Direct Debit: Frequently asked questions from customers

5 min read

If you have recently started using a direct debit for business solution to regulate your payments, you will no doubt be eager to see the benefits.

But what is a direct debit platform without customers? If your clients are unfamiliar with direct debit, they may want to stick to paying by cash, cheque or card – three ways that won’t offer your business the same advantages as a subscription payment.

For example, without knowing precisely how much money will be brought in each month, it will be difficult to budget for the future. Recurring revenue software makes it possible to look at income with certainty, making for a much healthier cash flow report.

There are some great advantages for customers, too. First and foremost, subscribing to your service makes missed or late payments a thing of the past. Customers can set up their direct debit and forget about it, allowing them to concentrate on other goals while avoiding late fees.

So what else do customers need to know about their direct debit payments? If your customers have concerns or are on the fence, here are the answers to some common questions.

Is it safe?

Direct debit is a payment solution organised through a company and the customer’s bank, so in an age where credit card security is proving difficult to control, this payment method is much safer than most.

There is no need to enter card numbers, PINs, passwords or any other sensitive data, making it simpler to set up and easier to control.

For extra protection, good direct debit providers are regulated by the PCI Security Standards Council. The security body ensures payment methods are up to scratch and grades them on their overall effectiveness.

Your Ezidebit platform has a PCI data security standard Level 1 compliance rating – the highest level of protection – so your customers will be assured that their payments are being handled in the strictest confidence.

How easy is it to set up?

Many people are pushed for time and are therefore precious with it. A 30 second card payment once a week may not seem like much, but it soon adds up, especially when direct debit can be set up in a matter of minutes and requires no further action.

The process for signing a customer up for direct debit is simple. Customers start out by filling in a request form with their information, which is then logged into your direct debit platform. Payments will then begin on a day specified and agreed upon by both the business and customer Customers can then take their mind off payments, saving their time and yours.

Managing these payments is also done simply through the same direct debit platform. This means if changes need to be made, the customer is not left waiting for elongated processes to take place. It also means your business has total management and a broad overview of all your payments.

How often are payments made?

This is up to your company and can be tailored to meet your own bill payments. If rent and utilities are paid monthly, for example, your income can be put on the same schedule.

Alternatively, if you need to free up cash on a weekly or fortnightly basis, you may decide to start charging customers smaller amounts more often.

Making this decision as you set up your direct debit will give customers a good understanding of the costs. You can even tailor customer payments for times that suit them, if you wish.

Am I under contract?

Direct debit is a mutual agreement, not a contract. While it offers your customers a more manageable way to pay for bills, services and some products, there is no commitment to keep them tied down.

Your customers should feel encouraged and liberated by the flexibility of a payment method, not trapped by it, which should help to gain their loyalty and trust. With direct debit, this is easier to achieve.

Have a question about our products or services? Visit our FAQ's section or enquire now to talk to one of our payment specialists today!  From direct debit to BPAY and ecommerce, Ezidebit offers you tailored payment solutions for your business.