A who’s who of Direct Debit

Much like with any banking or payment process, the Direct Debit cycle involves a number of key players who work tirelessly behind the scenes to ensure Direct Debit mandates move forward without a hitch.

Thanks to these guys, the public can submit a Direct Debit quickly and easily from the comfort of their couch without any hassle. Businesses can also take a break from lengthy administration duties and maintain a better grasp on their finances. Who exactly are we talking about?

The organisation that the customer is paying to

If a customer is happy to utilise the services of an organisation, they might set up a Direct Debit with them. This can either be for ongoing or one-off payments and can be set up over the phone, the internet or via a Direct Debit Instruction form. This information will then be passed on from the organisation to the bank, giving the bank permission to collect money from the customer account.

 

The bank/building society

Banks and building societies operate as the middleman between the organisation and customer. They are responsible for responding to all requests, be it sending money to and from accounts, handling default payments and refunding money taken in error. The Direct Debit process operates over a three-day window from the submission of a payment until the final account entry stage.

 

Bacs Payment Schemes Limited

Bacs is the organisation responsible for the efficient operation of the Direct Debit scheme. They write the rulebook on what is and isn’t acceptable and ensure that the scheme upholds the highest industry standards. They don’t have a direct relationship with customers. Instead, they remain in the background overseeing the process and ensuring it remains airtight for consumers and businesses alike.

 

Financial Ombudsmen

This is the independent service set up by Parliament for settling financial disputes and maladministration between consumers and businesses. They will make circumstantial decisions in each case based on what is fair and reasonable.  They must take into account relevant laws, codes of practice and industry guidelines and standards.

 

Direct Debit bureau

Direct Debit bureaus, like DFC, are the experts in managing all aspects of the Direct Debit scheme from setup through to collection. This takes the onus of busy organisations which don’t have the time or knowledge to manage their collections themselves. Direct Debit bureaus improve cash flow and collection rates and can even offer advice and guidance on the best ways to get new and existing customers on board.

 

Get in touch with DFC today. 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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