Managing your Direct Debits

People like Direct Debits. They’re easy to setup and require little maintenance past the odd check-up. Despite this, they still fall under the perplexing finance umbrella which, for many, is a complex place to be. So here’s the low-down on bossing your direct debit payments.

Setting up a Direct Debit

In order to get started with Direct Debit payments, you will first need to fill out a Direct Debit Instruction with the company you’re wishing to pay. This can usually be done over the phone or via an online portal.

This will be sent forward to your bank or building society, which will authorise payments from your account to theirs. You’ll simply need your name and address, your sort code and account number and any additional information required by the company related to your purchase.

Direct Debit queries

Knowing who to speak to with Direct Debit matters really comes down to the nature of your inquiry. It’s more than likely that you will need to get in touch with the company in question, particularly if your concern relates to your membership/subscription or payments.

If your queries relate directly to the Direct Debit process, then get in touch with your bank or building society. In the event of any errors or miscarriages, you’re protected under the Direct Debit guarantee. You can read more about this here.

Payment changes

Many people choose to use Direct Debit due to its flexibility, unlike standing orders which only allow fixed amounts going out at set intervals. You’ll be notified of any changes to the amount, date or frequency of a payment within 10 working days of the payment.

Without advance notice, you are entitled to a refund under the rules of the Direct Debit Guarantee.

Direct Debit cancellations

You can cancel your Direct Debit at any time by simply getting in touch with your bank or building society, however, it is advisable that you notify this to the organisation you are paying to. If you wish to continue using them, then you will have to discuss alternative payment methods.

Ensure that you cancel your Direct Debit with a minimum of a day’s grace before the payment is due to come out as you may find the payment will still be made. Money shouldn’t be collected post-cancellation, so be sure to check your statement afterwards.

Direct Debit top tips:
  • Always ensure you have sufficient funds in your account to sustain your Direct Debit payments.
  • Stay on top of your outgoing payments so you can remain vigilant in case of errors.
  • Keep an eye out for Direct Debit offers. Direct Debit is a cheap collection method for companies so many will offer incentives for you choosing to pay this way.
  • A rewards account is a great way to get money back or rewards from banks when you pay your Direct Debits through them.
  • Direct Debits are a great choice for paying bills, insurance, mortgages, loans and subscriptions and memberships. Around 15,000 UK organisations offer this collection method.
Find out more about DFC’s trusted and transparent Direct Debit collection solutions. 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.

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