Blog

UK payment statistics released by Bacs in February showed that Direct Debits grew by a whopping 5% over 2016. This makes Direct Debit one of the most trusted and fastest growing payment solutions in the UK.

But despite this, misconceptions still remain about this method of payment. As such, we’ve highlighted some of the most coming myths surrounding Direct Debit.

Myth 1: Direct Debit is difficult to set up and requires a lot of paperwork

There was certainly a time when Direct Debit took longer to implement. The process was bound to manual sign-ins that required face-to-face meetings or communication by post and this often necessitated a lot of paperwork.

Today, Direct Debit is automated and paperless. Most banks or bureaus provide an easy and quick set up via the phone or internet. DFC’s FastDD offers a simple online solution that allows your customers to sign up quickly and simple, 24/7. Payments can’t be delayed, lost or forgotten and admin is minimal.

Myth 2: Direct Debit is inflexible

Unlike standing orders which are fixed, Direct Debit is highly flexible. Billing days and amounts are adjustable in line with customer needs, allowing businesses and consumers to operate more efficiently with each other.

Through DFC, billing can be scheduled on a weekly, fortnightly, 4 weekly, monthly, quarterly or annual basis, from Monday through to Friday. By giving your customers and clients this choice, you can cement their loyalty and ensure a continuous flow of cash throughout the year.

Myth 3: Direct Debit is unsafe

This is simply not true. Before a company can offer Direct Debit as a payment option it must go through a rigorous vetting process. All customers who choose to pay by Direct Debit are protected by the Direct Debit guarantee thereafter. This covers:

• Advance notice if collecting dates or amounts change
• An immediate money back guarantee in the event of an error
• The right to cancel your direct debit payments at any time

Myth 4: Only big companies can use Direct Debit

It’s not hard to understand why this myth exists. The vast majority of people began using Direct Debit to pay off their electricity or phone bills to the big industry players, making it hard to see an alternative existence that allows small to medium companies to use it too.

But Direct Debit is more about the cash flow of a business than its size. Late and missed payments remain a major issue for companies that take payments on a regular basis. Direct Debit helps them to collect the money when it suits them and the customer, whilst streamlining administration massively.

Myth 5: Direct Debit is expensive

You’ll find that it’s actually quite the opposite. 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.

It also requires little maintenance outside of payment tracking and monitoring, and all those extra hours can be ploughed back into the business – like deciding on marketing incentives to help get new customers signed up to your Direct Debit offer!

Remember the days you had to actually wait for things? Dial-up – there’s a fun example. Sometimes you’d have to wait weeks to get your new dining table or even months to pick up your new car.

In many ways, we can be thankful that those days are long gone. Today’s suppliers support consumers to purchase a product immediately. People literally forget how to wait, be it a loading web page or a lengthy Direct Debit sign-up process.

A growing social impatience

Take this study conducted by MoneySavingExpert in January. A group of people were asked if they would rather take £50 now or £100 in one year. A surprising 51% went with £50 upfront.

Further reports by BT Global Services revealed that 84% of customers favour companies that offer the immediate issue of new debit and credit cards.

Of course, it doesn’t take a year to set up a Direct Debit but that doesn’t disguise the fact that people simply don’t enjoy the time-consuming rigmarole that comes with form-filling and bank liaisons.

It’s far easier to sort it out in a paperless fashion and once your customers are signed up, they need not concern themselves with the organisation of continuing payments thereafter.

Satisfying instant gratification with Direct Debit

Take for instance our online joining portal, FastDD. Customers can sign up to a Direct Debit with your company 24/7. The process is as quick as it is simple and errors on entry are reduced through automatic bank verification.

Customers can also arrange Direct Debit payments just as easily over the phone through our dedicated call centre. Our qualified experts can walk them through the process swiftly and it takes just minutes to complete the process.

Instant gratification is an inescapable facet felt by today’s consumers. It’s your job to make sure these needs are met. Direct Debit makes it easier for your customers to purchase a product immediately.

You can take the hassle out of the payment process with DFC and ensure that your customers stay longer. Find out more by getting in touch on 01908 422026

Compared with other payment methods, Direct Debit comes out near the top in terms of versatility. Once signed up, an individual can be charged based on their usage rather than fixed payments.

Whilst this is a brilliant tool for organisations with sporadic customer spending, the administration of this can be arduous leading many to offer an inflexible transfer process regardless.

At Debit Finance, we do more to make the billing process as efficient as possible for you and your customers so you don’t have to.

 

More billing frequencies

Keeping your customers happy is paramount to maintaining their loyalty. When a customer is happy, you can be sure of a continuous flow of cash throughout the year. A wide range of billing frequencies will take you a good leap forward in ensuring this.

With Debit Finance at the helm, customer billing can be scheduled on a weekly, fortnightly, 4 weekly, monthly, quarterly and annual basis.

