Today’s consumer landscape offers an abundance of choices and payment options. Regularly scheduled payments can be made manually or automatically through credit card accounts as well as through Bacs approved direct debits. Direct debits are withdrawn automatically from customer accounts on a day of their choosing, and are typically used for bill paying and other monthly expenditures. Credit card payments are also used in this manner, but do charge interest to the customers and are restricted by availability of credit. Direct debits are withdrawn directly from the customer’s banking account and therefore have no credit limit requirements, as long as the funds are available in their accounts.
Direct Debits
Direct debits are steadily gaining in popularity each year with millions of transactions processed. The automation and ease of use are appealing to most consumers who like to actively manage their household budgets and not have to manually pay their bills each month. Direct debits allow the merchant to automatically receive funds each month with no further action required by the customer. This option is safe and secure and worry-free. The payment schemes fall under the management of the Bacs bureau and must adhere to their high level of internet safety and security of customer data. These systems are well established and have been in use since 1968.
Security
All merchants who utilise direct debits payments must conform with Bacs protocols and bank standard security requirements. Additionally, there is the Direct Debit Guaranty which is a money back safeguard that protects consumers from fraudulent use of their accounts. All merchants must maintain a very high level of internet security and adhere to the banking regulations put forth by Bacs. There is constant monitoring and active management of compliance by merchants that instil a very high level of security for consumers. Banks must also meet regulations for internet security which affords customers with a two-sided safety net that protects their data and account details.
Ease of Use
Customers can access their merchant’s website and enter their banking credentials one time; from there everything about the process is automatic. In the age of hacking and multiple credit accounts, it is inconvenient to have to revisit each merchant’s site to re-enter details if a new credit card is issued, or if a consumer utilises a different credit card account from month to month.
Consumers decide the exact withdrawal amount as well as the date on which funds will be transferred to the merchant of their choosing; any necessary changes can be made simply by the customer through updating their details on the merchant’s website. Automated payments free up valuable time for consumers to focus on other more important matters in their lives. The security levels which Bacs payments adhere to give further peace of mind.
No Interest Fee or Usage Charges
Credit cards charge interest for each transaction that is not paid in full during the payment cycle. Managing credit card accounts can become an onerous process, especially when consumers utilise multiple accounts concurrently. If there is not enough credit available at the time of the payment it can be refused, causing the levying of fees from both the credit card company as well as the merchant.
Direct debits allow the customer to manage their payments and budget accordingly to meet their obligations without incurring additional fees or charges. Banking systems are in-use and well established to meet their needs with the necessary security in place.
Bacs direct debits are a streamlined and efficient manner to pay monthly bills with little hassle and no fees. Statements are clearly marked with all information each month from the customer’s banking institution and managing one’s payments becomes a much more simplified process. There are no credit levels to monitor or worry about interest fees. Merchants are required to safeguard all customer data and notify customers of any breaches in security.
With Bacs level safety requirements, customers can rest assured that their account details are safe and sound. Direct debits have been in use for decades and are safe and reliable, this option makes monthly bill payment simple and efficient. Customer who are considering utilising this option will be pleasantly surprised with the ease in which it can be implemented.
