People started using debit cards and credit cards instead of checks on account of the availability of various innovations taking place through information technology. At present transfer of funds through cash and check is almost out of place. However, during recent times, direct debit services are becoming popular on account of the attractive features available in the system. An individual or organization who is willing to effect transfer of funds on a regular basis towards payment of various utility services namely telephone bills, electricity charges, water and sewerage charges, annual maintenance charges etc. can engage the services of direct debit. An organization or individual who is willing to avail the services of direct debit should sponsor his banker for the purpose and necessary authorization has to be executed in favor direct debit service provider. In fact banks nowadays started encouraging direct debit services on account of lesser time involved and less cost involved. However, the bank sponsored should be one among the sixteen who are members of Bacs.
What do you mean by Bacs?
In order to avail Direct Debit Bacs services, the member banks should have trained officials who had undergone the vigorous training through the trainers from British Accreditation Council. In case the organizations which are willing to handle the Direct Debit services themselves they should train their employees with Bacs.
What should be avoided while availing the services?
While opting for availing the Direct Debits Bacs services the individual or organization should consider various points before coming to a conclusion about the best solutions which are suitable for the organization. This depends upon the volume of collections handled; frequency of collections; the revenue generated through Direct Debits and the available infrastructure.
In the case of organizations which are having lesser number of people, instead of handling the work on their own, it is wiser for them to outsource the collections to an agency.
It has to be decided as to whether the Direct Debit services should be considered as an additional payment collection venture or as a replacement for the existing collection system. Direct Debit services are found to be the best one on account of the facts that it reduces various administrative steps involved in other options and a number of various kinds of avenues through which a customer could pay.
How to empower the employees?
The service user guide should be available to the employees. The organization should ensure that the employees are aware of the contents of the user guide thoroughly so that they handle the transactions without any error.
Engaging an employee who is not conversant with the rules and regulations of Direct Debit services should be avoided.
The employees and organizations are able to update the information in regard to the latest rules and regulations of Direct Debit services by getting themselves trained in Bacs accredited Direct Debit training modules.
It has to be noted that when compared to the cost involved in collecting the checks through the banks, the cost involved in transferring the funds through Direct Debit services is found to be very less.