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We take our slogan ‘we do more’ very seriously. It’s true. We do more to provide seamless cashflow solutions professionally and securely.  We work hard to keep our clients in the loop every step of the way and deliver on our promises day in and day out. Our value is rooted in clear pricing and no hidden extras.
 

More compliance

Direct Debit is the securest money transfer service available. Even so, we take as many steps as we can to make client security our top priority.

We are Trading Standards and Bacs approved, and we deem it imperative that all transactions are carried out in a protected manner. Likewise, regular safety checks are undertaken by a third party to certify that security is continuously operating at the highest standards.
 

More credit control

It is imperative that we make our service accessible to customers – we follow customers up through phone calls, letters, SMS and emails. Customers can expect an average of nine points of contact before final collection, and we will work with them to ensure this is met.
We understand that it can be uncomfortable chasing customers for payments. We take the onus off you by managing your debt collection so you don’t have to. We’ve worked hard to remove the burden of unpaid payments by opening up a range of payment options for customers. They can choose to do so online, through our dedicated call centre of through our My Payments portal.
 

More customer service

We do more to provide as many payment avenues as possible. Our call centre hours have now been extended to Saturday, and our experts are busy taking thousands of requests a day. After all, we know that you simply don’t have time to pour into Direct Debit queries. Our flexible billing frequencies allow customers to schedule payments on a weekly, fortnightly, 4 weekly, monthly, quarterly or annual basis so you can be guaranteed steady cashflow throughout the year.

 

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

Like any other payment method, the Direct Debit Scheme offers its own complex maze of rules and regulations that businesses must adhere to.

Compiled by Bacs, the organisation responsible for the clearing and settlement of UK Direct Debit, the Direct Debit scheme rules act as a failsafe to ensure service providers remain fully compliant.

A breakdown of the rules can be found in the Service User’s Guide and Rules to the Direct Debit Scheme, however as a time-saver, we have condensed the key aspects below.

Becoming a service user

In order to join the scheme and become a Direct Debit service user, an organisation must first contact its bank in order to gain sponsorship. For a company to be considered for Direct Debit sponsorship, they must:

• Have a UK sterling bank account
• Complete and lodge an indemnity with their sponsor

The sponsor will take into account variables such as:

• An organisations contractual capacity
• Its financial standing
• The quality of its administrative control

Once granted, the sponsoring bank will issue the organisation with a Service User Number (SUN), which will serve as their unique ID.

Direct Debit Instructions

At this point, service users are free to think about taking Direct Debit payments. In the first instance, a Direct Debit Instruction must be raised. This authorises a service user to collect any amount of money at any time, as long as advanced notice has been given to the customer.

It is the responsibility of the service user to ensure that any recorded information is complete and accurate before lodging it to the payer’s bank. Any rejected Direct Debit Instructions will be sent back to the service user.

It is down to the service user to ensure that all payments are collected legally, without breaching consumer protection or other legislation. Likewise, any other monetary contract between the customer and the service user falls outside of the banks Direct Debit jurisdiction.

My Payments is DFC’s answer to defaulted Direct Debit issues.

Keeping your customers happy is front and foremost to retaining them. It’s stressful when payments are rejected, so making their lives easier at this hurdle is a sure-fire way to keep them on board.

The My Payments portal provides a quick and secure way for your customers to pay defaulted payments without any complications.
 

Monitoring payments

My Payments is integrated into DFC’s platform, as well as utilised by clients in-house. Many even provide customer access through their apps.

Members can keep track of payments and quickly rectify problems without creating extra work for those inside the business. The outcome is time saved on admin and an increase in customer experience.

46% of customers across DFC’s service choose to pay through My Payments due to its convenience and simplicity. As a result, DFC has been able to dramatically decrease call centre waiting times and place greater care on each individual.
 

A pain free process

Since using My Payments, DFC has seen over a 50% success rate in payments on members in stage one of the default process.

Payments can be taken on a number of platforms, including mobile, tablet and PC, meaning customers don’t have to set time aside to deal with the issue. This can be carried out easily whilst on the move.

Once a payment has defaulted, a link to My Payments will trigger through SMS links, email and direct URLs, making it easy for customers to locate and access.

Customers are merely required to input their postcode and reference number, which can be found on any communication from DFC. It really is that simple!

Considering the value Direct Debit can have to business, it’s a shock that more don’t seek to promote this method of payment where they can. Its winning simplicity and cost-effectiveness encouraged your company to go down this payment route, but what’s encouraging your customers?

Actually, there’s a great deal that they can benefit from by choosing to pay in this way. So if Direct Debit is something you offer, it’s something you should be shouting from the rooftops – and if not then what are you waiting for?

 

Direct Debit Guarantee

This is not just some fancy banker terminology. The Direct Debit Guarantee acts as a safety net to customers, ensuring any incorrect payments are returned back to their account. Direct Debit is actually the safest payment method in the UK. It’s also amongst the most trusted.

