Direct Debit Management Software is designed to manage the whole process from setting up direct debits to getting paid. It helps you keep track of your direct debit setup and the records. You can quickly and easily generate PDF invoices for your clients, view all of your scheduled payments, check whether a client has paid or not, view upcoming payments and much more!
In this post, we review the aspects of Direct Debit Management Software, who controls direct debit, How do I set up a direct debit for my client, how to manage direct debits.
Direct Debit Management Software
Direct debit management software makes it easy to automate the collection of payments from customers. Direct debit management software can help businesses collect payments for utilities, subscriptions, taxes and other recurring charges.
Direct debit management software allows organisations to manage their direct debit payments.
Direct debit management software allows you to manage your direct debit payments. It allows you to create agreements and collect funds from customers, as well as track their payment history and manage your direct debit contracts.
Some direct debit management solutions accept online payments and offer integrated payment gateways, as well as traditional direct debit payments.
In addition to managing your direct debits, some services offer integrated payment gateways, which allow you to accept credit card payments. Payment gateways are used for processing credit cards and other online payments. By integrating them with your direct debit management software, you can accept transactions from clients and customers who want to pay by card rather than setting up an entire new service for accepting card payments.
Integrated payment gateways can also be used as part of a process for taking orders or making reservations on your website—for example, if you’re selling tickets online or providing hotel rooms through an app. This makes it easier for customers who don’t have access to the traditional paper ticketing system; they can just choose their seat or room type when they book their tickets through the portal provided by the payment gateway operator instead of having to wait in line at the box office or call ahead of time with questions about availability.
Direct debit management software can help businesses automate the collection of payments, saving time and reducing errors.
Direct debit management software is designed to automate the collection of payments and reduce errors. Automation can help you save time, which means that you’ll be able to spend more of it on other critical tasks.
Direct debit management software is also useful because it helps businesses automate the collection of payments, saving time and reducing errors.
Direct debit management software is suitable for businesses of all sizes, and many solutions support multiple companies or locations.
The software that you use to manage payments is suitable for businesses of all sizes, and many solutions support multiple companies or locations. As well as offering a solution that can be used by multiple companies and locations, most have the ability to manage payments for multiple bank accounts and currencies.
In addition, some solutions also offer the option to receive payments from a wide range of payment methods including cheques, Bacs/Sterling Interface Direct Debit (SDD), direct debits from customers’ bank accounts, credit cards and standing orders.
Businesses in the financial services, education and the non-profit sectors are among those who use direct debit management solutions.
Direct debit management solutions are suitable for businesses of all sizes. As a business owner, it is your responsibility to check the direct debits being set up on behalf of your clients.
The following types of companies use direct debit management solutions:
- Financial services;
- Education; and
- Non-profit organisations.
Direct debit management solutions are typically cloud-based and SaaS (Software as a Service). Many suppliers also offer stand-alone software or on-premises hosted solutions.
Direct debit management solutions are typically cloud-based and SaaS (Software as a Service). Many suppliers also offer stand-alone software or on-premises hosted solutions. Cloud computing provides much more than just a pay as you go model, the solution can offer greater flexibility, scalability and ease of management.
Cloud based solutions are cheaper to run because they don’t require expensive hardware, IT support or data centres. Instead everything runs in the cloud so there is no upfront investment needed in infrastructure to support it either.
They are easier for users because all your data is stored centrally meaning it’s available from any device wherever you are so there’s no need for multiple installations of databases and other back office applications which can slow down your systems if not configured correctly
Features of direct debit management software may include customised invoicing, automatic bank reconciliation, reporting tools, transaction history maintenance and electronic payment authorisation.
Direct debit management software enables businesses to easily manage, track and print their invoices. Many companies opt for a software solution as it provides them with all the necessary tools in one place.
Invoicing is the first step towards managing your customers’ payments so it is important that you have an efficient process in place. You can customise your invoices according to your company’s preferences, which will make it easier for customers to see what they are paying for and make payment arrangements if needed. You may also add additional details on these invoices such as payment terms or discounts that they qualify for. This way you can collect more money while gaining customer loyalty at the same time by making sure they are happy with their experience using your product or service.
If you want to avoid overcharging clients like many other companies do when using traditional methods such as sending bills via mail or emailing them directly through their inboxes instead of using a dedicated invoice generator tool then consider using direct debit management software instead – this will allow users (such as employees) within organizations who need access without requiring any extra training beforehand; meaning less resources spent overall while still keeping things secure enough so nobody else outside would be able to see sensitive information either electronically stored elsewhere (such as bank accounts etc.) or physically printed out onto paper sheets before being sent out again into circulation around town!
Direct Debit Management Software makes it easy to automate your collection of payments
Direct Debit Management Software is a powerful tool that makes it easy to automate your collection of payments.
It can be used to manage multiple companies or locations.
