As one of the UK’s leading direct debit bureaus, we have drawn upon our experience and knowledge of the direct debit industry to create 10 top tips to help you choose the right the right bureau:
1. Ask the bureau about the resilience of their operations
Businesses across the UK experience around 30 minutes of downtime each month. What if your bureau’s server suffers technical difficulties and you can’t sign a new payer up to your service? Or if you offer online sign up facilities and a potential customer can’t access the service? Smart Debit has three separate fully active provisions, so should one fail, the others simply take over. In terms of downtime, we believe this system is close to zero.
2. Ask how the bureau will protect your sensitive data
Most bureaus will operate their system on a single server located in their office building. This leaves them vulnerable various security threats. At SmartDebit, we have 3 fully independent live systems, located in two geographically separate tier three data centres. Click here for more information on how we secure our client’s data.
3. Ensure the Bureau offers a simple low cost fee structure
Cash flow is vital to any organisation. If a direct debit bureaus’ fee structure involves a lot of ‘hidden costs’, then you might find yourself at the end of the month with higher outgoings than initially planned for.
4. Run a credit risk check on the Bureau
When entering an agreement with a bureau’s, you are entrusting them with your organisations cash flow. Should you choose a financially unstable direct debit bureau you run the risk of losing business and damaging your business reputation.
5. Ask the bureau if they have a contingency plan
It is absolutely imperative that the direct debit service you use has a fully functional and documented contingency plan. What would it mean to your organisation if your bureaus’ office had a fire? We regularly test our contingency to ensure our clients are not directly affected by any disasters at our end.
6. Check the bureaus’ compliances
Data security should be paramount when it comes to selecting a direct debit bureau. At SmartDebit, our compliances include Bacs Approved Bureau, ISO 27001 and we are registered under the Data Protection Act. Our standards also include PCI DSS Level 1.
7. Ask the Bureau for their Bacs inspection audit score
A commercial Direct Debit bureau who submits payment instructions on behalf of service users, is required to undergo audits to be approved by Bacs. There are five specified categories in which Bacs use to award or deny Approved Bureau status: Bureau Organisation and Financial Information, Physical Security, Computer Operations, Applications and System Support and Bacs Processing and Operations. SmartDebit scored top ratings of ‘Excellent’ in all five categories in our most recent Bacs inspection.
8. View an online demonstration of the service
One of the advantages of outsourcing your direct debit collections is the reduction in administrative efforts in both cost and time. Tasks such as adding new payers and editing information should be as easy and straightforward as possible. By simply requesting to view a demonstration of their service, you will be able to make a judgement on how simple or complex it may be. Click here to request a demonstration of our easy-to-use online Smart Admin Portal.
9. Check the amount they charge for indemnity claims
Many bureaus’ are charging overly inflated prices for indemnity claims. Many bureaus’ state these claims rarely occur. This is not the case – it depends entirely on the industry your organisation operates in. For guidance, SmartDebit charge indemnity claims at the same rate as a transaction fee.
10. Ensure they offer a fully branded solution
Some bureaus will offer a branded service, but in reality the bureau’s name will appear alongside your organisation name. A fully branded solution, which SmartDebit offers, means that only your organisation’s name will appear on any correspondents that you’re customers receive from you, including their bank statements. This stops customer cancellation through not recognising who the debit is being paid to and improves your organisation’s profile.