Debit

Debit is a sum charged as due or owing. An accounting entry which results in either an increase in assets or a decrease in liabilities. Direct Debit is the easiest way for you to pay your household bills or make regular payments to any kind of organisation that accept Direct Debit payments. Direct debit is a payment method available in some European countries which allows an organisation to instruct their bank to collect varying amounts directly from customers' accounts.The direct debit guarantee is a powerful safeguard for customers. It saves time, is more convenient and gives you greater control over your money.

A Direct Debit is an instruction from a customer to their bank or building society authorising an organisation to collect varying amounts from their account, as long as the customer has been given advance notice of the collection amounts and dates.
If you pay by standing order, it is up to your bank to send the payment. If you pay by direct debit, it is up to the payee is bank to call for the payment, but you will rightly look to your own bank/building society to ensure the smooth running of any direct debits. Mistakes and errors are covered by the direct debit guarantee.

Benifits of Direct Debit:

Enable you to spread the cost of large bills

Monthly instalments allow you to budget for bills more effectively by spreading the costs.

Ensure you do not incur penalties for delayed payments

Once a Direct Debit mandate is signed payments are made automatically on your behalf. There is no need to worry about postal delays or payments being lost in the post.

Saves you time & money

Eliminates time spent in queues to pay bills. No postage expenses involved in mailing cheques.

Offer flexibility

The Originator of the Direct Debit may provide an option to allow you to choose your payment date.

3 ways of setting up Direct Debit Instructions

Once you have become a Direct Debit Originator, you have a choice of three ways of setting up Direct Debit Instructions (DDIs) to collect payments from your customers.

Paper-based Direct Debit Instruction

You simply supply your customer with a printed DDI. Once your customer has completed, signed and returned this and you have checked and recorded the details, you forward it to the customer is bank or building society. Upon receipt the customer is bank will normally accept and record the DDI on the customer is Direct Debit records.

AUDDIS - AUtomated Direct Debit Instruction Service

AUDDIS is an enhancement to the Direct Debit service, which improves the processing of DDIs, resulting in time and cost savings for you. Instead of posting the paper DDI to the customer is bank, it can now be sent electronically, which means:
» Reduced set up costs
» Faster identification of invalid account information and hence a reduction in unpaids
» Reduced time between the bank receiving and accepting the DDI and the collection of the first payment
» Better quality of service due to reduced processing delays and fewer manual steps
» Reduction in re-keying errors, further improving the quality of service

Paperless Direct Debit

By enabling your customers to sign up at the point of sale, over a telephone or on the Internet, Paperless Direct Debit gives you further clear advantages:
» Customer bank details are taken much more accurately, eliminating later administration problems
» You can eliminate much of the paperwork and postage associated with setting up Direct Debits
» You can begin the collection process earlier