 

No late payments

Direct Debit collection and payments are automated. Outside of checking statements, there’s very little in the way of manual labour. Think – no late payments, no awkward chase ups and no need for customers to bury their heads in the sand. Everything is collected on agreed payment dates, and an improved credit rating just is the cherry on top of the already fruitful cake.

 

Incentives and discounts

Direct Debit is just as simple for companies to implement as it is for customers. So if businesses can get more people on board then it’s a win –win situation. As such, many will offer discounts and incentives – not only will customers get the benefits that come with this payment method; they’ll also get cheaper rates without losing you any money. You’ll also score loyalty points.

 

Affordability – payment over a period of time

It’s far easier to pay for something in instalments than it is in one lump sum. With Direct Debit, customers can spread the costs in a way that is far more convenient for them. Billing dates are less rigid and can be set up weekly, fortnightly, monthly, quarterly etc. in a way that best suits them and your business.

 

Set up ease online and offline

Nobody likes to dither where payments are involved. So it’s great that beyond setup and cancellation, all that’s left to do is keep check of outgoings. Even better – it’s paperless.

DFC’s online joining portal FastDD allows companies to stay open for business 24/7 – customers are ready to go at the click of a button. The ease with which FastDD integrates into to you company’s website and the inherent nature of setting up direct debits online means that you can provide a clear and immediate call to action to your potential customers and improve conversion rates on your services in the process.

 

Payments can just as easily be set up over the phone (or face-to-face if preferable) with DFC’s simple and secure Electronic File Transfer. The process is quick and incredibly simple, and our customer service team are on-hand six days a week to handle enquiries.

At Debit Finance, we cannot rate the benefits of Direct Debit highly enough. We built an entire business around it for that reason!

One of the greatest rewards associated with this payment model is the sheer cost savings it can have for your business. Find out more on how Direct Debit’s can save your business money:

 

Cost efficiency compared other payment methods

Direct Debit’s can quite literally save you pounds. 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.

 

Time on administration

Time is money. Any time spent focusing on payment management is time that can be spent elsewhere. Everything beyond setup (which can be completed quickly and conveniently using DFC’s online joining portal, FastDD) is automated. It requires little maintenance outside of payment tracking and monitoring.

 

Paperless payment storage is free

Direct Debit’s are as great for the environment as they are convenient. Every piece of Direct Debit documentation you receive needs a home. Thankfully, the majority of Direct Debits are paperless so there’s no need to fork out money for tangible filing and storage – good news for you and the planet.

 

Cash flow convenience

Late payments are a particular bugbear to all finance departments. Without knowing when payments are coming in, it’s very difficult to manage internal finances. By using Direct Debit, you can rest assured that specified amounts are coming in at specified times. Forward-thinking is crucial to business – luckily Direct Debit’s make it easier to plan ahead.

 

Cost spreading

Gyms and insurance companies are just some of the examples of businesses who offer monthly payment breakdowns, often on annual contracts. In setting up Direct Debit payments, the customer has agreed they are happy to relinquish this money to you, and your business is guaranteed income over that period.

 

Customer retention

Direct Debits can save money for your customers, so what better way to cement their loyalty? Flexible payment dates, cost spreading and the value it can have on their credit score all play a part in maintaining their trust, making them more inclined to stay with you than use a competitor.

At DFC, we go above and beyond to uphold fantastic customer service. We’ve even opened our call centre on a Saturday to ensure no request goes unheard. Happy customers mean a happy business. 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.

Most consider Direct Debit a useful approach to managing ongoing cash flow. But did you know that it is also an effective method of handling ad hoc payments?

Many companies choose this option when an instant transfer of money isn’t required – for example, businesses collecting lone invoices or charities accepting donations. In fact, making payments in this way provides the same benefits that come with using Direct Debit for regular outgoings:

 

Control

Direct Debits are controlled by the merchant, as opposed to the customer. Payment does not have to take place at the point a decision has been reached. Rather, funds can be transferred at an agreed later date without the hassle of invoicing or chasing customers.

 

Cost efficiency

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, cheques and cards, whilst saving time (and therefore money) on administration.

 

Security

Customers are protected under the Direct Debit guarantee, making Direct Debit the UK’s safest and most trusted payment model. When a payment error is made, banks and building societies will quickly rectify this with a full and immediate refund.

 

Customer satisfaction

The sheer simplicity of Direct Debit proves a big pulling factor for customers and businesses deciding on a payment model. If a customer already makes infrequent purchases to a merchant, the Direct Debit process is even easier.  A Direct Debit Instruction from the customer informs the bank of payment, after which the service provider will give the customer confirmation of the collection day and the amount.

 

Arguments exist for and against the unprecedented growth of the paperless era, but it’s difficult to dispute the ease this development has had on cumbersome administration practices.

The introduction of paperless Direct Debit has been of particular value to customers and service providers alike. The move away from tangible, paper-based transactions into a more efficient online process has had a multitude of advantages:

 

Less paperwork

Paperless transactions are a big time and money saver, thanks to the absence of manual processing. Companies focus less of their energy on admin whilst online storage facilities free up office space and overheads, improving filing ten-fold.

