Taking Direct Debit payments can transform a business, dramatically improving cash flow and removing hours of admin.
Despite this, establishing how to start accepting Direct Debit payments can be difficult for many businesses. Numerous businesses miss out on the powerful benefits of Direct Debit, because they perceive the set-up to be too much of a task.
However, it doesn’t need to be complex. This article discusses exactly what options are available to businesses looking to accept Direct Debits and shows how it can be a straightforward process.
Taking Direct Debit payments with your bank.
In order to become a Direct Debit originator, which enables you to directly submit payments to Bacs and collect Direct Debit payments yourself, you must first gain sponsorship from your bank and be issued with your own Service User Number.
Gaining sponsorship involves undergoing a lengthy, stringent Direct Debit application process with your bank. Becoming a Direct Debit originator requires meeting several criteria, such as being in operation for a minimum number of years and meeting specific revenue targets.
Meeting these criteria enables you to become a Direct Debit originator and collect payments yourself, potentially benefitting from the economies of scale this brings.
Many businesses, however, choose to not pursue this route even if they are able to, finding that the costs of purchasing and maintaining Bacs-approved software alongside specialist staff and scheme knowledge to be prohibitive. In this case, you can collect Direct Debits using a Bacs-approved bureau like First Capital Cashflow.
Collecting Direct Debits with a Bacs approved bureau
Should you be unable to get your own Service User Number (SUN) through your bank, or if you simply don’t want to collect and manage your own Direct Debits, you have the option to collect payments through a Bacs-approved bureau.
Bureau’s work specifically to help businesses collect Direct Debits, providing clients with their own SUN and offering the option to collect payments on their behalf. This enables businesses to focus on activities which will grow their business, rather than worrying about the administration of managing a payments system.
Not only does this make it easier for businesses to collect payments, it also speeds up the set-up process from months to a matter of weeks, and drops initial costs from tens of thousands to just hundreds. Alongside this, you are also able to benefit from the expertise of a team of people who specialise in Direct Debit, ensuring you benefit from their full support should any problems arise.
About First Capital Cashflow
At First Capital Cashflow we’ve been providing fully-managed Bacs Direct Debit Management services for over 15 years. Our innovative, cloud-based platform comes with a no end-of-life guarantee, so you never have to worry about expensive software upgrades again. Our industry-leading 98% client retention rate shows our commitment to ensuring all clients receive outstanding service.
As a Bacs approved Bureau, we open up access to the Bacs scheme offering a Direct Debit collection and management solution, for organisations unable to obtain their own SUN.
We provide simple, compliant and secure cloud-based Direct Debit solutions for a wide range of sectors, removing the complexity and concern around regulation, IT software, security and risk.
In a nutshell, First Capital Cashflow will sponsor an organisation and provide them with their own SUN, which is fully branded, so their name appears on their customer’s bank statements.
First Capital Cashflow manages the whole customer collection process. Our professional and qualified Bacs team, offers our customers the reassurance that they are fully supported and compliant with the Direct Debit scheme rules.
Customers have multiple ways to sign-up to Direct Debits. This can be done via the organisation’s website, paper mandates, phone or email, providing businesses with flexibility and choice when on-boarding / acquiring new customers.
Customers will receive advanced notice or Bacs welcome email notifications, which can be automatically generated and sent to the payer. Using SMTP relay host technology these will appear to come from the organisation’s own domain.
If you’d like to find our more about our Direct Debit management services you can call our team on: 0344 8266 700 of fill in our contact form.