It’s also available daily, Monday through to Friday. Should there be any queries about the billing process, our call centre is open Monday through to Saturday. This takes the onus off your employees whose time is often deflected away from their primary role by such matters.

 

More methods of loading

From online payments to traditional paper payments and hosted API, we offer a number of collection options to best suit you and your customers.

Our most popular collection method, FastDD, provides customers with a quick and easy sign-up method that can be carried out online across a variety of platforms.

Accessible 24/7, FastDD acts as a continuous sales aid to increase your number of monthly Direct Debit sales and automatic bank transfer reduces errors on entry.

Electronic File Transfer is another hugely popular method that allows people to collect paperless Direct Debit payments either face to face or over the phone.

As simple as it is quick, bank account verification takes just seconds and our invaluable 24-hour online data retrieval service keeps you fully up to date with payments thereafter.

 

So there you have it. For more information on how DFC can streamline your business, get in touch now on 01908 422 000.

As a small business owner, success rests on your ability to be a king of all trades. You manage of all operational duties, and that includes your cashflow.

Streamlining the payment process as efficiently as possible is the key to removing some of that heavy burden from your chest. Thankfully, with Direct Debit you can do just that.

Controlling your business starts with controlling your bottom line. Through Direct Debit, you can reap the following benefits:

 

No more chasing                                                                                                               

It can be embarrassing to nag your clients over late payments, especially when a small-town mentality comes into play and negative word of mouth is a lingering threat.

Nevertheless, 85% of small and medium-sized businesses find themselves forced to wait beyond their invoice terms for a transaction of money. Through Direct Debit, payments will be automatic and can be adjusted in line with the ebb and flow of client needs.

 

It’s easier to plan ahead

Payments through Direct Debit are cheaper than cash, cheque and card. Quite simply you will be paying less money to work in a decelerated fashion – it’s a completely win-win situation!

Beyond this, incoming cashflow can be measured and tracked in advance, giving you foresight in tougher times.

 

Decrease laborious tasks

With so much on your plate, reducing any time on administration should be a welcome thing. The majority of Direct Debit’s are paperless, saving you in storage and giving a little something back to the environment in the process.

All that’s left to do beyond the sign up is to monitor payments and adjust the amount if necessary.

 

Customer convenience

So with that in mind, why waste your customer’s time muddling around with payment variations when their usage and amount is ever-changing? Direct Debit payments can be flexible, saving the faff of contacting customers and gaining permission each and every time.

Don’t worry – Direct Debit is the safest payment method in the UK and your customers are protected by the Direct Debit Guarantee.

 

If you think your business could benefit from the above, get in touch now on 01908 422026.

Direct Debit is a valuable tool used by businesses worldwide as a way of becoming more efficient, manageable and cost-effective. Convenient and time-saving, it eliminates administrative hassle from all operations.

Put simply, Direct Debits make running a business much easier.

 

Getting a better grip on your cashflow

Direct Debit provides you with foresight on incoming payments. Easy to track and monitor, you can use this information to reduce the risk of oversights and strategically budget for the future.

Knowing who is paying how much at what time spares you of chasing late payments or sending out reminders. You, as a business, remain in control of your cashflow all the time.

In fact, the customer only needs to approve payment collection from their account once. Further authorisations aren’t necessary, even with flexible payment amounts. This means less paperwork and an easier way to organise your bottom line.

 

The age of advancement

Direct Debit has never been faulted for its inability to move with the times. The entire process is largely handled in a paperless fashion, easing the lives of customers and staff.

Through online joining portals, like DFC’s own FastDD, people can sign up to the scheme online 24 hours a day, 7 days a week.

FastDD is embedded in your website and provides automatic bank verification, reducing errors and delays on entry. Subsequently, the number of contact resolution points is reduced dramatically.

A fantastic sales aid, portals like FastDD can increase your monthly sales cycle whilst reducing the time and cost implications that come with this.

 

Even better…

Why not go one step further and get DFC to manage your Direct Debits for you? We take the hassle out of streamlining your payment process. You can save time and money whilst staying in complete control of your payments.

It’s 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.

 

 

Direct Debit is the simplest way for fitness businesses to collect money off its members, especially as payments can be varied in line with membership downgrades and membership fee changes.

Beyond this, Direct Debit provides a fantastic opportunity for leisure facilities to broaden their marketing scope. Customer acquisition and retention is heightened simply by choosing this as your method of membership collection. Here’s why:

Everybody loves discounts

In terms of processing and time spent on administration, Direct Debit is the cheapest payment method available in the UK. It adds a substantial amount of money to your company’s bank account and it’s up to you to invest this money in the most efficient way.

