Paperless Direct Debits (PDD) – Make signing up for Direct Debit easier for you and your customers

Paperless Direct Debits (PDD) – Make signing up for Direct Debit easier for you and your customers

1. What methods can be used for paperless registration?

  • telephone registration through a traditional telephone call,
  • recording by telephone using a telephone keypad entry system,
  • internet registration via the network,
  • interactive television,
  • face-to-face (ie using a PDA, handheld or laptop).

2. What are the advantages of PDD?

  • faster collection turnaround time – no waiting for postal DDIs,
  • Round-the-clock work – ie. with registration on the Internet, the organization can gain new payers outside of working hours,
  • improves accuracy – less input errors or bad handwriting to decipher, bank details verified in real time,
  • reduces documentation – and therefore time and administration costs, and is also more environmentally friendly,
  • encourages more people to sign up, thus creating additional revenue,
  • establishes an immediate relationship with the client, i.e. with registration by phone, it is possible to answer any questions,
  • easy to start and operate.

3. Are there additional considerations with PDD?

To set up a paperless registration system, you must:

  • be live on AUDDIS (Automated Direct Debit Instruction Service). If you haven’t, you must first have AUDDIS,
  • get approval from your sponsor bank,
  • get all web screens, phone scripts and other documentation approved by your sponsoring bank. Examples of all required documents are available in the Service User Guide and the rules written by Bacs. They can be adjusted for submission,
  • performing a module check on the payer’s bank details at the point of capture (a module check is a way of using a mathematical formula to ensure that account numbers and sort codes are accurate and correct);
  • have a KYC (Know Your Customer) process in place. KYC verification is where the collecting organization must verify the payer’s identity and address before any direct debits are made. It is recommended that this be achieved by using historical data from company records or, for new customers, by using a selection of records, e.g. electoral rolls, postcode list or credit rating list which are available from local councils, Royal Mail or other providers.

In addition, users of the service cannot counterclaim if they receive compensation for the reason “payer contests authorization”.

4. Tow do you perform PDD?

  • contact your sponsoring bank for the PDD application forms,
  • complete and return the forms, along with other documentation, for approval,
  • take a basic test of your understanding of the rules and processes.
  • The bank will evaluate your application. Once they give credentials, you can start collecting.

Implementing PDD does not have to be difficult and the benefits to an organization can be significant. For help or more information, get in touch Clear Academy

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