MEPS Direct Debit

CONSUMER

1. What is MEPS’ role in Direct Debit?

MEPS provides technical expertise as well as interbank switching and routing infrastructure for the banks. MEPS will also manage the clearing and settlement for the banks.

2. How does MEPS Direct Debit works?

MEPS Direct Debit is a simple, safe and convenient way for consumers to pay bills or make regular/recurring payments directly from their bank accounts such as insurance premium, utility bills, educational loans, loan installment payment etc. You simply need to agree with the merchant on the amount to be paid and the frequency and date of payment. Your authorization will be forwarded to your bank for signature and approval verification. The amount will be deducted from your account as agreed.

Here are the simple steps:

  • You must complete the MEPS Direct Debit Authorization Application Form (or Collection Application Form) to authorize the merchant to debit your account for the agreed amount and frequency from your bank account.
  • The merchant will then notify your authorization instruction onto your bank to deduct the agreed amount from your account for verification of signature and approval
  • Upon approval, the agreed amount will be automatically deducted from your bank account for the recurring payments to your merchant’s account.
  • You need to make sure you have sufficient funds in your account when the payment is due.
3. How will MEPS Direct Debit benefit the customers?

Secure
It is more secure than paying by cheque or cash, because the fund is deducted from your account and credited directly into your merchant’s account. It is the safest way to pay your bills and make regular payments. So, bills are never forgotten or lost in the mail and there’s no risk of late payment charges.

Certainty
Your payments will be made on time each month thus providing an added convenience in your financial management.

Saves you time
You know exactly when your bills will be paid, and if it is a fixed payment, you will know exactly how much you will pay as well. This can help you to better manage your money and stay one step ahead when it comes to expenditures.

4. What are the participating banks for MEPS Direct Debit?

Currently, there are 12 participating banks:

  • Bank Islam
  • Bank Kerjasama Rakyat
  • CIMB Bank
  • Citibank Berhad
  • Deutsche Bank
  • Hong Leong Bank
  • HSBC Bank
  • Maybank
  • OCBC Bank
  • Public Bank
  • RHB Bank
  • Standard Chartered Bank
5. What do I need to do to make payments via MEPS Direct Debit?

Contact the organisation or company that you wish to make payment. Find out if they offer MEPS Direct Debit as form of payment. They will arrange for you to complete a Direct Debit Authorization Application Form (or Collection Application Form).

Once the form is completed, the merchant will update its payment records and forward the instruction onto your bank. Only the agreed amount on the agreed date will be deducted from your account.

Please make sure that there is enough funds in your account when payment is due.

6. Are there any charges for payments via MEPS Direct Debit?

Charges or fee will depend on the merchant.

7. Is there a limit to the number of transactions via MEPS Direct Debit that I can make in a day?

There is no limit for the number of direct debit transactions that you can make in a day.

8. How do I cancel MEPS Direct Debit authorization?

If you need to cancel a direct debit authorization, simply fill-up the Direct Debit Termination Form (also called “CAF Termination Form”) which can be obtained from your merchant.

9. What is the maximum transaction limit?

There is no limit on the value of your transaction.

MERCHANT

1. What is MEPS’ role in Direct Debit?

MEPS provides technical expertise as well as interbank switching and routing infrastructure for the banks. MEPS will also manage the clearing and settlement for the banks.

2. How does MEPS Direct Debit works?

MEPS Direct Debit is a convenient and efficient interbank direct debit service for companies to collect regular and recurring payments. It is an instruction from the customer to their bank authorizing the participating merchants to collect funds from their account at any of the participating banks. MEPS Direct Debit enables automated collection directly from a customer’s bank account via a single authorization.

Here are the simple steps:

  • The customer must complete the MEPS Direct Debit Authorization Application Form (currently known as ‘Collection Application Form’) to authorize the merchant to debit their account for the agreed amount and time.
  • The merchant will submit the Collection Application Form to the customer’s bank for approval to deduct the agreed amount from their account on the specified frequency.
  • Upon approval, the agreed amount will be automatically deducted from your bank account for the recurring payments to your merchant’s account.
3. What are the benefits of MEPS Direct Debit?

Flexibility
Payment plans can be set up automatically according to collection frequency. Merchants also have complete control over who, what and when client collections are made. These allows for a more predictable cash flow.

Reduces cost
It reduces time taken to collect payment and other administrative costs. Bank charges will be reduced as there is only one credit to your bank account per collection.

Complete control
Direct debit allows for fixed and variable amounts to be collected on variable dates. This means every collection will be correct and on time. Plus, it reduces customer attrition and increases renewals.

4. How to be a MEPS Direct Debit merchant?

The merchant has to register with any of the participating banks. For more information, please send an e-mail to directdebitinfo@meps.com.my. The MEPS Direct Debit team will assist you further.

5. What are the participating banks for MEPS Direct Debit?

Currently, there are 12 participating banks:

  • Bank Islam
  • Bank of America
  • CIMB Bank
  • Citibank Berhad
  • Deutsche Bank
  • Hong Leong Bank
  • HSBC Bank
  • Maybank
  • OCBC Bank
  • Public Bank
  • RHB Bank
  • Standard Chartered Bank
6. Is there a limit to the number of transactions via MEPS Direct Debit that I can receive in a day?

There is no limit to the number of direct debit transactions.

7. What is the maximum transaction value limit?

There is no limit on the value of transaction.