News & Articles

Read the latest news, articles and opinions about all the issues within the world of Direct Debit, Direct Credit and SEPA.

Category: Paperless Direct Debit (PDD)

Paperless Direct Debit and Electronic signatures

April 06 2017

Many organisations that use direct debit as a means of collecting regular payments will have migrated to the Automatic Direct Debit Instruction Service (AUDDIS), which allows direct debit instructions to be sent electronically to BACS. From there, it’s a sensible...

Advantages of Paperless Direct Debit for Your Members

February 06 2017

Direct Debit - particularly paperless direct debit - offers a number of advantages for organisations receiving payment in this way – but as with any such system, the benefits have to be mutual. As any membership organisation knows, it’s vital to be able to...

Modulus Checking and Paperless Direct Debits – Why & How?

April 29 2016

The latest Service User Guide and Rules to the Direct Debit scheme (SUG&R v4.1) has clarified what is and is not provided by modulus checking. Modulus checking describes the ability to check that a bank account number and sort-code are accurate.  It does...

Do ‘KYC’ checks need software?

April 08 2016

'Know Your Customer' (KYC)' checks are a mandatory requirement for any Paperless Direct Debit process, (e.g. where there is no paper Direct Debit Instruction (DDI) to be signed).  Does a service user, the organisation collecting by Direct Debit (DD), need software...

Collecting Direct Debits? Concerned about Fraud? Do you KYC?

April 08 2016

Direct debit fraud....really?  Yes, it is possible but it is a much rarer thing compared to credit card fraud.  For those who collect direct debits (service users), reducing risk in collections is paramount. Know Your Customer (KYC) checks can aid this and is...

Direct Debit Guarantee – Are you using the wrong version?

February 06 2015

Over the Christmas holidays I purchased a gift for a family member of a magazine subscription.  It was gratefully received and we were both happy.  Afterwards however,  when I received a confirmation letter with details of my Direct Debit payment schedule, I...

How long should you store a Direct Debit Instruction?

April 02 2014

A Direct Debit Instruction (DDI) is the authority given by the payer to enable an organisation to collect Direct Debits from the payers account.  This DDI can be collected using a paper form that the payer signs and returns to an organisation, or if the Service...

ID checking for customers signing up for Direct Debits: Why and How?

April 09 2013

ID checking is required for any organisation using Paperless Direct Debit (PDD) sign up.  The Service User’s Guide and Rules to the Direct Debit Scheme (Section 16.3) states: “Prior to the origination of any Direct Debits the service user must verify the...

Modulus Checking: What, Why and How?

April 08 2013

Modulus checking is mandatory at the point of customer signup when you operate Paperless Direct Debit, (PDD).  It is highly recommended at the point of customer sign up for users of both AUDDIS (Automated Direct Debit Instruction Service) and paper based Direct...