Are you currently collecting payments via Direct Debit for your business? No? Well, why not? In...
Direct Debits and the pandemic
Direct Debits' popularity has soared in recent years. Previously, Direct Debits were predominantly used to pay bills such as mortgage or rent, gas and electricity. Nowadays, Direct Debits are used for a plethora of reasons: Streaming services, mobile phone bills, broadband bundles, gaming subscriptions. There are also many payment plan schemes, which allow big purchases to be broken down into smaller regular Direct Debits.
In 2020, Direct Debits become a far more dominant payment method due to the pandemic. People don’t want to leave their house, and having the option to pay for an item and have it delivered was more important than ever before. In fact, PayUK saw the biggest jump in their success between 2019 and 2020.
This change can be seen in a range of professions, from large businesses having to change their models to achieve successful subscription services, to window washers and milkmen using Direct Debits to ensure their family remains safe. We have all had to change and adapt during this turbulent period, therefore it makes sense that businesses are looking to find a way to secure their cash-flow and safety.
In fact, .Gov have released a wonderful document stating the importance of not taking physical payments, instead opting for Direct Payments. This document was developed by the Department of Health and Social Care, to ensure the safety of the UK’s vulnerable public.
For SME’s this has become an increasingly important way to ensure the businesses safety and longevity, as it ensures that businesses can continue to collect payments in a way that is non-intrusive, yet reliable.
Our services have become more necessary during the pandemic, as businesses need us to ensure that their incoming payments are reliable. Furthermore, our software solutions mean that a single individual can maintain control of their cashflow, where previously a hired team would be needed.
Using Direct Debits as a solution to make sure that your service can carry on functioning is the simplest way to make sure you stay afloat. One of the more common problems faced by small businesses is the failure of recurring payments. It’s estimated that roughly 5-10% of all recurring payments fail every month. With us, we can alleviate most of the issues surrounding recurring payments failing. Our dedicated team will work on your behalf to ensure your payments run smooth.
Direct Debit improves customer retention
Direct Debit payments use a customer’s bank details. These rarely change or expire. This drastically reduces the chances of recurring payments being cancelled and creates a better overall experience for members.
Interbacs’ Direct Debit Management Software is available in three tiered packages, allowing membership organisations to choose the payment solution that best suits them. Moreover, we offer a Direct Debit web service where customers can integrate their data, reduce the opportunity for errors, allowing membership organisations to provide a consistently lauded payment service. When using our software, you will be assigned a dedicated project manager who will assist with any problems or questions throughout the set-up process. Our team will happily go through how the Direct Debit system works and how your business can use our software to its full capabilities.
Improving your customer retention is increasingly important in regards to ensuring your business can continue to survive within a rocky and changeable economy. Our Pandemic has proved that supply and demand can change rapidly on all fronts.
What are the benefits of using Direct Debit?
If used correctly, the Direct Debit system can ensure a business can secure a cash flow from its customers. Through creating a policy of regular payments, customers will remain loyal to a business due to their reliability. That is if they ensure their service is given after they have paid of course.
The Direct Debit guarantee also gives a layer of insurance to the customer, knowing that they are protected really helps in initially drawing in and creating a customer base. The Direct Debit Guarantee is in place for the rare occurrence that there is an error in the collection of the payment, for instance if the frequency or amount is incorrect.
The customer can cancel a Direct Debit at any time, through the business or their banks. Allowing them total control of their policy. Furthermore, if there is to be a change of the amount collected, the customer must be notified.
In upholding a successful business within a Pandemic, keeping up to date and imaginative with process automation allows room for growth elsewhere.