Some features of direct debit management software include customised invoicing, automatic bank reconciliation, reporting tools and transaction history maintenance.
Direct Debit Management Software also has the ability to electronically approve payments from customers’ bank accounts – making it easier for you to manage your business on a daily basis!
How do I set up a direct debit for my client
Merchants often ask us to help them set their customers up to use bank debit. In this guide, we provide six simple steps to help you, the merchant, through the entire process.
By following these steps, our merchants have greatly increased customer sign ups, improved cash flow, and spent less time on processing payments. To set customers up to use bank debit, we recommend you do the following:
1. Send advance notice of the switch
2. Send a bank debit request
3. Send a reminder for customers who haven’t signed up
4. Follow up by phone for customers who haven’t signed up
5. Address any customer concerns
6. Send a personal reminder to any remaining customers
If you’re already using bank debit, our bulk change process allows you to easily transfer your existing customers to a new provider.
1. Send advance notice of the switch to bank debit
First, notify all your customers that you’re planning to use bank debit to take payments. Ask customers to tell you if they have any questions or concerns, so you can address these as soon as possible.
You can use the below email template to tell your customers you’re moving to bank debit. This step isn’t strictly necessary, but many customers appreciate being notified early.
Here at [your business], we want to save you time paying us each month. So, we’re moving all regular payments to bank debit.
Switching to bank debit will save you the hassle of manually paying each month. You’ll be notified of any upcoming payments, and you can cancel them whenever you want. What’s more, the bank debit Guarantee makes this the safest way to pay.
You will receive an [online/paper] bank debit Mandate form from us shortly. We would be grateful if you could [complete it/return it] by [due date].
If you have any questions, call us on [your phone number].
2. Send a bank debit request to all your customers
The below template provides customers with a brief explanation of what will happen and gives them a further chance to ask questions. You can use it to send the mandate form to your customers.
Further to my email last week, we’re now moving your payments to bank debit. To set up your bank debit payment, please [complete this secure online mandate form/ return the enclosed mandate form] before [due date].
When you have done so, we will start billing you according to the agreed payment schedule. You’ll be notified of upcoming payments by [email/letter], and you can cancel them if you want.
Your invoice for this month’s work is attached. We will bill this against the bank debit once you have set it up.
Let me know if you have any questions.
3. Send a reminder to any customers who haven’t set up a bank debit
If you are still waiting to hear back from a customer a week later, you can use this template to remind them to return the mandate to you:
This is a reminder that we would like you to set up payment by bank debit. Your invoice for this month’s work is attached.
We will bill you against this invoice once you have set the bank debit, so please [complete the secure online mandate form/return the enclosed mandate form] before [due date].
Let me know if you have any questions.
4. Follow-up by phone with anyone who still hasn’t responded
If some customers still haven’t set up an authorization, it’s best to call them a few days before the cut-off date. Explain what they need to do and how it will benefit them.
Our merchants have found that the following explanations work well:
Paying by bank debit saves time – you only have to do it once and we’ll do everything else for you
You can set up your payments instantly using paperless bank debit
You’re more protected as a consumer
bank debit saves us admin. time, so we can focus on giving you great service
5. Send a personal reminder to any remaining customers
If any customers still haven’t set up a mandate, it may help to send them a personal reminder. The below template lets you resend the mandate so your customer can return the form to you without needing to search for it again.
We spoke on the phone last week about moving your regular invoice payments to bank debit, but I noticed that you haven’t had a chance to fill out the mandate form yet.
[Please click the link below to set up your bank debit today, before your invoice due date on [due date].]
Your invoice for this month’s work is attached, and we will bill you against this invoice once you have set the bank debit.
Let me know if you have any questions.
GoCardless makes moving your customers over even easier
In our experience, the above steps help merchants move customers over to bank debit quickly and easily. To make the process even smoother, we offer you the ability to:
Move your customers over automatically. If you’re already using bank debit, our bulk change system means that you can transfer all your existing customers over without them doing anything.
Add ‘Pay now’ links to your invoices. This allows your customers to click through to the GoCardless payment page directly from an invoice and set up the payment immediately.
Offer customers flexible payment dates. GoCardless lets you submit payments every day of the month which gives you the option of offering your customers more flexible payment dates.
who controls direct debit
A payment refers to a one-off payment to another person or organisation. This could be to a friend or family member or it could be a bill payment or a payment to a credit card company (Barclaycard or otherwise).
A transfer is a one-off transaction where you move money between two Barclays accounts that you own, such as transferring cash from your current account to your savings account.
A standing order is a regular payment that you can set up to pay other people, organisations or transfer to your other bank accounts. You can amend or cancel the standing order as and when you like.
