6 ways to encourage Direct Debit sign ups

Considering the value Direct Debit can have to business, it’s a shock that more don’t seek to promote this method of payment where they can. Its winning simplicity and cost-effectiveness encouraged your company to go down this payment route, but what’s encouraging your customers?

Actually, there’s a great deal that they can benefit from by choosing to pay in this way. So if Direct Debit is something you offer, it’s something you should be shouting from the rooftops – and if not then what are you waiting for?


Direct Debit Guarantee

This is not just some fancy banker terminology. The Direct Debit Guarantee acts as a safety net to customers, ensuring any incorrect payments are returned back to their account. Direct Debit is actually the safest payment method in the UK. It’s also amongst the most trusted.


No late payments

Direct Debit collection and payments are automated. Outside of checking statements, there’s very little in the way of manual labour. Think – no late payments, no awkward chase ups and no need for customers to bury their heads in the sand. Everything is collected on agreed payment dates, and an improved credit rating just is the cherry on top of the already fruitful cake.


Incentives and discounts

Direct Debit is just as simple for companies to implement as it is for customers. So if businesses can get more people on board then it’s a win –win situation. As such, many will offer discounts and incentives – not only will customers get the benefits that come with this payment method; they’ll also get cheaper rates without losing you any money. You’ll also score loyalty points.


Affordability – payment over a period of time

It’s far easier to pay for something in instalments than it is in one lump sum. With Direct Debit, customers can spread the costs in a way that is far more convenient for them. Billing dates are less rigid and can be set up weekly, fortnightly, monthly, quarterly etc. in a way that best suits them and your business.


Set up ease online and offline

Nobody likes to dither where payments are involved. So it’s great that beyond setup and cancellation, all that’s left to do is keep check of outgoings. Even better – it’s paperless.

DFC’s online joining portal FastDD allows companies to stay open for business 24/7 – customers are ready to go at the click of a button. The ease with which FastDD integrates into to you company’s website and the inherent nature of setting up direct debits online means that you can provide a clear and immediate call to action to your potential customers and improve conversion rates on your services in the process.


Payments can just as easily be set up over the phone (or face-to-face if preferable) with DFC’s simple and secure Electronic File Transfer. The process is quick and incredibly simple, and our customer service team are on-hand six days a week to handle enquiries.

Cost benefits of Direct Debit

At Debit Finance, we cannot rate the benefits of Direct Debit highly enough. We built an entire business around it for that reason!

One of the greatest rewards associated with this payment model is the sheer cost savings it can have for your business. Find out more on how Direct Debit’s can save your business money:


Cost efficiency compared other payment methods

Direct Debit’s can quite literally save you pounds. If you accept credit cards, you can expect this to cost two to three per cent per transaction, as well as a flat fee of 20-30p. Direct Debit proves a much cheaper alternative than cash, cheque and card.


Time on administration

Time is money. Any time spent focusing on payment management is time that can be spent elsewhere. Everything beyond setup (which can be completed quickly and conveniently using DFC’s online joining portal, FastDD) is automated. It requires little maintenance outside of payment tracking and monitoring.


Paperless payment storage is free

Direct Debit’s are as great for the environment as they are convenient. Every piece of Direct Debit documentation you receive needs a home. Thankfully, the majority of Direct Debits are paperless so there’s no need to fork out money for tangible filing and storage – good news for you and the planet.


Cash flow convenience

Late payments are a particular bugbear to all finance departments. Without knowing when payments are coming in, it’s very difficult to manage internal finances. By using Direct Debit, you can rest assured that specified amounts are coming in at specified times. Forward-thinking is crucial to business – luckily Direct Debit’s make it easier to plan ahead.


Cost spreading

Gyms and insurance companies are just some of the examples of businesses who offer monthly payment breakdowns, often on annual contracts. In setting up Direct Debit payments, the customer has agreed they are happy to relinquish this money to you, and your business is guaranteed income over that period.


Customer retention

Direct Debits can save money for your customers, so what better way to cement their loyalty? Flexible payment dates, cost spreading and the value it can have on their credit score all play a part in maintaining their trust, making them more inclined to stay with you than use a competitor.

At DFC, we go above and beyond to uphold fantastic customer service. We’ve even opened our call centre on a Saturday to ensure no request goes unheard. Happy customers mean a happy business. Our mission is to help you improve your relationships with your customers so that they stay longer.

You can leave us to collect your Direct Debits, while you concentrate on running – and growing – your business.

Using Direct Debits for one-off payments

Most consider Direct Debit a useful approach to managing ongoing cash flow. But did you know that it is also an effective method of handling ad hoc payments?

Many companies choose this option when an instant transfer of money isn’t required – for example, businesses collecting lone invoices or charities accepting donations. In fact, making payments in this way provides the same benefits that come with using Direct Debit for regular outgoings:



Direct Debits are controlled by the merchant, as opposed to the customer. Payment does not have to take place at the point a decision has been reached. Rather, funds can be transferred at an agreed later date without the hassle of invoicing or chasing customers.


Cost efficiency

If you accept credit cards, you can expect this to cost two to three per cent per transaction as well as a flat fee of 20-30p. Direct Debit proves a much cheaper alternative than cash, cheques and cards, whilst saving time (and therefore money) on administration.



Customers are protected under the Direct Debit guarantee, making Direct Debit the UK’s safest and most trusted payment model. When a payment error is made, banks and building societies will quickly rectify this with a full and immediate refund.


Customer satisfaction

The sheer simplicity of Direct Debit proves a big pulling factor for customers and businesses deciding on a payment model. If a customer already makes infrequent purchases to a merchant, the Direct Debit process is even easier.  A Direct Debit Instruction from the customer informs the bank of payment, after which the service provider will give the customer confirmation of the collection day and the amount.