Registered Mandate Collections, Tracking and Settlement

Registering a mandate is only the first half of the process — the value comes from collecting against it. Registered mandate collections run on the same modern ISO 20022 rails as DebiCheck, which means early-window processing and tracking for available funds, two features that ordinary EFT debit orders do not enjoy.

This page explains how collections against registered mandates are submitted, how the tracking mechanism works, and how settlement reaches your account.

How do you submit a collection against a registered mandate?

Each collection is a payment instruction that references the registered mandate at the payer's bank:

1. You (or your payment provider) submit the collection for the agreed action date, with an amount and terms that match the registered mandate.
2. The instruction flows via your sponsoring bank to the payer's bank.
3. On the action date, the payer's bank attempts to debit the payer's account.
4. The outcome — paid, unpaid or in tracking — is reported back to you.

The collection must stay within the registered mandate's terms. If the contract terms have changed, amend the mandate first; see The Registered Mandate Lifecycle Explained.

When do registered mandate collections process?

Registered mandate collections process in the early processing window each day — the window in which the modern collection streams debit accounts before other payment activity. Within that window they run as second priority: authenticated DebiCheck collections process first, then registered mandate collections.

This still puts you well ahead of ordinary EFT debit orders, which process later. When a payer's account holds limited funds, position in the processing order often decides which debit gets paid, so the early window materially improves your success rates.

How does tracking work?

Tracking is the feature that re-presents a collection when the account has insufficient funds at the first attempt. Registered mandate collections support tracking for available funds for a period of up to ten days, the same as DebiCheck.

In practice:

• If the first debit attempt fails for insufficient funds, the collection enters tracking rather than immediately returning unpaid.
• The payer's bank monitors the account and debits it when sufficient funds become available within the tracking period.
• If the tracking period ends without funds becoming available, the collection is returned unpaid.

Tracking should be disclosed to the payer in your mandate — see the credit tracking disclosure in minimum mandate requirements. Choose a tracking period that suits your book: longer tracking captures more late salary deposits, but delays certainty about the outcome.

When do you receive settlement?

Once a collection is successfully debited, the funds settle through the interbank clearing and settlement process into the collections account operated by your sponsoring bank or payment provider, and from there are paid over to you according to your settlement arrangement.

Timing depends on your setup, but the general pattern is:

• Successful collections settle after the interbank settlement cycle for the action date.
• Collections paid out of tracking settle when the tracked debit succeeds, which can be any day within the tracking window.
• Your provider then pays the settled funds to your nominated account per your agreed settlement schedule.

Reconcile settlements against your submitted collections rather than assuming totals — some collections will be unpaid, some will still be in tracking, and some may later be disputed. For the mechanics, see Clearing, Settlement and Reconciliation.

What can you do to maximise collection success?

• Align action dates with payers' salary dates where possible.
• Use tracking on collections where payers' cashflow is unpredictable.
• Keep registered mandate terms up to date so collections are never rejected for mismatching an amended contract.
• Monitor unpaid reasons and adjust strategy per payer; see Returns and Disputes.

Kwik submits registered mandate collections, manages tracking and reconciles settlement for you, reporting each collection's status so your billing system always reflects the true outcome.

Related topics

• Registered Mandates hub
• Registered Mandate Returns and Disputes
• DebiCheck Collections, Tracking and Retries
• Clearing, Settlement and Reconciliation