In order to make payments through the direct debit system, a payee must agree to use this collection system and sign a contract with the payer establishing the terms and conditions for direct debit collection. Payers must authorise their payment service provider to debit payments initiated by the payee from their account. Direct debit mandates require the payer’s paper-based or digital signature. Direct debit mandates given over the phone or made by verbal agreement are not valid, except for direct debit mandates given over the phone if they are certified according to a probative convention previously agreed between payee and payer.

The payment service provider must also agree to pay direct debits, by entering with the payer into a payment services contract that includes direct debits. The contract establishes the rights and obligations of both parties regarding the payment of direct debits.