What is Direct Debit?
A Direct Debit is an instruction from a customer to their bank or building society authorising a organisation to collect varying amounts from their account, as long as the customer has been given advance notice of the collection amounts and dates.
Direct Debit is the preferred payment method for well over half of the UK bill paying population because it has so many advantages. It can make newsagents payment collection more efficient, manageable and cost effective which is why UK businesses of all sizes choose it as the preferred payment method for collecting regular payments from both individuals and businesses.
Benefits
- Its cheaper than cheques and safer than cash
- You control the date of receipt into your account
- You get cleared funds in your account on a known date
- You can collect variable amounts on regular or irregular dates
- It can eliminate time consuming reconciliation - only errors and non payments will be notified to you so you carry out reconciliation by exception
Your Customers` Rights
As a collector of Direct Debits from other businesses and the general public, the Direct Debit Guarantee plays a vital role in giving your customers complete reassurance knowing they are protected by a number of safeguards.
Direct Debit is the only payment method with a money back guarantee:
The Direct Debit Guarantee - This Guarantee is offered by all banks and building societies that accept instructions to pay Direct Debits.
- If there are any changes to the amount, date or frequency of your Direct Debit (insert your organisation name)will notify you (insert number of) working days in advance of your account being debited or as otherwise agreed. If you request (insert your organisation name) to collect a payment, confirmation of the amount and date will be given to you at the time of the request.
- If an error is made in the payment of your Direct Debit, by (insert your organisation name) or your bank or building society, you are entitled to a full and immediate refund of the amount paid from your bank or building society.
- If you receive a refund you are not entitled to, you must pay it back when (insert your organisation name) asks you to
- You can cancel a Direct Debit at any time by simply contacting your bank or building society. Written confirmation may be required. Please also notify us.
