what is Direct Debit
First launched in 1968 a Direct Debit is simply a way of allowing a company or organisation to collect payment for their goods or services directly from your customer’s bank account (always assuming that you have obtained their permission.) These might be regular payments, for example paying your mobile phone bill monthly, or they may be irregular like one off or annual subscriptions.
A Direct Debit takes the form of an instruction to a bank or building society from the consumer, giving permission for the above to happen.
A Direct Debit has many advantages for a business owner including:
- Cost savings. When you are paid by cheque for instance, it can take up to four days to clear into your account. Also Direct Debits can’t get lost in the post.
- Direct Debit is cheaper than a cheque and safer than cash
- You are in control on the date Direct Debits are collected and paid into your account
- You have the funds cleared into your bank account exactly as you require them
- Direct Debits eliminate time consuming and costly accounting and reconciliation
- Direct Debits can play a role in your marketing as consumers are keen on the benefits to them
- They make cash flow forecasting easy and predictable
When you select Eazipay to be your Direct Debit collection partner you can be sure that the process of working with us will be easy and stress free.
Whatever their needs and whatever sector they operate in all our customers have one thing in common, one thing that unites them: they all derive a direct financial benefit from using Eazipay’s Direct Debit collection service.
There are just four steps to implementing a Direct Debit collection process with us. You do the first, we do the other three:
- Send us the details of your customer
- We give the bank five working days’ notice of the new Direct Debit
- On day five we can collect the Direct Debit for you
- Two days later cleared funds are transferred to your account