering ELV, you do, however, need to keep an eye on the bad debt problem.

This is particularly important in the services industries, where your services, like travel and holiday products, are consumed within a short period after purchase, leaving the merchant with a considerable risk of non-payment resulting from the possible cancellation of the direct debit transaction.

Pago ELV Check can help to protect you against this risk - at least against persons, who are known for abusing ELV transactions in this way.

Overview

	ELV black list
	Pago ELV Check process

ELV black list

Pago ELV Check is based on cross-checking an ELV black list which contains outstanding direct debits from throughout Germany and is continuously updated by numerous large merchants. Every point-of-sale customer who pays using his paying his EC card at a card terminal accepts with his signature that

	information may be requested from his bank
	cancelled direct debits can be recorded in the black list
	the black list may be used by other companies

Information stored in these black lists originates from the direct debit cancellation processing by a terminal network service provider; blocked card numbers are obtained from the so-called "KUNO" project run by the German police authorities.

Cancelled direct debits are submitted to the black list, cleared direct debit cancellations are erased accordingly. Erasure can be triggered by payment of the outstanding direct debit or by the so-called "repechage" process.

 to top

Pago ELV Check process

If Pago ELV Check is implemented for you, a check is conducted, whether the given account number exists with the ELV blocking file. If so, the transaction will be rejected.

 go up

Your benefits:

	reduced number of bad debths
	thus less non-payment risk - which means: lower cost of payment and optimized cash flow

 go up