Paperless Direct Debit Process
Paperless Direct Debit enables service users to capture payers’ bank details over the telephone, on-line or any other means approved by your sponsor bank. Paperless Direct Debit is used alongside the traditional paper based signup.
The Paperless Direct Debit process is:
The bank details are entered online and passed into the Direct Debit Management Software (Label – e.g. Finance Application, CRM Software) or taken directly by phone and entered,as into the suggested platforms:-
- Bank details must be entered directly into the back office system holding the payer bank details (i.e. once at the ‘point of sale only’)
- Bank account validation must be done at the time of entry.
- Confirmation of the direct debit set-up is given to the payer (by letter or electronically), advising of the new Direct Debit set-up. This can also be combined with ‘advance notice’
- Else, separately, advance notice is sent to the payer, advising of the collection schedule
- The Paperless Direct Debit Instruction is lodged at the payer’s bank using AUDDIS
Due to the additional liability and risk associated with it, Paperless Direct Debit isn’t appropriate for all types of business and client bases. Paperless Direct Debit cannot be used if;
- Two signatures are required to authorise payment from an account
- A paper Direct Debit Instruction is requested by the payer
- Any Paperless Direct Debit Script question is not answered satisfactorily
The Paperless Direct Debt process will require you to make changes to your procedures and systems. Your Paperless Direct Debit processes must be compliant with the Scheme rules and signed off by your sponsor bank.
In the following pages you will learn about the different aspects of the Paperless Direct Debit signup process.