5 reasons why your business should be using Direct Debits

For years now consumers have benefited from using Direct Debits, however, have you ever stopped to think about how, as a business you can be the ones to benefit from offering them?

Direct Debit is an easy way to automatically collect payments from your customers’ bank account, through a direct bank-to-bank transfer, with no cards or manual payments required. A Direct Debit service allows the collection of payments on agreed dates of the month and at multiple frequencies. This results in a simple, safe, and speedy service for both you and your customers.

Why should you offer Direct Debit payments as a business?

1. Guaranteed on-time payments

Direct Debit payments are automatic, meaning you don’t need to chase customers for payments. This is particularly useful for landlords – who are often trying to avoid the nightmare of rental arrears. Once a direct debit authority is set up, you can collect the rent directly from the tenant’s bank account on the date it’s due. Straight away this reduces the administrative burden that comes along with other payment methods, such as banking cash, cheques or chasing overdue payments.

2. Reduced business costs and administration

Direct Debits allow staff to concentrate on other valuable tasks, by removing overheads and reducing reporting processes. Being a bank-to-bank payment, using Direct Debits mean you don’t incur additional costs of using card networks to get paid. The time you would spend chasing and managing payments can instead be spent working on your business, making Direct Debit a more cost-effective and convenient option.

3. Safe and secure

Direct Debits are a safe option, due to being a bank-to-bank transfer. Many governments and utility companies utilise Direct Debit for bill payments, due to its secure nature and reduced risk of fraudulent activity. The Direct Debit Guarantee protects customers from incorrect payments, entitling them to immediate money back guarantee in the event of an error. Customers will be given advanced notice of payment collection, ensuring they can provide sufficient funds in their accounts for you to collect.

4. Simple set-up

Setting up a Direct Debit is simple, and you only need to do it once. Organisations need to collect customers’ bank details, and have them authorise you to take payment, saving you both a significant amount of time and effort. 

5. Popular with customers and businesses

In our latest consumer survey carried out by TLF Research, the most popular payment type across all household bills for consumers remained Direct Debit, with an average take-up of 45.8% across all bills. allpay’s Direct Debit service provides your organisation with an online set-up procedure that is quick, accurate and secure. Using the online portal, your business can setup, amend and cancel Direct Debits, as well as, view all collected, failed and upcoming payments.

allpay’s Direct Debit

As a Bacs approved bureau and a Bacs accredited facilities management provider, allpay can offer clients a managed or bureau service. Being a trusted Direct Debit solution provider, it’s easy to understand why 65% of our clients been with allpay for over 7 years.

For further details or to receive a quote, please call our team on 0330 135 9515, or visit our Direct Debit page.

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