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Understanding the Direct Debit Guarantee

April 5, 2023

If you’re new to the world of Direct Debit, you may be wondering what the Direct Debit Guarantee is all about. In short, it’s a protection that offers peace of mind to both Service Users and Payers.

What is the Direct Debit Guarantee?

The Direct Debit Guarantee is a protection scheme that covers any errors in the payment of a Direct Debit. It offers a safety net to Payers, who can claim for any mistakes made in the amount or date of payment. The Guarantee covers all Direct Debits, and there is no time limit on making a claim.

Reassurance for the Payer

The Direct Debit Guarantee offers reassurance to Payers that they’re protected from any errors made in the payment of a Direct Debit. This includes errors made by the bank or building society, as well as the Service User collecting the Direct Debit. If an error is made, the Payer can request an immediate refund from their bank or building society. Usually, the refunded money will appear in the Payer’s account within two hours. The Guarantee also allows Payers to cancel a Direct Debit at any time.

Responsibilities

Under the Direct Debit Guarantee, responsibility for managing the scheme is shared between the Service User and the Payer’s bank or building society. Let’s take a closer look at the responsibilities of each party:


Banks/building societies


It is the Payer’s bank or building society that provides the Guarantee, not the Service User’s bank or building society. If a Payer requests a refund, their bank or building society will provide it and then claim the money back from the Service User.


Your responsibilities


Service Users have a number of responsibilities under the Direct Debit Guarantee:


  • Provide the Payer with a copy of the Direct Debit Guarantee before any Direct Debit payment is collected.
  • Provide the Guarantee in English, or in a bilingual Welsh format.
  • Use only the approved version of the Guarantee.

Reassurance for the Service User

While the Direct Debit Guarantee protects Payers from any errors in the payment of a Direct Debit, it’s important to note that this only relates to the Direct Debit itself. If a Payer has entered into a contract with an organisation for the receipt of goods or services, then this contract is still valid and is unaffected by the refund of the Direct Debit. Payment is still due, and the Service User is entitled to approach the Payer and request payment by other means. It’s also worth noting that any refund received by a Payer that they’re not entitled to must be paid back when the organisation requests it.

In summary

The Direct Debit Guarantee is a key reason why the Direct Debit scheme has been so successful. It offers reassurance to both Service Users and Payers, and ensures that any errors are quickly and easily resolved. By understanding the Direct Debit Guarantee, you can feel confident in using Direct Debit as a payment method for your business.

If you have any questions or need further support, please do not hesitate to contact us. We are here to help you navigate the technicalities of Direct Debit management.

Get in touch today

Why lotteries are a great way for hospices to raise money: 5 reasons

July 29, 2024
Providing quality hospice care requires money – lots of it. There are many ways to raise funds, but hospice lotteries stand out as a simple and effective solution. Lotteries offer an almost effortless way to secure regular income, which every hospice needs to provide the care they're passionate about. Let's look at the top reasons why your organisation should consider hospice lotteries when raising funds: 1. Build a steady income Donations can be an irregular source of income. While some donors give consistently, for others it may be more sporadic or in response to appeals. In this case, the only way to boost revenue is to wait for donations or run campaigns to encourage people to give. While donations may fluctuate, hospice lotteries can be more reliable. Well-advertised lotteries offering great prizes can raise a substantial amount of money. Additionally, lotteries where players can enter multiple draws with a recurring fee encourage regular participation. Use your lottery to create a reliable monthly income that enables you to provide quality care all year round. 2. Create an invested community Encouraging regular donations can be challenging. To inspire consistent giving, you need to raise awareness and build a community of donors who are as passionate as you. Hospice lotteries with great prizes can help you reach people who haven’t heard of your hospice. They provide an opportunity to promote your organisation and share the work you do. Passion is contagious; show people how passionate you are about quality hospice care to inspire them to support your organisation regularly. 3. Boost income to cover daily expenses Giving patients and their loved ones the care they deserve is not cheap. You need to hire specialists such as nurses, therapists, and grief counsellors and provide medication and meals. Hospice lotteries offer a hassle-free way to grow your income and cover your daily expenses. Because the cost of running a lottery is low, you can get a good return on investment and enough money to boost your income. Once set up, you can earn extra money with little effort. 4. Easy to set up and get started Because patient care is your focus, you need a quick and easy way to raise funds. Traditional fundraising methods, such as events and phone donation appeals, require time, hard work, and a big budget. Unlike traditional methods, hospice lotteries are a simple fundraising solution. You don't need much time or money to run a lottery. Additionally, it's easy for participants to sign up and play, meaning they don't need much convincing to participate. 5. Easy to get paid Money is what every hospice needs to give patients better care. The easier it is to collect money from lotteries, the sooner you can get the funds you need – and you can spend less time chasing payments and more time looking after those in your care. Hospices can use paperless Direct Debit to simplify payments. Players can set up automatic payments, and you can get paid on time – no follow up required. To save more time and resources, your organisation can use a Bacs approved bureau service , a solution where payments are managed for you, to make collection even easier. Provide the care you’re passionate about with hospice lotteries Make good patient care your focus with hospice lotteries – an easy way to bring in a reliable income, raise awareness, make extra money, and get paid. If you're eager to start but need guidance, visit the ClearDebit stand at the Hospice Lotteries Association (HLA) Conference 2024 at the Eastwood Hall in Nottingham from 10-12 September. Our team will be available to chat with you about ClearDebit's Direct Debit solutions and share how they make collecting lottery payments a breeze.

