How To Change A Direct Debit Collection Date

In truth, many customers may not be completely crystal clear about the Direct Debit process, including how to change a Direct Debit collection date. Since Direct Debits are typically set up once by customers using a Direct Debit mandate form, they may not be aware of the finer details of Direct Debit arrangements. 

Simplicity of use and easy set up are two of the main reasons why customers prefer to make regular transactions by Direct Debit. Official figures show that Direct Debit payments are on the rise, with a 3% increase in payment volumes compared to last year. 

Helping customers understand the organisation and management of a Direct Debit solution could increase its popularity even further, including information around how to change a Direct Debit collection date. This is because system transparency makes it easier for users to trust the process. 

Contents

• What does Direct Debit collection involve?
• How to change a Direct Debit collection date.
• Seamless Direct Debit management with Interbacs. 

What does Direct Debit collection involve?

The essential details that make up Direct Debit organisation are generally standardised across all companies that implement this transaction method. In terms of evolution, most Direct Debits follow 5 similar procedures:

• Customer instruction

If customers are interested in a product or service, the relevant business may ask them to pay by Direct Debit. Once a customer has agreed, they should be issued with a Direct Debit mandate form, which will contain the necessary information required to set up a Direct Debit, including bank details, customer name and address. 

• Notice of collection

The mandate form is sent to the company’s bank to set up the Direct Debit and to make the customer’s bank aware of the upcoming transaction. A Direct Debit usually takes three working days to complete. 

On day one, the business’s bank tells Bacs about the new Direct Debit. On day two, the bank and Bacs process this request. On day three, organisation is completed and the payment can be made. 

• Direct Debit organisation

Understanding how to collect Direct Debits is key to the smooth running of a Direct Debit service. Many businesses discover that the time and workload in Direct Debit organisation is substantial, so they partner with a Direct Debit management service, such as Interbacs, who operate the whole service efficiently. 

Direct Debit organisation has to be flexible as transactions can change, be amended or cancelled by the customer at any time. 

• Transaction approval

Once a Direct Debit request has been approved, the company should make its customer aware of the payment amount and date the payment will be taken from their account ahead of time, so they have clarity around transactions leaving their account. 

• Payment collection

The Direct Debit payment will be taken from the customer’s account on the date specified in the customer agreement and for the amount that the customer has approved. 

Can you collect Direct Debits on weekends? If the date of a Direct Debit payment falls on a weekend or bank holiday, then the payment will typically be taken in the next few business days following this date. 

How to change a Direct Debit collection date

If you or your customers need to know how to change a Direct Debit collection date, then it’s helpful to gain clarity about how to make date or amount amendments. 

Most companies, or Direct Debit management service providers, will have a clear set of rules that explain how Direct Debits work and what to do if a customer needs to make a change. 

Sharing this information with customers is key to a greater understanding of the whole process, reducing customer confusion and minimising any issues that could occur. For example, customers should know that it takes a set amount of time for a change to a Direct Debit to be approved which can help manage expectations. 

If a customer wants to change the collection date for a Direct Debit, then they can contact you or your Direct Debit management service and let you know the new date of collection. This should occur by 4pm three working days before a change needs to be made. 

Seamless Direct Debit management with Interbacs

When you partner with Interbacs as your Direct Debit management service provider, there are multiple benefits for you and your customers. If you want to know more about how to collect Direct Debits, we can help you understand the whole process. 

Having an integrated and efficient payment collection process helps create a smoother customer experience, increases the consistency of your finances and helps you attract more customers based on your brand’s reputation. Plus, you can enjoy the freedom of an automated system that reduces error and boosts productivity. 

With a proven track record in successful Direct Debit management for all types and sizes of businesses and with a compelling industry reputation, Interbacs are well positioned to support all of your business account needs.

Ready to make the switch? Contact Interbacs today for a personalised consultation and discover how we can optimise your direct debit processes.