Our guide to automating Direct Debits

Managing payments and Direct Debits, as an organisation, can take up a large amount of time. Managing the administration, documentation and the sheer volume of numbers with the workload is a huge task. However, automating Direct Debits and using Direct Debit management services can help streamline the process. Continue reading to find out how automating Direct Debits, and Interbacs, can help you.

Automating Direct Debits saves time and resources

If you sat down and analysed how long it takes you, per month, to go through and manage your Direct Debit payments system, how long would you estimate it would take? Many companies underestimate the amount of time it takes to complete this process.

Managing the sheer volume of Direct Debits within your company can be an extremely time-consuming task, using up plenty of resources and time. Manually sorting Direct Debits from every customer, and chasing any missed and failed payments can be a lot of work every month.

By automating that process, you could not only save an incredible amount of time, but money too. Businesses that change to automating Direct Debits benefit greatly.

Benefits of automating Direct Debits

• Resources and time saved, leading to an increase in productivity
• Increased profitability as operational costs are reduced
• Streamlined control over payments
• Failed or non-payments are automatically handled and can be reported on
• Only failed or non-payments are returned
• Fewer manual entry errors

There are great benefits for a company that automates its Direct Debits. One of the key reasons why a company should do it is that the time, money and resources it saves can lead to an increase in productivity, with attention and efforts better utilised elsewhere within the business.

Better for customers

Offering your customers a streamlined Direct Debit system would make life easier for them, as well as for you. Regular collections of payment with no effort removes any stress for them to try and remember to sort payment.

The ease of using an automated Direct Debit system leads to a high retention rate in customers too, because there’s no reason for them to become frustrated with constantly having to get in touch with your company, or vice versa.

Manual vs automated Direct Debits

Manually controlled Direct Debits require a member of staff, or a team, to process all financial transactions by hand, one by one. Some may even be required to contact customers to process payments, while others would have to reach out to investigate missed or failed payments.

Not only does this take an incredible amount of time, but it opens the door to manual errors, from processing payments to entering the incorrect information into a financial system.

In contrast, an automated Direct Debits system takes complete control of seeking payment from customers, working alongside banks to charge the customer and create streamlined payments back to the company.

When payments are missed or failed, an automated message can be sent out to the customer informing them of the incident and requesting payment. An automated system also inputs all of the data correctly and quickly. If a customer needed to change their details - or did so through their banking app - the updated information would automatically reach the company system, rather than the customer needing to make contact to inform the company of the amendments.

For a large corporation with hundreds - and possibly thousands - of Direct Debits to process on a monthly basis, streamlining this task with an automated system is the best way to handle financials and create an efficient working model.

Direct Debit management services at Interbacs

Direct Debit is the preferred payment method for most businesses that collect regular subscriptions or fees. It provides a great deal of advantages, including alleviating processing stresses for your team. This allows your business to focus on growth, rather than manual data processing. Interbacs’ Direct Debit management services greatly improve your business’ cash flow.

Improving your collection process can improve the customer journey, assisting you to attract new customers and protect your brand. The ability to provide hassle-free payment plans for your customers will give you a competitive edge over your rivals. Furthermore, our paperless Direct Debit solutions ensure your company is as carbon neutral as possible.

Interbacs was established by Bacs software developing experts with more than 30 years of experience in Bacs payment services, and business payment software delivery. Over the years, we have developed a well-rounded team of developers, project managers and banking experts to provide the ultimate support for all your Bacs payments processing needs.

If you would like any more information on automating Direct Debits, contact us now.