Feb 06, 2012

What are Paperless Direct Debits?

Paperless Direct Debit (PDD) is a service that allows an organisation to collect their payments by Direct Debit without customers having to fill out and sign paper mandates. With our Paperless Direct Debit service, organisations can sign their customers up to pay by Direct Debit in the following ways:

– Over the telephone

A short script is read out to your payer. The payer’s name, address and bank details are taken and keyed in to our online SmartDebit Admin portal. The bank details are confirmed in real time and an email confirmation is sent to the payer.

– Internet – through your website

The payer fills in a single page data entry form on your website and ticks a box to say they want to set up a Direct Debit. They then fill in their name, address and bank details on a single page. Find out more about online Direct Debits.

– Face-to-face

Details are taken verbally using a script and then entered in to our SmartDebit Admin Portal from your pc, laptop, smartphone or tablet.

Once the customer’s details have been collected and imported into our SmartDebit Admin portal using one of the methods above, a Direct Debit Instruction (DDI) is lodged with the customer’s bank electronically using AUDDIS (Automated Direct Debit Instruction Service).

How can Paperless Direct Debit help you?

Waiting for customers to return a paper mandate can be very frustrating. During that period, customers can change their mind and sales will be lost. Offering PDD allows your organisation the opportunity to capture payer details at the point of sale across a variety of channels.

A few benefits of our PDD service:

– Eliminate paperwork and postage costs

No need to dedicate staff to handling paper mandates from customers or to post DDIs to paying banks.

– Reduce input errors and unpaids

Our SmartDebit Admin portal validates your customers’ bank details in real time which ensures you get the correct data from the beginning and significantly reduces the number of unpaid debits you are likely to get if using a paper mandate service.

– Collect your payments earlier

With our PDD service, organisations don’t have to wait for customers to complete and return DDIs, which means you can start collecting payments sooner.

– Improved customer service

By offering a PDD service, customers find it a lot easier to sign up for services due to not having to fill out and post paper mandates back to you. Signing up online is instant and convenient for the customer.

Paperless Direct Debiting without SmartDebit…

If you want to offer a PDD service to your customers, without using a direct debit bureau like ourselves, you will need to do the following:

  1. Be an AUDDIS service user and complete a separate application (from your bank) to become a PDD provider
  2. Pass your bank’s technical and financial checks and execute a PDD indemnity
  3. Get your bank to approve all your PDD materials, such as telephone scripts, confirmation letters and internet screens
  4. Train your staff to use PDD
  5. Set up ways to measure the quality of service you are providing
  6. Implement ways to confirm PDD sign-ups, such as internet audit logs
  7. Establish a means to verify customers’ addresses and account details
  8. Successfully pass the banks paperless ‘e’ test

Paperless Direct Debiting through SmartDebit…

  1. Simply sign our agreement and we will take care of the rest.


For more advice on Paperless Direct Debits, please call our sales team

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