Companies running the Direct Debit Scheme must comply fully with Bacs Service Rules, or risk incurring losses. The software and manpower needed for this are complex and costly. Therefore, banks will only issue Direct Debits to companies with whom they have a good trading history. And even then, registering can be a challenging, lengthy process.
Debit Direct will help you enjoy the benefits of Direct Debit legally without needing to satisfy the bank (or break it!).
We are generally happy to service new businesses provided you are not classed as high-risk. With each application, we will complete credit checks and KYC (Know Your Customer) checks on all companies, their directors and shareholders.
1. Advance Notice
The main direct debit regulations that you must know about are changes to the amount being taken and changes in frequency or date.
If you are not given the correct notice period, you can reclaim a full refund.
2. Immediate refunds
A claim for a full refund, or an “indemnity claim”, can be made from your bank for payments taken in error.
3. Instant Cancellations
You may cancel a direct debit any time before the payment is due for collection. If funds are still taken after cancellation, you are entitled to an immediate refund.
If your business is considered high-risk, we may require a security deposit, or hold onto a percentage of the funds collected for you.
For compliance and checking purposes, we will require certified copies of a passport and proof of address for each director and shareholder. We will also need a copy of the company bank statement to comply with Anti Money Laundering regulations.
This depends. As part of the application process, it will be necessary for you to provide us with certified documents. (Often obtaining these is the lengthiest part of the application.) Once received, we can usually have your account up and running within 2-3 working days.
No. Your customers can provide these details online using designated sign-up pages. Alternatively, they can give them to you over the phone.
You can set up recurring schedules or collect ad-hoc payments. Both can be done using the portal.
Thankfully (almost always) not! Most accounting software packages enable you to automatically create Direct Debit files, or export data in a format compatible with our software. We can assist you with the necessary template format.
If funds are returned unpaid (bounced), you will be notified within 24 hours of collection. You will also be given a clear explanation as to why this happened.
Your funds will clear in your account on the 5th working day after collection. We can send funds by same-day CHAPS transfer for a small fee.
In some situations, it may be necessary for us to hold funds for longer. In any event, you would be notified in advance of any such action.
Yes. We are authorised and regulated by the FCA (Financial Conduct Authority).
Your customers are guaranteed a full and immediate refund of any funds collected mistakenly or fraudulently from their account by Direct Debit.
This guarantee is unlimited in time or value.
In most cases, it is not possible to challenge an indemnity claim. Our service does not support any option to challenge or counter-claim.
Any disputes with your customer relating to funds that have been reclaimed must be carried out between yourselves and is beyond the scope of our service.