Payment Processing Blog

Paperless Direct Debits were introduced in 1998 to remove the paper instruction from the sign-up process enabling improved sales and payment processes for many businesses.

Paperless Direct Debit enables service users to capture payers’ bank details over the telephone, on-line or any other means approved by your sponsor bank and can be used alongside the traditional paper based signup.

The Paperless Direct Debit process is:

1. The bank details are entered into the Direct Debit Management Software (e.g. Finance Application, Customer Management Software)
2. A confirmation letter/email is sent to the payer, advising of the new Direct Debit set-up.
3. The advance notice Letter/Email is sent to the payer, advising of the collection schedule. The advance notice can be combined with the confirmation letter.
4. The Paperless Direct Debit Instruction is lodged at the payer’s bank using AUDDIS.

Due to the additional liability and risk associated with it, Paperless Direct Debit isn’t appropriate for all types of business and client bases. Paperless Direct Debit cannot be used if:

• Two signatures are required
• A paper Direct Debit Instruction is requested by the payer
• Any Paperless Direct Debit Script question is not answered satisfactorily

The Paperless Direct Debit process will require you to make changes to your procedures and systems but will be well worth the effort.

Eazy Collect Services Ltd. is a BACS Approved Bureau
Direct Debit Collections

In December 2010, Memberwise (a best practice advice body to the sector) assembled experts from the UK payment processing industry to present to Member Organisations and Trade Associations on the benefits of adopting online paperless direct debits.

Over 65 companies attended the event and learned how to cut costs associated with payment administration and how to streamline and improve membership collection rates through the implementation of paperless direct debit solutions. Key industry suppliers made presentations on the pros & cons of whether to outsource to a BACS Approved Bureau or purchase in-house software. Direct debit training specialists were on hand to make sense of direct debit jargon and paperless BACS compliance. Other MemberWise events dedicated to everything direct debit are planned for 2011.

Feedback from the event was extremely positive:

'A really helpful seminar hitting just the right level for the beginner. It would be difficult to suggest what else could have been covered.'

Memberwise is free to join and if you visit http://memberwise.org/DirectDebit.aspx you'll be able to find out more about paperless direct debit processing and get 50% discount off the Direct Debit facility set up fee using the Memberwise Discount Offer.

If you'd like further information on direct debits for membership organisations, please contact Richard Gott at Memberwise on 020 7223 2450 or join the The MemberWise Network LinkedIn Group

Customers are increasingly comfortable paying for products and services online and in many cases even expect it nowadays.

Offering a payment option via your site can make a big difference to your cash flow as customers are often ready to buy at that moment and not later.

Whilst online card payments are now commonplace, it's now just as easy to implement payment processing using direct debits.  This offers payment options for companies that take regular payments from customers whether fixed or variable amounts.

The direct debit details are taken in the same secure web environment that's used for handling card payments, so your customers details are kept safe.

Your customer will then get an advance notice letter (or email) to inform them of the payment details in the same way as when paying a utility bill for example, using direct debit.

And that's it.  The payments can be taken within your website or using a link to a 3rd party site for processing.  Either way, it will be completely secure.

Be sure to use a BACS Approved direct debit bureau.