What is Paperless Direct Debit?
Paperless Direct Debit (PDD) is a service that allows organisations to collect by Direct Debit without their customers signing paper DDIs. PDD service users can sign customers up to pay by Direct Debit in the following ways:
- Telephone
- Internet
- Telephone keypad
- Face-to-face
- Interactive TV
A PDD service user lodges a DDI with a customer's bank electronically using AUDDIS, once it has collected the customer's details using one of the methods above. As a result, organisations that want to become PDD service users must be AUDDIS service users first.
How can Paperless Direct Debit help you?
Waiting for customers to return a DDI can be frustrating for service users. In the intervening time, customers can change their minds and sales can be lost. PDD offers service users an opportunity to capture details at the point of sale across a variety of sales channels. In addition, PDD service users:
- Eliminate paperwork and postage costs
PDD service users don't need to post DDIs to paying banks and don't need to dedicate staff to handling paper DDIs from customers.
- Reduce input errors and unpaid items
PDD service users can check a customer's bank details as they're filling them in. This ensures service users get the correct data from the start and reduces the number of unpaid items they're likely to get.
- Collect payments earlier
PDD service users don't have to wait for customers to complete and return DDIs, which means they can start collecting payments sooner. This can be as early as eight days from initial contact with a customer.
- Improve customer service
Customers of PDD service users find it easier to sign up for goods and services because they don't have to fill out and post DDIs. Signing up over the Internet for instance is quick and convenient.
How do you start using Paperless Direct Debit?
If you want to become a PDD service user, you'll need to:
- Be an AUDDIS service user and complete a separate application (from your bank) to become a PDD service user
- Pass your bank's technical and financial checks and execute a PDD indemnity
- Get your bank to approve all your PDD materials, such as telephone scripts, confirmation letters and Internet screens
- Train your staff to use PDD
- Set up ways to measure the quality of the service you're providing
- Implement ways to confirm PDD sign-ups, such as voice recording or Internet audit logs
- Establish a means to verify customers' addresses and account details (see fraud prevention)
If you want to know more about PDD, take one of our training courses or submit a question to one of our experts.
In addition, Direct Debit Limited has a range of payments-management systems that can help you get the most out of PDD. The company also has a fraud-prevention tool, DD-iD®, that helps protect PDD service users from identity fraud.
