New Retry Process | Direct Debit
The Payments Council has announced a new ‘Retry’ process from 1st September 2014.
To quote from their Press Release:
“From Monday 1 September 2014 a retry process will be extended within the banking industry to help customers avoid late payment charges on their account. The process means that when a customer’s Standing Order, Direct Debit or Future-Dated Payment ‘bounces’ because of insufficient funds in the account, the payment will be processed again by their bank or building society, later the same day. This gives customers the opportunity to pay cleared funds into their account, which will allow the ‘retried’ payment to be successfully processed the second time around.”
Rapidata welcomes this news, as we not only see the benefit to the consumer in being given greater control of their payment management but also to the Direct Debit Service Users in helping to reduce the number of Direct Debit unpaid items reported back as ‘Refer to Payer’. In reducing the number of unpaids, Service Users stand to benefit from less administration and cost in following up or representing, and, of course, less bank charges.
Service Users to benefit from ‘Retry Process’
Scott Gray, Managing Director, Rapidata Services plc comments:
“What sounds like a small change in the banking process can have a big impact for many of our clients. Anything that helps reduce unpaid cancellation rates must be seen as positive news and I look forward to monitoring our clients’ unpaid ‘Refer to Payer’ rates after 1st September to see what impact this new change is having.”
The Payments Council’s full press release can be found here:
They have also provided a handy new guide that highlights what the process is, the benefits and some top tips. To download this Payments Council ‘Retry Process’ guide click here.