Direct Debit is one of the easiest ways to collect your customer’s payments. It gives your organisation the authority to collect your customer’s payments when you want and allows you to vary payment quantities accordingly.
It’s also the safest and amongst the most trusted of payment methods in the UK. Usage is even on the rise – statistics from Bacs show an increase by 4.9 percent over 2016 in the UK.
With this in mind, are you aware of the ways your customers are protected?
The safest method for payment collection
All businesses, banks and companies, including DFC, using Direct Debit are bound to the Direct Debit guarantee. This is essential compliance that ensures customer protection under the Direct Debit scheme. Below is just some of the primary ways customers are safeguarded under these regulations:
- Customers must be notified up to ten days in advance of any changes concerning the amount or the payment date.
- Customers will receive immediate refunds from your bank in the case of an error. This includes payments on a date other than the due date and withdrawals of a different amount than originally agreed/notified.
- Direct Debits can be cancelled at any time before the payment due.
- Your business is also protected in the event of a mistake – customers receiving an incorrect refund must pay this back in full.
Organisations that operate using the Direct Debit scheme must ensure they meet specific standards in order to be accepted by banks. DFC, for example, ensures the safe transferal of money by being Bacs compliant and Bacs bureau approved. Subject to regular inspections, it is frequently assessed to ensure that it meets all lawful protocol.
Transparent Direct Debit Management
With so much governance under the Direct Debit scheme, customers can rest safe in the knowledge that their money is protected. But this works both ways, and it’s imperative for businesses to regularly monitor the peaks and troughs of their Direct Debit cash flow.
Through DFC’s Data Retrieval Service, companies can easily maintain a transparent record of customer payments. Our 24-hour Data Retrieval system removes administrative headaches and ensures that all Direct Debits are accounted for. Find out more on how you can streamline your Direct Debit collection here.