With the rise of cashless transactions, such as direct debit payments, equipping your business with the right payment technology to sustain these payment methods is vital to staying competitive. But where do you begin when you’re transitioning to direct debit payments? It’s important to have a plan in place whenever you’re employing a new payment method. Here are a few tips to get you on your way to accepting direct debit payments:
Before you convert to taking direct debit payments, it’s important to evaluate your accountancy practices for efficiency. Direct debit payments make it easy to collect recurring payments, especially when they’re set up automatically. However, if you’re not keeping accurate records of due dates or assessing risks factors, collecting on payments for memberships or other subscription-based services can cause an issue. Thus, make it a priority to have your accountancy assessed and make the necessary changes to make it efficient for handling direct debit payments.
Transitioning to direct debit payments means providing clear rules and expectations for your customers. You don’t want to leave them in the dark about how your collection process proceeds when a payment is late. Moreover, you want to make sure that you’re in compliance with financial regulations to avoid any unnecessary litigation. Thus, it’s vital to clarify expectations via terms and agreements so that both you and your customers are clear on what to expect before embarking in a direct debit payment.
You can’t retrieve payments from your customers every month unless you have a signed agreement, even if you have their bank account information. That’s why it’s important to get customers’ consent via a signed document. Accomplish this task by requesting their signature on an official agreement that authorizes the direct debit payment. You can even use business payment solutions that offer direct debit requests electronically to expedite the process.
Having the right payment technology to support direct debit payments is vital to a smooth transition process. It’s ideal to make a list of the services you need so that you can compare product offerings when shopping for payment technology that supports direct debit payment solutions. This can include payment technology that offers automated payments or support that shows you how to take direct debit payments. It’s ideal to pick modern payment solutions that can help you expedite the payment process without all the paperwork.
Transitioning to taking direct debit payments can be a smooth process if you have a game plan. Use best practices and modern technology to help simplify the process.