The 7 payments challenges sports clubs face… and how Direct Debit can help solve them

February 6, 2024
As a sports club, it’s essential that your off-field performance is exceptional. Whether you’re managing golfers booking tee times or football supporters renewing season cards, a smooth, easy and secure payments experience can make all the difference. In order to deliver that experience, however, a number of challenges must be overcome – and having a reliable and robust Direct Debit set up for your sports club can help. Here’s what you need to be thinking about. Security concerns Sports clubs deal with vast amounts of sensitive customer information – and because of that, payment processing systems must be secure and compliant to industry standards. Payment fraud Sports clubs are susceptible to payment fraud – for example, credit card fraud and unauthorised transactions. To avoid this, robust fraud detection and prevention measures are crucial to minimise and avoid fraudulent transactions, and help protect your reputation, too. Subscription and membership models Some sports clubs offer subscription-based services and memberships, meaning recurring payments, cancellations and renewals are a regular part of the day-to-day. Without a reliable and efficient management system in place, this can be time-consuming and challenging to manage. Refund and dispute resolutions Handling refunds and resolving payment disputes can also take up significant time for your back-office teams. Sports clubs need effective processes in place to efficiently manage any situations that may occur, as well as a deep understanding of customer rights. Having that knowledge of processes and entitlements significantly strengthens your organisation – as well as ensuring your teams can operate as efficiently as possible. Regulatory compliance Sports clubs must follow local and international regulations governing payments and data protection. By staying compliant with laws and regulatory bodies, you can avoid legal issues and maintain trust with your fan and customer bases. User experience Smooth and easy payment processes are crucial for fan satisfaction. Lengthy processes can lead to customers abandoning their shopping carts, so by prioritising a positive online purchase experience, you can help keep fans happy. Integration with ticket systems Integrating payment systems seamlessly with ticketing can be difficult, however, it’s an essential part of delivering that stellar online experience. By ensuring your payments system and ticketing system are fully in sync, you have clear, real-time visibility on income, making reconciliation and forecasting simple.  Ten must-have features your sports club Direct Debit provider must have Security and compliance that meet local and international regulations Reliable and stable payment platforms/processes User-friendly interface The ability to integrate with existing software Customisation and flexibility Clear and transparent pricing Active customer support Effective reporting and analysis tools Final thoughts on choosing a Direct Debit provider for sports clubs Addressing the challenges outlined above is essential in order to meet the expectations of your fans and customers, who expect their club to have the highest of standards. A secure and reliable payment processing system, robust cybersecurity measures and commitment to providing a positive experience for fans throughout the transaction process is a fundamental part of meeting those expectations. By choosing your sports team’s DIrect Debit partner carefully, you can seriously boost your off-field game.
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