A large number of gyms channel this into member discounts.  Special offers and incentives for people signing up by Direct Debit will make your gym even more attractive to prospects and fend off local competition. It’s also a great opportunity to shift members away from pay-as-you-go to annual memberships.

Paperless joining

Nobody enjoys paperwork. In fact, people avoid form filling full stop. That’s why online joining portals like DFC’s FastDD are so handy. 24/7 access gives people the opportunity to sign up quickly and at their convenience through your website.

The portal can be advertised on marketing collateral and provided as a hyperlink on online promotional material such as eflyers. FastDD can even be personalised to your brand. With online joining, hassle is completely removed from the equation, which is just what busy prospects want to hear.

Direct Debits sell themselves

Direct Debit is as simple and convenient for you as it is for your customers. Late payments are a thing of the past, people can spread costs much easier (ensuring a continuous source of income for your business) and everything past setup is automatic.

One of the safest and most convenient payment methods in the UK, Direct Debit takes away the financial burden of going to the gym so members can channel all their focus onto fitness.

Not in the leisure industry? DFC works across a range of sectors, helping streamline businesses of all sizes and types.

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:

1. Customers must be notified up to ten days in advance of any changes concerning the amount or the payment date.
2. 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.
3. Direct Debits can be cancelled at any time before the payment due.
4. 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.

In an age of rapid technological growth and accelerated customer acquisition, seamless business operations are paramount. At DFC, we do all we can to ensure that the journey from customer attainment to billing is a smooth one by integrating with your current CRM.

 

Cohesive CRM integration

Direct Debit CRM integration ensures a joined up approach to customer management and administration.

By embedding cash collection processes into your CRM software as you can, the inner workings of your business will run more efficiently and you can almost guarantee a higher overall ROI as a result. Rather than waste time plugging numbers into separate data systems, cash flow data capture can be automatic.

Direct Debit sign ups and cancellations can easily be tracked and measured in line with KPIs. Similarly, all information is much more easily accessible and can be organised in a fashion that best suits your business functionality.

 

Simple and steadfast setup

We’re able to integrate cash flow data and reports into all leading CRM platforms. If your current system isn’t included in this, we’re willing to expand to include this. Setup is quick and simple, without detracting from your daily operational use.

DFC partner, Intermedia Brand Marketing, has had a positive experience with the speed of setup and the accuracy of incoming payment data. They said:

“DFC is able to deliver a reporting suite that enables us to stay abreast of the status of payments, easily manage new orders and alterations to details internally on behalf of our clients – and critically ensure that the integration with our customer relation management tools is simple and effective.

“The initial set-up of the relationship, along with the reporting suite and online access was seamless, with the functionality of the back-end system critical to ensure visibility, accountability and most importantly accuracy of the collection process.”

 

For more information on how DFC can streamline your business, get in touch now on 01908 422 000.

The SEPA scheme, or the Single Euro Payments Area, is an integration initiative set up to improve cross-border and domestic electronic payment efficiency across 34 European countries.

Prior to this, these countries had their own payment practices. The transferal of money was a fragmented and often complicated process. Transaction costs were high, delays and loss were common, and customer service differed from one country to the next. SEPA was set up to create one cross-border blanket system in a bid to boost speed and security.

How does SEPA work?

Since becoming operational in 2009, the SEPA Direct Debit payment process has encouraged the use of simple and secure overseas payments. This is particularly the case in countries such as Germany, France and Spain where Direct Debit is a very popular and established method of payment. Banks have yet to adopt SEPA Direct Debit in the UK.

The SEPA Direct Debit process is not too dissimilar to the one we know and practise for domestic payments – however, payments are only allowed to be conducted in Euros. Mandates from customers are used to authorise payments, and all transactions are communicated between banks without the involvement of card systems. The primary difference is that all payments are conducted in Euros.

Within the SEPA Direct Debit scheme, there are two branches:

• The Core scheme:

The SEPA Direct Debit Core has been set up with all payers and payees in mind, from private individuals to small, medium and micro enterprise businesses. This scheme is mandatory in all SEPA banks.

• The B2B scheme:

The intended usage of this scheme is solely for transactions between businesses. Unlike Core, this scheme is optional and therefore not offered by all banks. There is also no right to a refund after the Direct Debit is processed. However, it is down to the payer’s bank to ensure collection is authorised – as is not the case with the Core scheme.

The advantages of SEPA

• The ability to determine the exact date of collection
• Payment can be completed within a predetermined time cycle resulting in reliable cash flow
• There is a straightforward reconciliation of payments received
• It lets you automate exception handling (refunds, returns, rejects)
• It’s a simple and secure means of paying bills throughout the Single Euro Payments Area
• It provides an easy reconciliation of debits on account statements
• And finally, payments are faster so payers avoid dealing with the consequences of late payments.

 

For more information on SEPA Direct Debits, you can visit the European Payment Council’s website.