Paperless Direct Debit (PDD) Consultancy
Paperless Direct Debit (PDD) is a method of signing up new Direct Debit Payers without them having to fill out a paper Direct Debit Instruction. Instead, the Payer gives their authority remotely via one of the following methods:

Telephone sign up via a telephone operator

Telephone keypad entry system

Internet sign using approved sign up screens

Interactive TV using guided scripts

Face-to-face using a PDA, device or laptop
Advantages of Paperless Direct Debit
Subject to bank approval, PDD can be up and running very quickly. As an approach it offers organisations clear advantages:

Quick turnaround
Quick turnaround time to collections. No waiting for a postal DDI

24/7 operation
With internet signup, an organisation can gain new payers outside of business hours

Stress-free setup
Quick and simple to get up and running.

Less paperwork
Less administration time; lower costs and more environmentally friendly

Improvements in accuracy
Fewer keying errors or poor handwriting to decipher and bank details are checked in real time

Customer preference
Improving your customer service and company image means you receive a competitive advantage

Encourages more signups
Encourages more signups thereby creating additional revenue

Improved relationship
Establishes an immediate customer relationship. With telephone signup there is an opportunity to answer any questions
Considerations with Paperless DD
There are additional considerations when using PDD to be aware of:
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Paperless Direct Debit scripts (for telephone or face-to-face sign-up) must be approved in advance by the sponsoring bank.
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Confirmation of the arrangement must be sent to the Payer (and should include a copy of the Direct Debit Guarantee).
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As the Service User is not obtaining a signed Instruction they are required to check the identity of the Payer using a KYC (Know your Customer) process.
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The process relating to Indemnity Claims is affected. Service Users cannot counterclaim if they receive an Indemnity Claim for the reason “Payer disputes having given authority” because without the paper DDI (and signature) they are unable to prove authority.
Implementing Paperless Direct Debit
In order to set-up a Paperless Direct Debit sign-up system, you must:
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be live on AUDDIS. If not you will need to implement AUDDIS first
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contact your sponsoring bank to gain approval. Your Service User Number (SUN) will need to be paperless enabled. You will need to complete a paperless application form and undertake a basic test of your understanding of the rules and processes
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obtain approval of all internet screens, telephone scripts and other documentation from your sponsoring bank
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carry out a modulus check of the payers bank details at point of capture
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have a KYC (Know Your Customer) process in place.
Simple, practical support to introduce Paperless Direct Debit
Reduce time, errors and cost