The term direct debit denotes an order by which a bank account holder grants a third party the right to draw on their bank account. In Switzerland, a standard direct debit order is referred to as an LSV. With the exception of PostFinance, Swiss banks now offer the LSV+ standard which allows the account holder to dispute direct debit transactions. PostFinance uses its own Swiss Direct Debit (CH-DD) standard for direct debit orders.
To set up a direct debit order, the bank account holder must complete and sign a debit authorization form which grants a specified third party the right to debit money directly from their account on an ongoing basis. Once the direct debit has been set up, transactions are handled by the third party and the bank, with no need for further involvement on the part of the account holder.
The absence of recurring involvement makes direct debits a practical solution for paying recurring bills. This is especially true for variable bills such as phone, power and credit card bills because the biller can debit the exact amount owed each billing period. A standing order, on the other hand, has a fixed transaction amount which must be changed manually, so it is best suited to non-variable recurring transactions. The prerequisite is that companies offer LSV+ as a payment method.
Both the LSV+ and the CH-DD direct debit standards give you the option of disputing debits within 30 days of the transaction date.
Swiss banks generally do not charge any fees for direct debits from private accounts.
For businesses, Swiss banks also offer the BDD procedure.
The Swiss banks have decided to discontinue the LSV+ direct debit procedure as of September 30, 2028. As of summer 2025, the Swiss banks plan to introduce eBill Direct Debit as a digital successor product.
More on this topic:
Direct debits in Switzerland FAQ
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