Direct Debit Solutions - Typical Scenario Analysis
Outsourcing to an Approved Bureau or managing a BACS system in-house
If you're looking for ways of saving money in your business, it is worth considering the option to outsource your direct debit collection process, even if you have your own Service User Number (SUN).
The attraction of cost savings is usually countered by the worry of loss of business control, however this needn't be a concern with our solution. It has a fully transparent audit trail and accountability that still allows you to retain as much control as you see fit.
The solution will:
- Save you money
- Keep your data and your customers data highly secure
- Be BACS compliant at all times
The table below is a typical cost comparison analysis using conservative in-house costs. The figures are based on 15,000 customers and the minimum cost savings are £20,000 in Year 1 and over £6,000 for each subsequent year.
I'm interested in a bespoke quotation
For a more detailed typical scenario analysis to help you define the costs and benefits for your organisation, download the document below:
Case Study PDF
| In-House Solution - BACSTEL IP software supplier | Unit Cost (£) |
Units or Months |
Year 1 Cost (£) |
Year 2 Cost (£) |
| DD Software Core Package | |
|
|
|
| Bacstel-IP, 500 Payer database, 1 PC licence, | |
|
|
|
| 1 SUN, 2 x Smartcards and card readers | 3240 | 1 | 3240 | |
| Add 1 extra PC licence | 520 | 1 | 520 | |
| Add custom letter templates | 500 | 2 | 1000 | |
| Add Payer database (£4000 per extra 5000) | 4000 | 3 | 12000 | |
| Annual Support licence @ 20% | |
|
|
3252 |
| Product Installation | 1050 | 1 | 1050 | |
| Product Training | 1050 | 1 | 1050 | |
| Staff Wage Allocation | |
|
|
|
| Assume 1 high level staff and 1 admin level at 25% | |
|
|
|
| dedicated time allowance £40K annual | 10000 | 1 | 10000 | 10000 |
| BACS Staff Training | 250 | 2 | 500 | |
| BACS and Bank Charges | |
|
|
|
| Standard rates 8p per transaction & £5.00 per | 1250 | 12 | 15000 | 18000 |
| BACS submission (min 8 files per month) | |
|
|
|
| IT Systems and Infrastructure | |
|
|
|
| Server, firewall, configuration, access control | |
|
|
|
| Assume only minimum upgrade requirements | 2000 | 1 | 2000 | |
| System Support and Maintenance at £50 per month | 50 | 12 | 600 | 600 |
| DR & Contingency at £30 per month | 30 | 12 | 360 | 360 |
| Postage and Stationery | |
|
|
|
| All DD-related letters and miscellaneous correspondence | |
|
|
|
| assume 2 letters/year 15,000 x 75p + 25% customer change in Yr 2 | |
|
22500 | 28125 |
|
TOTAL In-House Solution Costs NB |
|
|
69820 |
60337 |
| Eazy Collect Bureau Solution |
Unit Cost (£) | Units or Months | Year 1 Cost (£) | Year 2 Cost (£) |
| DD Facility Setup Fee (Renewal £95) | 250 | 1 | 250 | 95 |
| Fixed Monthly Admin and Management Charge | 30 | 12 | 360 | 360 |
| New Customer Setup Charges (15000 x 50p + 25% change in Yr 2) | |
|
7500 | 1875 |
| Transaction Fees at 15p per customer per transaction | 2250 | 12 | 27000 | 33750 |
| Bank charges (same as in-house) | 1250 | 12 | 15000 | 18000 |
| |
|
|
|
|
| TOTAL Outsourced Solution Costs | |
|
50110 | 54080 |
