If your business isn’t already using Direct Debit services to collect payments, you may be...
Businesses in the UK that need to collect payments from their customers often look to secure the safest and most robust manner possible. The latest statistics reveal an interesting picture when it comes to online payment collection, as the second most common online payment type in the UK in June 2024 was Direct Debit.
The data reveals that 57% of payments online were made by Direct Debit in June, confirming the fact that both organisations and consumers feel confident when using Direct Debit for transactions. This is because Direct Debits are widely seen as trustworthy, easy to use and simple to set up or amend as required.
Learning how to collect Direct Debits from customers can help businesses create more consistent financial streams and evolve their payment organisation.
Contents
- What is a Direct Debit payment?
- Is Direct Debit safe?
- How to collect Direct Debits from customers.
- Secure Direct Debit collection with Interbacs.
What is a Direct Debit payment?
A Direct Debit, also known as a Bacs Direct Debit, is a financial transaction which is organised between a business and a customer. This transaction is set up so that the customer can consent to an organisation taking a previously agreed payment amount from their bank account.
In order for this transaction to take place, the customer must complete a Direct Debit mandate form so that the payment can be approved once customer information has been validated. A Direct Debit mandate form is also referred to as a Direct Debit instruction form. Customers can arrange this over the phone, online or in writing.
Once the customer supplies the Direct Debit mandate form to the relevant organisation, this business then sends the instruction to the customer’s bank or building society so that all stakeholders are fully informed and aware of the payment, when it will start and how much the payment will be. Understanding how to collect Direct Debits is key to this process.
Is Direct Debit safe?
Some customers may worry about the security of sharing their data online or over the phone and are concerned that any type of payment process, including Direct Debit, might not be entirely safe.
In light of these concerns, it helps both businesses and individuals to know that Direct Debits are covered by the Direct Debit guarantee. This guarantee gives customers reassurance as every organisation using Direct Debit payment systems is vetted by a bank before they are allowed to collect customers’ money.
In addition, the transparency around how to collect Direct Debits for businesses helps the entire process to operate more smoothly, which encourages customers to trust the safety of the whole system.
How to collect Direct Debits from customers
Fortunately, working out how to collect Direct Debits from customers is a relatively easy process for organisations to follow. Essentially, there are two different ways in which to collect payments.
How to collect Direct Debits with a SUN
A SUN (Service User Number) can be obtained from your sponsoring bank. A SUN enables you to start collecting Direct Debit payments from customers. Many businesses find that, although Direct Debit payments are easy for customers to understand and use, the administrative processes can be lengthy and take up valuable time within an organisation.
If your business wants to know how to collect Direct Debits but doesn’t have the time or employee capacity to organise these transactions, then a Bacs Approved Bureau, like Interbacs, can manage them for you.
Interbacs Bacs Approved Bureau can reduce your internal processing, saving you time and money. The advantage of using our service is that payments are cleared directly into your bank account.
Our Bacs Bureau Service makes it much easier for businesses to manage payments efficiently. You’ll no longer need a large payment processing team as we can handle all of the stresses for you.
How to collect Direct Debits without a SUN
For many businesses, particularly SMEs or those that are just starting out, it may be challenging to gain a SUN from a bank or sponsoring organisation. It is helpful to know that a Direct Debit Facilities Management Service enables businesses without a SUN to discover how to collect Direct Debits and can set up the system for approved businesses.
In fact, the Interbacs Direct Debit Facilities Management Service completes all of the administration and monitoring processes for you, enabling your business to benefit from the support of a professionally qualified Bacs team.
You gain access to the benefits of Direct Debits, including your business name appearing on customer statements, without the administrative and financial burden of managing Bacs payments in-house.
Secure Direct Debit collection with Interbacs
Reassuring, robust and reliable, our Direct Debit services empower businesses of all types and sizes to collect Direct Debit payments and create a consistent financial flow without the need to complete all of the paperwork on a regular basis.
Boosting customer trust and enhancing your brand reputation, our Direct Debit services are ideal to help your business grow and scale at the pace that’s right for you and your customers.
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.
