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Direct Debit: Pros and Cons

by davein

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Every organisation these days wants efficient methods to collect revenue. Direct Debit is one such method that was introduced by BACS and is popularly used by more than 50 percent of the population in the UK in order to pay their regular and ad-hoc bills. This method has always been popular among municipal corporations for making collection of bills and revenues like tax, telephone bills, loans, insurance premiums, subscriptions and so on easier. In recent years, businesses have realised the benefits that can be reaped from this method of collecting payments and are now offering their customers a chance to make payments directly. In the UK alone, more than five billion transactions are now being undertaken for making and collecting payments because of the ease and low cost of processing of this method.

 

With the increasing trend of automation in each and every field, businesses are now preferring to eliminate paper based transactions completely and relying on the internet for each and every task. Where the paper based transactions would need complete manual processing, Direct Debit and other electronic transactions will be done automatically. If you are under the perception that Direct Debits service is not flexible and need to follow a proper cycle every month, then it is better to make the proper research by consulting with companies like SmartDebit who also offer flexibility in payment plans where you are allowed to make payments with flexibility at any point of time, though it is important to maintain this clause in the contract before making it with the company.

 

Payers expect more flexibility in the payment dates, and by offering them the flexibility of dates along with the convenience of Direct Debit, you would just be doing yourself a favour. The ease that this method offers to the payers would encourage them to stay back for longer, being loyal with your company. This would result in successful client backgrounds and would also encourage new customers to join, seeing the satisfaction you have been offering to your previous customers.

 

Every method has its own pros and cons, and in spite of having so many advantages, Direct Debitdoes have certain disadvantages associated with it. These can be discussed in detail with your service provider, and only after complete personal satisfaction you will be given the option of choosing these services and make life easier. Elimination of inefficiencies and faster transfers of money are the most important advantages associated with the method of Direct Debit.

 

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