The Direct Debit scheme can help your business:
• Control cash flow – greater control over the timing of funds credited to your account.
• Save time and money – no need for reminders as payments are collected automatically from customers' accounts.
• Maintain records – computerised record-keeping makes it easy for you to monitor and control payments.
• Increase accounting efficiency – helps you to identify unpaid items quickly.
• Improve control and security – through a full audit report of items processed and any rejected transactions.
• Amend and cancel instructions – the automated direct debit amendment and cancellation service – lets you receive amendments and cancellations electronically from the paying banks in a consolidated way.
How Direct Debiting works
The scheme allows you to collect payments agreed between you and your customer. Arrangements can be made to collect payments at regular or irregular intervals. The amounts can be fixed for a specific period, for example subscription payments, or varied from payment to payment.
If you are set up to receive payments directly, Direct Debits are submitted to the Bacs payment infrastructure straight from your computer to Bacs by BACSTEL-IP – an Internet Protocol based way of accessing Bacs services.
With BACSTEL-IP you will be able to input direct debit files, monitor the status of payments and receive reports quickly, efficiently and securely online.
Payments are processed over a three-day period.
In order to be accepted into the Direct Debiting scheme, you must have an authorised sponsor such as NatWest. We need to be certain that your organisation meets the legal, administrative and financial requirements of the scheme.
Customers are protected by the terms of the Direct Debit guarantee which you must issue to your customers on behalf of the banks and building societies.
A number of additional services are available to improve the efficiency and accuracy of setting up and processing direct debits.
Automated Direct Debit Instructions Service (AUDDIS)
For the processing of direct debit instructions, AUDDIS functionality supports organisations sending direct debit instructions electronically. It is mandatory for all new service users that submit direct to Bacs.
Direct Crediting can help your business:
• Control cash flow – make payments whenever you want, up to 70 days in advance.
• Save time and money – The charges for direct credits can be significantly lower than for cheque or cash payments and save time. There are no cheques to prepare and sign or paper credit transfers to print and distribute.
• Improve management information – view a wide range of Bacs payment reports online.
• Maintain good relationships with employers and suppliers – they have the advantage of cleared funds into their accounts on specified dates.
How Direct Crediting works
To make Direct Credit payments, you have a choice of methods to suit the needs or resources of your business. We will help you set up and run Direct Crediting for your business, giving you ongoing support via our Helpdesk.
Payments can be submitted direct from your computer to Bacs using BACSTEL-IP – an Internet Protocol based way of accessing Bacs services. All you need is a PC, the appropriate modem and the required software, which is available from a specialist software supplier.
BACSTEL-IP offers the ability to submit payments and collect reports across three connection types:
- Bacs dial-up Extranet
- Bacs fixed Extranet
Alternatively, payments can be submitted via a bureau that will process the payments on your behalf. You can quickly update user details in real time, ensure all your customer details are correct, and check the progress of files submitted to Bacs.