Direct Debits for Venues & Attractions
About Movimo & You
There are challenges facing Venues & Attractions when deciding which payment methods to offer. Movimo understands these issues. With our experience supporting organisations operating in this space, we are able to provide tailored support and assistance. Whether that is Accredited training, bespoke project support or Bacs processing services, we can help. Contact us today!
Reasons why Venues & Attractions choose Direct Debit
- Increase Recruitment – An easy sign-up method e.g. online or via telephone can encourage supporters to sign-up
- Save Time – A bulk payment method means collections can be easy and quick to process
- Cost effective – Direct Debit is often the cheapest way to collect income
- Reduce Failures – Lower failure rates vs cards with useful feedback via Bacs report
- Improve retention – Automatic renewals can help retain members for longer
- Flexible – Price changes and additional charges can be easily managed
FAQs: Direct Debit for Venues & Attractions
How can we offer direct debit as a payment option to our customers? →
There are lots of options but the best starting point is always your own bank. If your organisation has been around for a few years and is credit worthy, then the bank should be able to sponsor you. Here is a list of Bacs Participants, i.e. all the UK banks that can sponsor you to collect Direct Debits. Even if your bank is not on this list, it may be worth speaking to them as they will often partner with a scheme member who can help you.
How long does a Bacs payment take? →
All Bacs transactions operate on the Bacs 3-day cycle. This is true whether you are lodging an instruction, making a payment via Bacs Direct Credit or collecting a Direct Debit. It works as follows:
Day 1. Input Day. The file is transmitted electronically to Bacs.
Day 2. Processing Day. Accepted data is processed by Bacs.
Day 3. Entry Day. If valid, the transaction occurs i.e. Instructions are lodged / payments made.
You can read more about the Bacs cycle in our blog.
Do Bacs payments clear on weekends? →
No. Bacs transactions can only be processed on business days (Monday to Friday). Bank holidays and weekends are non-processing days. Transactions can be sent to Bacs between 07.00 a.m. and 22.30 p.m.
What is the Direct Debit mandate? →
The Direct Debit mandate is the term some use to refer to the Direct Debit Instruction (DDI).
The Direct Debit Instruction (DDI) is the way that the payer (the owner of a bank account) gives their authority for an organisation (service user) to collect Direct Debits from their account. Authority can be given via a paper Direct Debit Instruction that the Payer signs and returns. Alternatively it could be given via Paperless Direct Debit (PDD) sign-up methods. These include via the telephone, face-to-face, electronic document signature and the internet. You can read more about the Direct Debit Instruction in our blog.
How long do I need to keep the Direct Debit Instruction for? →
It is up to the service user to decide how long to store the paper and the method of storage.
The Service Users Guide and Rules to the Direct Debit Scheme, Bacs
The length of time that an organisation should store the DDI is not covered by the Scheme Rules. Rather, it is up to the organisation to decide based on their customer base and attitude to risk. Other considerations include the value of collections, the risk of indemnity claims, GDPR processes and storage arrangements.
Under the Direct Debit Guarantee, if a payer feels that an error has been made in the Direct Debit collection, they can request a refund. As a result, a payers bank may request a copy of the DDI. To respond to this, many organisations will keep the DDI for at least the length of the contract with the payer.
As the Direct Debit Guarantee is unlimited in time and amount however, the payer could request a refund at any time. The paying bank could therefore request a copy of the DDI at any time. This could even be after the contract has finished. Some organisations will therefore choose to keep a copy of the DDI indefinitely.
Remember: If a service user is unable to provide a copy of the DDI within 7 working days from the date of request, they will become liable for any Direct Debit collected under the DDI.