Fighting the credit crunch with Paperless Direct Debits
Fighting the credit crunch with Paperless Direct Debits
Can Paperless Direct Debits help suppliers and customers survive the credit crunch? I think so. For customers Paperless Direct Debits (PDDs) help to spread the cost of payments, rather than waiting for one big bill. Some customers can benefit from discounts offered to direct debit payers. For suppliers it helps with cash-flow and also improves efficiency and speeds up the payment process.
PDDs can include telephone, internet, and telephone key-pad processing. For example, many of our customers use an online system (BACSactive-IP) to enable staff to take details by phone and set up/manage PDDs using a web browser. Others also offer a simple online form for customer’s to fill in themselves. Benefits can include:
- All online - Details can be viewed 24/7 in one location, providing a high level of control, visibility with the option of instant reporting.
- Fully automated - PDDs complement existing systems to make processes more efficient. An online direct debit system can be integrated with back office software to enable straight-through processing.
- Online set-up - Customers can go online to set-up their own direct debit payments therefore keeping administration expenses to a minimum.
- And, of course, no paper, which eliminates associated costs of printing and delivery.
Some Case Examples
Salford City Council added a paperless direct debit function to their existing website. A secure webpage enables finance staff and customers alike to make direct debit payments for council tax, business rates and rent. Using management screens, finance staff can view the newly set-up direct debit mandates, make submissions and download reports from BACS, all within seconds.
Other example applications include Glasgow City Council who use BACsactive-IP to take council tax payments and Scottish & Southern Energy and Veolia Water who use Accountis to take energy bill payments.
Electronic Invoicing applications
We work with a number of organisations to integrate PDDs into their electronic invoicing process, as one of a number of payment options. In these instances, e-invoicing customers not only receive, download, query and approve invoices online, they also pay for them by direct debit. Major plus points for suppliers include reduction of Days Sales Outstanding (DSO), improved cashflow, and management of their income. Customers can enjoy a hassle-free, faster and more streamlined invoice approval and payment process.