Implementing Paperless Direct Debit
If your organisation hasn’t yet Implemented Paperless Direct Debit sign-ups, you are probably missing out on some major benefits.
If you want to improve your take up then you need to offer a payment option which is easy – easy to buy and easy to pay.
Removing friction reduces the opportunity for people to change their mind or exit the process when it becomes onerous.
It is remarkable that so many organisations still only accept signed Direct Debit Instructions (DDI’s) when
Paperless Direct Debit can be relatively easy to implement. So why do so many organisations drag their heels?
The Benefits of Implementing Paperless Direct Debit
Organisations we speak to that have not yet implemented Paperless Direct Debits, rarely claim its because they don’t want to. Some think their customers don’t want to use it however the reality is that this is almost never the case when tested. Most organisations realise that there are many benefits of paperless Direct Debits including:
- Quicker Direct Debit set up
- Greater overall uptake
- Reduction in errors
- Better customer service
- Improved image
The most common reason for NOT implementing Paperless Direct Debit is that people don’t really understand what is involved. It can seem complex. There are a lot of Rules to follow, as laid out in the Bacs Direct Debit Scheme Rules. Often we find organisations are quoted large sums of money for specialist software or have found it difficult to get through the bank application process. We often have to do some myth busting and show some alternative options to get people to see that it can be done fairly easily and with low ongoing costs.
Tips for implementing Paperless Direct Debit
- Don’t think of PDD as always being online payments. Some organisations have started with telephone sign up as it requires no software or web development. It’s often the easiest way to get started without committing to a bigger project. Electronic document signature is often a great way to sign customers up and again is relatively low cost. It is also often more suitable for business to business transactions.
- Don’t accept everything the bank tells you about the rules. Many organisations assume that the bank must know best. This is not always the case! Or sometimes the bank may not be proactive in suggesting simple solutions. Know your customer (KYC) checking is often a sticking point and organisations can struggle to satisfy the bank that their processes are sufficiently robust and scheme compliant. It doesn’t have to be difficult! Lots of organisations have managed it before and the answers are out there.
- Don’t buy expensive software or sign up to solutions without checking for alternatives. We have seen so many examples of companies implementing overly expensive and complex solutions thinking it was an easy option only to find that they still have challenges with the sign up process. No 2 organisations are the same and one size rarely fits all.
- Do ask other organisations what their experience has been. Try and get an independent reference before signing up to any software or services.
- Do make sure you are informed before attempting to fill out an application for the bank or engaging with suppliers. Proper training or some online research goes a long way. Shop around. Try and look for partners that offer you alternatives and not just try and sell you a solution before understanding what your unique set up is.
How Movimo can Help
Our payments experts have helped hundreds or organisations implement different flavours of Paperless Direct Debits. From simple guidance to complete project management we can offer practical and cost-effective solutions tailored to your project and needs.
Still Got Questions?
If you have questions about Implementing Paperless Direct Debits, please get in touch. We are here to help.