A Direct Debit can only be set up by the organisation to which you’re making the payment. Normally, you sign a mandate that gives the company permission to take funds from your account in an agreed way – like a monthly gym membership or your mobile phone bill. It normally confirms who’s receiving the payment, the account to be debited, the amount and the dates of the payment. You‘re protected under the Direct Debit Guarantee scheme so that any amount debited in error is refunded immediately.
Continuous Payment Authority
A Continuous Payment Authority (CPA), which is sometimes referred to as a recurring payment or a ‘continuous payment transaction’, is where you give a business permission to regularly take money from your debit or credit card whenever they think they’re owed money. Often payday loan companies, online DVD rental subscriptions, porn websites, magazine subscriptions and gym memberships use this method of payment.
A CPA is different from a standing order or Direct Debit because the payment instruction is with the business, not with a bank. This gives them more flexibility in taking money from your account – they can charge fixed or varying amounts, and they don’t have to specify a date when they’re going to take a payment.
how to manage direct debits
From utility bills to rental payments, millions of businesses and individuals alike use direct debit every month. If your business collects direct debit payments, you’ll need a system to appropriately manage the complexities of these transactions.
In this guide, we’ll break down the uses of direct debit management software as well as its numerous benefits.
When do you need a direct debit management system?
Direct debits go by many different names, including ACH debits, automatic transfers, auto-pay, and authorized withdrawal. No matter the name, this payment method occurs when a bill payer authorizes payment to be withdrawn directly from their checking account. Payment can be taken at regular intervals over the ACH network, making this a convenient way for the bill payer to keep on top of payments without the need to remember their due dates each time.
While direct debit offers a set-it-and-forget-it level of convenience for the payer, the situation can be more complicated when your organization needs to keep track of hundreds of payments each month. You’ll need a system in place for managing direct debits, starting with gaining the initial authorization from customers including their bank details. Managing direct debits also involves sending advance notice letters, issuing transaction codes, and balancing payments in your accounting books. Using direct debit management software helps automate all aspects of this process for easier management.
What is direct debit management software?
Direct debit management software helps facilitate and track bank debit payments. Direct debits use the ACH network, which connects accounts between different financial institutions. Direct debit software manages the various steps for payment collection:
The customer agrees to make ongoing, recurring payments for regularly billed services.
The customer signs a mandate or authorization form agreeing to automatic direct debit collection.
The business submits anACH debit request when payment is due using an Originating Depository Financial Institution (ODFI) approved third-party processor, like Dwolla or PayPal.
When the request is processed, the ACH network pulls funds directly from the customer bank account and it goes through the settlement process to complete the transaction.
There are multiple benefits associated with managing direct debits automatically:
Collecting direct debits is more cost-effective than collecting card payments, paper checks, or wire transfers, all of which involve higher fees.
Direct debit management software automates the process to eliminate the chance of delayed or failed payments.
Processing time is faster using automated software because you can arrange collection ahead of time for settlement when you need it.
Direct debit management systems are designed to be user-friendly with streamlined platforms and integration with your accounting software.
Managing direct debits with ACH processors
To get started with integrating direct debit management software into your business platform, you’ll need to compare the options. ACH processing partners help businesses process recurring direct debits using custom APIs. Here are a few of the main options:
GoCardless
With no contract, monthly, or set-up fees and over 200 partner integrations, GoCardless is a natural fit for most organizations. It offers a payment solution allowing businesses of all sizes to collect and manage direct debit payments. GoCardless partners with major cloud accounting and invoicing software including Xero and Salesforce, ensuring you can fit direct debit payment collection into your existing setup. Features like Success+ help businesses cut down on financial admin with AI-driven automatic payment retries, reducing the chance of failed payments.
Dharma
Another direct debit management system to look at is Dharma, which offers a basic ACH processing platform. This can be used to accept checks as well as set up and manage recurring bill payments. If you’re looking for a basic payment processor, Dharma can fit the bill, although it’s not suitable for high-risk industries or more complex management capabilities.
Dwolla
Dwolla is one of the smaller providers specializing in integrating with the ACH network to help businesses send and receive ACH payments. Dwolla works with any US bank account and credit union to manage direct debits, making it a good fit for businesses dealing with domestic recurring payments. Users have reported problems with high fees as their business scales and the international payments functionality, understandable as Dwolla is one of the smallest companies in this list.
Stripe
Stripe is a full-service payment processor that helps manage card payments as well as direct debits. Its strengths include a high level of flexibility and a selection of payment plans. One thing to keep in mind is that Stripe is designed for developers, so if you don’t have one on your business team already, you’ll need to hire a professional to help you get started. In addition, Stripe’s size limits the customer support available to its users, which naturally can cause frustrations.
Ultimately, the best direct debit management system will depend on your business’s size and the number of transactions you need to process. As a direct debit specialist, GoCardless offers fast, simple access to the ACH network, making it easy to manage payments through a simple online dashboard.