One of the reasons why Direct Debit is so popular is that they provide a number of safeguards for payers, which are covered in the Direct Debit Guarantee.
The Direct Debit Guarantee provides assurance to the payer that any monies taken in error by the Service User (yourselves) or the paying bank will be immediately refunds by the payer's bank. The payer must be sent an advance notice (which can be sent on your behalf by SmartDebit) if there are any changes to amount, due date or frequency and advises them that they are able to cancel a Direct Debit at any time by contacting their bank. The wording o Direct Debit at any time by contacting their bank. Tn a Direct Debit Guarantee must not be amended in any way.
- Your lead time must be depicted on the guarantee, highlighting the number of days advance notice will be given to the payer in respect of payments to be collected under the DDI.
- If you are signing up your payer over the phone you can follow a script which SmartDebit provide you upon setup which covers the entirety of the Guarantee. (We would advise that you keep a recording of these conversations to protect yourself against indemnity claims.)
How does it look?
Bacs stipulate that all Direct Debit Instructions must adhere to the prescribed format, agreed upon by your sponsor (us). These can appear as below:
- Indemnity Claims Explained (DDICA)
- What information do I need to capture when signing up a payer?
- How do I add a company logo to a Direct Debit Instruction?