Paperless Direct Debit (PDD)
Direct Debit is generally understood to be the easiest way for most organisations to collect regular payments. It was once only used by larger organisations but Direct Debit was brought to the masses via improvements in technology. Paperless Direct Debit (PDD) is now enjoying a similar boom. Even the smallest organisation has the ability to utilise Paperless Direct Debits with little cost.
Paperless Direct Debit is a way of obtaining authority from a payer (customer) to collect Direct Debits from their account without the payer having to complete a paper Direct Debit Instruction (DDI). The Payer gives their authority…
- verbally via the telephone
- in person, via face to face sign up (where a company representative uses a smart device or laptop)
- online via a website – Internet sign up.
Things to consider
Operating a Paperless Direct Debit method of sign up offers lots of advantages. These include:
- a reduction in paperwork
- improved accuracy
- a speedier turnaround
- increased simplicity for customers
- a greener and more environmentally friendly approach.
Before moving to PDD however, an organisation must first operate on AUDDIS and there are strict PDD rules that have to be adhered to, for example:
- Telephone scripts and internet pages / screen shots must be approved by the sponsoring bank.
- The organisation must also send a confirmation to the payer. This will include a copy of the Direct Debit Guarantee.
- If you are not obtaining a paper Direct Debit instruction you will need to check the payers ID. This is known as KYC (Know your customer).
Introducing Paperless Direct Debit
If you want to use Paperless Direct Debit then you need to be able to submit new Direct Debit Instructions via AUDDIS. If you are still sending paper instructions to the bank then you will need to undergo what is known as an AUDDIS migration, though this can be carried out at the same time as the transition to Paperless Direct Debit.
The basic steps to get Paperless Direct Debit up and running are as follows:
- Contact your sponsoring bank and ask for the Paperless Direct Debit application forms. If you also need to migrate to AUDDIS there are combined forms that can be used.
- Complete the forms and return them to your sponsoring bank
- You will need to submit all the documents, e.g. web sign up screens, scripts etc. to the bank for approval before you can use them. Also, you will need specific permission from the sponsoring bank to use different paperless channels. Even if you have been approved to use telephone sign up for example, you will still need to get permission to use internet sign up. You do not need to complete a separate application form for each channel, though you will need to complete a separate application form for each service user number that you wish to use.
- The bank will then assess your application. When they are happy that you meet all the relevant requirements they can give their authority for you to begin collecting Direct Debits using paperless sign up. (As part of the approval process you will need to complete a basic test via Bacs of your understanding of the rules and processes involved. The test is not overly complicated however ensuring that your employees are suitably trained and prepared to deal with customer enquiries is a must! It will help to make your implementation smoother and more successful.)
Clear Direct Debit Consultancy and Support
Introducing Paperless Direct Debit can be quite straightforward – when you know what steps to take and in what order. Getting help before you start saves money and time. We can manage the whole project for you, or just provide some advice and guidance over the phone. From ensuring you receive the correct information from your bank to providing you with scripts and templates, we can help at all stages to enable you to successfully incorporate paperless sign-up methods. Contact us today for more information about how we can support your organisation.