Organisations which accept payment by Direct Debit can either implement a process which requires the payee to sign an instruction form or they can implement a paperless Direct Debit process.
Paperless Direct Debit has a number of advantages for both businesses and consumers: it can be completed online or via phone in one interaction and it means that paperwork does not have to be posted out and then sent back before the Direct Debit can be initiated. This saves time, money (including often substantial postage costs) and improves customer service as consumers do not have to wait longer than necessary for Direct Debits to be set up and are not given additional paperwork to fill out and return.
In order to meet the requirements of the Bacs Paperless Direct Debit scheme organisations must check that the bank account data they are using is valid and confirm the ownership of the bank account the payment is to be made from.
Experian Bank Wizard Absolute can help you to comply with Direct Debit rules by both validating bank account data and confirming its ownership.
When you enter bank account data into Bank Wizard Absolute, algorithmic checks, known as modulus checks, make sure the bank account is valid. Once we are sure that a bank account number and sort code is valid a second check compares the bank account data to the records held by Experian to confirm that the owner of the bank account relates to the data you have been given.
View this webinar to hear from Bacs and Experian who discuss the risks of failing to verify bank account details, the impact on your customers and how you can meet the Direct Debit scheme requirements.