What are Direct Debit Managed Services?

Direct Debit Managed Services allow you to collect payments through the Direct Debit system, even if you lack expertise or you think your business is too small. They also provide Direct Debit collections for your organisation if you don’t have a SUN (Bacs Service User Number). But why might you need this service?

Businesses today are dealing with multiple headwinds that create complexity and organisational challenges. Controlling financial streams and delivering on key objectives are vital to an enterprise's ability to consolidate and grow.

The British Chamber of Commerce has published its Quarterly Economic Survey for Q3 of 2024. The survey reports that 56% of British businesses expect their turnover to grow over the next 12 months. 

As a result, it seems likely that organisations will need a reliable and robust payment collection system in place so that customers can easily pay for goods and services while businesses develop more certainty over their revenue sources. 

Direct Debit payments systems are now established as a trustworthy transaction solution that delivers for both customers and businesses. The latest statistics show that Direct Debit payments are consistently high for business rates (44.6%), commercial billing (37.8%), and general B2B collections (31.1%). 

Working with a Direct Debit managed services provider provides enterprises with valuable benefits, including access to intuitive Direct Debit management software that simplifies payment processing and streamlines administration. 

Contents

• What are Direct Debit managed services?
• Does your business need Direct Debit managed services?
• Flourish with Direct Debit managed services from Interbacs. 
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What are Direct Debit managed services?

When you set up a system to collect payments from your customers, there are processes that make this more efficient and easy to use. If an organisation doesn’t have a clear system for payment collection and documentation, then customers may be confused and businesses could fail to meet regulatory requirements.

Offering Direct Debit services for customers can make their decisions to choose your goods and services much more defined and simple. If they have a convenient way to pay that doesn’t require repetitive task completion on their part, the chances are those customers will stay invested in your brand. 

The several benefits of Direct Debit management services remove a significant amount of administrative burden from your business. A Direct Debit managed service provides Direct Debit collections for an organisation if they don’t have a SUN (Bacs Service User Number).

An experienced and effective Direct Debit managed services provider will take your customer data and set up a comprehensive Direct Debit collection system. This will include all of the administration related to customers and required for Bacs so that your payments are collected on time and meet all the appropriate regulatory standards.

Does your business need Direct Debit managed services?

Anything that helps business run more smoothly, allows you to focus on your priorities, and delivers concrete revenue streams seems to be instrumental in our current challenging business environment. 

There are a number of key benefits that Direct Debit managed services provide for businesses, including: 

• Rapid automation 

Manually processing payments can be extremely time-consuming and involve a lot of paperwork. Bank transfers and card payments require bank account  monitoring to ensure that payments have been received from customers. Cards can expire or be cancelled, creating even more administrative overload. 

Did you know that under the Current Account Switch Service (CASS), if your customer changes bank account, they can ask for their direct debits to be automatically transferred? This means you don't have to do anything and collections will continue without any extra work on your part. 

With Direct Debits, your service provider sets up the customer and the payment comes out of their account automatically without any additional arrangements. Your Direct Debit managed service will also check all of the Bacs reports to ensure that any issues with payments are ironed out. 

• Flexible convenience

The beauty of a Direct Debit service is that agility is built in. Direct Debit payments can be collected for one-off payments, regular payments, or intermittent transactions. If customers agree to a payment amount and the dates for collection, then Direct Debits can be transacted in a flexible and convenient manner. 

Customers can cancel a Direct Debit when they no longer need goods or services by contacting their bank. If your business needs to amend any detail of a Direct Debit, then letting the customer know in advance means that payments are approved and agreed. 

Under the other common recurring payment process, a Standing Order, the customer has to tell their bank to change the amount. A major advantage of Direct Debits is that the recipient can change the amount as long as they let the customer know in advance so they can prepare for the payment to leave their account. 

• Easy integration

It’s likely that you already have a number of technologies you already use in your business, such as accounting software. The great thing about Direct Debit services is that they comfortably blend with your existing tools, particularly if you partner with a Direct Debit managed services provider who can facilitate this integration for you. 

Combined with the automation element of Direct Debit services, this ability to integrate helps you reduce the time spent on financial administration and increase the accuracy of your payment data. 

Flourish with Direct Debit managed services from Interbacs

Security is paramount for your business and customers. At Interbacs, we also put your payment and information security first. Interbacs has more than 30 years of combined industry experience in Bacs and business payment software delivery, but we don’t sit still. 

Every element of your Direct Debit managed service is tailored to your operational needs, making sure your payments are collected on time and that regulatory compliance is fully met. 

Your dedicated Direct Debit service team is always on hand to offer support and expert advice, proactively providing solutions and resolving any issues that may arise. If you want to know more about exactly what are Direct Debit managed services, we can help. 

With a proven track record in successful Direct Debit management for UK businesses and with a renowned industry reputation, Interbacs are expertly 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.