 

Increased automation

Transactions are completed in real-time, greatly boosting speed and accuracy. Form errors can be picked up on the spot, ensuring all signups are completed properly and eliminating the need to return incorrect paperwork. Overall, the process is far simpler.

 

Greater customer convenience

Online Direct Debit forms, like Debit Finance’s online portal FastDD, are open for business 24/7. This means potential users can access it at any point, even whilst they are on the go, and signup is instantaneous.  Beyond this, customers are saved the hassle of stamps, printing and postage.

 

Improved customer service

Paperless Direct Debits can be set up online or over the phone. Telephone, in particular, gives operators the opportunity to guide customers through the payment process and answer questions. Customers are coming to expect paperless mandates more and more these days, so to not offer this is to do a disservice to your business.

The line between standing orders and Direct Debit is often blurred.

Both payment instructions to a bank or building society, one (standing order) is permissible by the individual making the payment, and the other (Direct Debit) by the service provider.

In the past, standing orders have been favoured by many beneficiaries because it decreases their involvement in the setup process. However:

• Payment days and amounts are fixed, revised only by the individual making the payment
• Payment failures are more difficult to spot
• And time is quickly eaten up on administration.

A positive trend

A 2016 Bacs report found that Direct Debit usage grew by almost 5% in this year. It also emerged that 9/10 UK adults currently have at least one Direct Debit.

Arguably one of the biggest reasons for this continued popularity surge is the flexibility that comes with Direct Debits. Billing days and amounts are variable in line with the ebb and flow of a clientele’s business requirements. Payments are automatic, and changes can often be made without necessitating authorisation from a client.

Unlike a standing order, there is no reliance on a customer to ensure the payment process is setup. Direct Debits also allow companies to track and monitor payments far more easily, keeping tabs on exactly how much is coming and going at any time.

Beyond this, Direct Debits are protected under the Direct Debit Guarantee. Customers will receive an instant refund in the instance of an incorrect payment and companies will be notified when a payment has failed.

Taking a step forward

Debit Finance partner Think Fitness, an independent gym facility, experienced 80% growth in just three years after making the move away from a standing order payment model.

Using our online joining portal, FastDD, Think Fitness were able to automate the Direct Debit payment process saving them hours in paperwork and encouraging a greater customer base thanks to the ease of use. We were able to take the onus off them by managing their cash flow so that they could focus their attention elsewhere.

With our help, you can make big changes too. 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

If you want to pay a company or an organisation using Direct Debit Collection need to set up your Debit with them directly, and the process is simple. Whether you set your Debit up in writing, in person or over the phone, you’ll need to have a clear record of an agreed date for the Direct Debit payment to be made, as well as a frequency.

The good news is you’ll usually have the freedom to choose the dates your Debits leave your account to suit your lifestyle and finances. For example, many people choose to have their bill payments leave their accounts just after their paydays, so there’s less room for any problem covering the payment.

The easiest way to set up a new Debit is to fill in a Direct Debit Instruction, which you’ll need to get from the business you’ll be paying. Many companies will be able to let you complete this using an online direct debit collection on the company’s website to make things easier, or you can even do this step over the phone. Once the Instruction is completed, the company will forward it on to your bank or building society, and they’ll be authorised to collect the payments straight from your account.

Going forward, if you ever have a problem or think you may fail to cover a payment, it’s best to inform your bank in advance and see what they can do to help. If they wish to make any changes to the way your payments work they’ll need to give you formal notification up to ten working days in advance.

As soon as you enter into a Direct Debt, you’ll be covered by the Direct Debit Guarantee, and any payments taken in error will be refunded immediately by your bank or building society.

Because it’s important to understand the Direct Debit process, we’ve compiled some more commonly used terms and clear explanations of what they mean.

“Paperless Direct Debit”

A term you’ll see and hear more and more frequently is ‘paperless Direct Debit’, and this simply means a Direct Debit Instruction that’s arranged via a phone call of online, so there’s no paperwork or form filling involved.

“Due Date”

Next it’s ‘due date’. This term is used to refer to the date a collection is due to be made, so it means the date your funds will leave your account according to your Debit agreement. The next term is ‘counter-claim’, and this is a claim created by a service user in response to a customer’s indemnity claim.

“Direct Debit Indemnity Claim Advice” (DDICA)

Customers have the right to place an indemnity claim for a refund under the Direct Debit Guarantee, and if the service user disputes their claim then they’ll put in a counter claim. A counter claim must be placed within 14 days of the indemnity claim going through.

When an indemnity claim is raised by an individual, the service user will receive what’s known as a DDICA, or a ‘Direct Debit Indemnity Claim Advice’. This is a notification that one of their customers has put in a claim.

“Direct Debit Guarantee”

Finally, there’s the ‘Direct Debit Guarantee’. This guarantee applies to any Direct Debit collection, and it protects customers who make their payments via the scheme. One of the main ways in which the guarantee is beneficial is that in the event that a payment is ever taken in error, the customer has the right to expect the funds returned immediately by their bank or building society, and it’s their responsibility to pursue reimbursement. The Direct Debit Guarantee offers peace of mind to anyone who relies on the Debit scheme.