Direct Debit payments are a quick, easy and popular- for over 50%
of the UK bill paying population, a Direct Debit solution is their
preferred payment method.
Despite their popularity, there still
seem to be a few myths and misconceptions around Direct Debits, so we
thought it would be interesting to highlight - and disprove - the 5 most
common myths...
Myth #1 - Direct Debits are the same as Standing Orders
This
product differ from Standing Orders in a number of ways. A Standing
Order is for a fixed amount on a fixed date whereas this product are
completely flexible, and can be for variable dates and amounts.
A
Standing Order is originated (pushed) from the payer's bank, whereas a
product is originated (pulled) from the organization collecting the
money. Perhaps the most important fact for customers is that the
payments are fully protected by the product Guarantee. A Standing Order
offers no such protection.
Myth #2 - Direct Debit software is expensive
Many businesses are under the mistaken impression that the software needed to collect this payments is expensive.
The
truth is quite the opposite, particularly if your solution is
Cloud-based. You don't have to purchase any expensive in-house software,
and you won't have to pay for installation or upgrades.
Myth #3 - Direct Debit software is difficult to install
With
Cloud-based Management software, you don't need to waste any time
installing or configuring hardware. The Cloud is simply remote access
computing, with all the hardware and software needed sitting in a
secure, external location - so you don't actually have to install
anything. Your provider should take care of all that for you.
Myth #4 - Direct Debit software means lots of costly upgrades
A
good Cloud-based solution will operate on a modular basis, so you only
pay for what you use and can control your resources, with the ability to
scale up or down on demand. For example, you shouldn't have to pay more
if you want to add more payers - your annual subscription fee should
cover additional payers, and allow your business to grow without any
additional costs.
Myth #5 - Setting up Direct Debit Payments is time consuming
A
popular misconception is that all customers have to sign a paper this
Instruction, meaning that businesses have to arrange a face-to-face
meeting or wait for the instruction to arrive in the post.
The
Truth? Paperless the product instructions are a common sign-up method -
and are much quicker than a paper approach. Instructions can be
completed via the telephone, online or face-to-face.
No comments:
Post a Comment