Direct Debit is the UK’s preferred method for recurring payments!

The figures are in! In 2017 alone, Brits have sent over £1.3 trillion through Direct Debit transactions. You read that right – that’s nearly 4% growth on the previous year.

9 out of 10 adults in the UK have at least one Direct Debit and a whopping 74% of all payments made by volume take place as a Direct Debit transaction!

Let’s look more into why Direct Debit has established itself as the preferred method for the UK to send recurring payments.

 

It’s easy and fast… 

And convenient! In fact, it takes away the one most annoying features of recurring payments – maintenance. With mortages, car insurance, loans and subscriptions coming out our ears, keeping track is a nightmare. Payments are managed by companies, rather than individuals. This way the customer can have a breather and the service provider can be sure that they’re not missing out on late or cancelled payments.

 

 It’s safe

One of the safest payment methods there is, in fact. Direct Debits are bound to the Direct Debit Guarantee, a safety net that ensures no changes can be made without prior knowledge and a swift refund is issued in the event of an error. Direct Debits can also be cancelled at any time. There is so much governance around Dirct Debits that it’s highly uncommon for things to go awry.

 

 It’s cost-effective

For retailers and consumers alike. From a business perspective, time is money. Any time spent focusing on payment management is time that can be spent elsewhere. Direct Debit is automated so very little admin is required. Add that to the fact that it’s a much cheaper alternative than cash, cheque or card and this usually translates to discounts for customer’s who sign up on a Direct Debit.

 

 It’s flexible

Unlike other methods of payment, Direct Debit allows for full flexibility with payment dates and amount, without the need to make your customers submit a brand new mandate (this is not the case with standing order). Payments can be aligned to the peaks and troughs of business – if your rate changes, or your organisation is due to close for a refurb, payments can easily be amended. Direct Debits can even be used to make one-off payments.

 

Why choose DFC for your revenue management solutions?

We have years of experience behind us – our mission is to help you improve and grow your business and improve your relationship with your customers.

Data protection in finance is of the highest importance

Many people think that banks and financial services were the first in the line for financial scrutiny after GDPR came into force – and they’re not wrong. Due to the nature of the sector, financial matters require processing of vast amounts of personal information that is usually very sensitive. The fines for non-compliance are eye-watering and we must take every care to ensure the confidentiality of our clients’ data.

What steps must be taken to ensure customers’ information is protected?

There are a number of measures to put in place to safeguard our clients’ data. Here’s the best practice we take and the same practice that you should be taking too:

 

Accountability

Make sure that the methods you use to collect and administer payments are fully accountable, easy to use and read and that your accounting is transparent and secure. Ensure controls are in place that spell out how customers can access and manage their data.

 

Have clear data breach policies

Ensure that you seek professional advice to lead by example. Compiling regular and thorough risk assessments on stored data will ensure that you comply with the latest regulations. There are a number of examples to account for what happens when lost or stolen data is used for identity fraud and you do not want to be on the wrong side of the table when it comes to your customers (or the law for that matter!).

 

Financial service providers…

…are often using automatic profiling in determining their potential customers’ credit viability. You must ensure you know the rules around automatic profiling and that you comply with the legislation to the T.

 

Training and awareness

It’s crucial to ensure that everybody is on the same page in terms of data handling. That’s why staff training and awareness should be made a priority – make sure you schedule enough time for meaningful training for all of the departments you work with.

 

The importance of internal auditing and compliance monitoring

It’s also very important to perform these on a regular basis, regardless of the size of your business. Even more importantly, the financial sector has to ensure full transparency and accountability and these methods are crucial in achieving it.

 

At DFC, we offer a totally transparent revenue management service with clear pricing and no hidden extras. 

Our mission is to make our clients business easier and help 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.