Deciding to harness the potential of direct debits for improving cash flow is a strategic move for businesses. However, choosing the ideal partner to facilitate this process is equally crucial. With numerous providers and offerings available, it can be challenging to determine the right fit for your business. This article provides a comprehensive guide, posing essential questions to help businesses make informed decisions when selecting a direct debit provider.
Alignment with Business Objectives:
Ensure your chosen provider aligns with your current and future business goals. An effective partner should seamlessly integrate into your team, managing the intricacies of direct debits without the need for additional staff. This results in significant time and cost savings that can be reinvested in your business.
Branding and Customer Trust:
Confirm if the provider supports branding, allowing your business name to appear on customers’ bank statements. A fully branded solution contributes to a consistent user experience, fostering trust and reducing cancellation rates. Evaluate branding options for online sign-ups, paper mandates, and customer communications.
Cloud-Based Direct Debit Software:
Embrace modern, cloud-based direct debit software to ensure efficiency and security in payment collections. This approach facilitates multi-device, multi-browser, and multi-user access, offering flexibility and agility. Cloud-based solutions eliminate long-term software investments and ongoing maintenance costs.
Security Measures:
Prioritise the scrutiny of security measures in place to protect against errors, fraud, and malicious attacks. Choose a Bacs Approved Bureau with accredited Facilities Management to access the Bacs Scheme. Look for FCA-regulated providers adhering to ISO 9001 standards and those recognised as Authorised Payments Institutes under PSRs for enhanced security and GDPR compliance.
Contingency Planning:
Assess the provider’s contingency plan, ensuring resilience in case of unforeseen events. Robust measures should include multiple internet providers, resilient databases, regular backups, and multiple offsite data centres. Reassurance about timely fund reception is crucial for business continuity.
Bacs Approval and Quality Rating:
Verify if the provider is a Bacs Approved Bureau and scrutinise their quality rating based on inspection areas such as organisational standards, physical security, computer operations, applications and systems support, and Bacs processing and operations.
Speed of Setup and Payment Processing:
Inquire about the speed of onboarding and payment processing. A reliable provider should conduct credit checks and company vetting promptly, guiding you through a seamless onboarding process. Clarity on fund transfer timelines and any potential holding periods is essential.
Customer Experience Across Channels:
Evaluate the customer experience offered by the provider across online, mobile, offline, and in-person channels. A comprehensive solution should support branded online forms, customisable paper mandates, and efficient phone-based onboarding, ensuring a consistent user-friendly experience.
Customer Support:
Assess the level and location of customer support provided by the direct debit provider. Opt for providers with a local customer support team, well-versed in Direct Debit Scheme procedures, to ensure accessible and knowledgeable assistance.
Integration with Third-Party Software:
Explore the provider’s capability to seamlessly integrate with existing third-party software, enhancing operational efficiency and reducing manual steps in the direct debit lifecycle.
Robust Reporting Features:
Prioritise reporting functionality within the direct debit solution for better visibility into income streams. Ensure the reporting features align with your business needs and request a demonstration to evaluate their effectiveness.
Flexibility in Service Offerings:
Confirm the flexibility of the direct debit provider in terms of cost, collection dates, the number of runs per month, and amounts collected. Ensure that the provider can accommodate your business’s growth and diverse payment needs.
Conclusion:
Armed with these crucial questions, businesses can confidently navigate the selection process for a direct debit provider that suits their unique requirements. Choosing the right partner ensures a smooth and secure payment collection process, positively impacting cash flow, customer satisfaction, and overall operational efficiency.
If you are looking for affordable pricing and need help with your payments?
At FastPay, we help a multitude of businesses and organisations take care of their payments. From our Direct Debit Managed service and Powerful Integrations to the FastPay Direct Debit Bureau, we’re committed to providing a payment solution tailored to our client’s needs.
Start a conversation with our friendly team today by calling 0161 737 5290 or get in touch online.
