Direct Debit payments are a quick, easy and popular- for over 50% of the UK bill paying population, a Direct Debit solution is their preferred payment method.
Despite their popularity, there still seem to be a few myths and misconceptions around Direct Debits, so we thought it would be interesting to highlight - and disprove - the 5 most common myths...
Myth #1 - Direct Debits are the same as Standing Orders
This product differ from Standing Orders in a number of ways. A Standing Order is for a fixed amount on a fixed date whereas this product are completely flexible, and can be for variable dates and amounts.
A Standing Order is originated (pushed) from the payer's bank, whereas a product is originated (pulled) from the organization collecting the money. Perhaps the most important fact for customers is that the payments are fully protected by the product Guarantee. A Standing Order offers no such protection.
Myth #2 - Direct Debit software is expensive
Many businesses are under the mistaken impression that the software needed to collect this payments is expensive.
The truth is quite the opposite, particularly if your solution is Cloud-based. You don't have to purchase any expensive in-house software, and you won't have to pay for installation or upgrades.
Myth #3 - Direct Debit software is difficult to install
With Cloud-based Management software, you don't need to waste any time installing or configuring hardware. The Cloud is simply remote access computing, with all the hardware and software needed sitting in a secure, external location - so you don't actually have to install anything. Your provider should take care of all that for you.
Myth #4 - Direct Debit software means lots of costly upgrades
A good Cloud-based solution will operate on a modular basis, so you only pay for what you use and can control your resources, with the ability to scale up or down on demand. For example, you shouldn't have to pay more if you want to add more payers - your annual subscription fee should cover additional payers, and allow your business to grow without any additional costs.
Myth #5 - Setting up Direct Debit Payments is time consuming
A popular misconception is that all customers have to sign a paper this Instruction, meaning that businesses have to arrange a face-to-face meeting or wait for the instruction to arrive in the post.
The Truth? Paperless the product instructions are a common sign-up method - and are much quicker than a paper approach. Instructions can be completed via the telephone, online or face-to-face.