Managing Your Membership Base More Easily
A very simple way of increasing your membership or donor base is to offer a payment method that suits the payer, such as Direct Debit.
When payers elect to pay by Direct Debit, they are giving you permission to directly take the funds out of their bank account. This provides the Payer/donor with an option that is simple and they don’t have to remember each month to make a payment by a specified date. For the organisation collecting the funds, it also means less follow up and paperwork compared to invoicing and also means no issues with managing of expiry dates as with Credit Cards.
Regular giving or instalment payments via Direct Debits or Credit Cards provide organisations with better cashflow analysis and predictability
For managing Direct Debits, there are two options available.
- Use a 3rd party that manages Direct Debits on your behalf
- Generate a file and upload this into your internet banking.
If using a 3rd party, this can often be much more expensive. However, they often manage all of the compliance side of then in ensuring your customer is using an authorised bank account and following up on bounced payments.
The option of uploading to internet banking is more cost effective, however, you will need to follow your banks requirements for proof of account ownership and sometimes banks can ask for a bond before providing the facility.
For finance people, they are often used to using this method as it is the similar to what they are already using for paying staff and suppliers.
In Australia, there is a standard used by all the banks for Direct Debits. This is called the Australian Banking Association format (aka ABA file format). You can see
In New Zealand, instead of a single standard, each of the banks has their own variation. You can see details at:
- ANZ info: http://www.anz.com/Documents/AU/corporate/clientfileformatsH2H.pdf
- BNZ: https://www.bnz.co.nz/static/www/docs/online-banking/ib4b-file-format-guide.pdf
- Westpac NZ: http://www.westpac.co.nz/assets/Business/Accounts-and-Online-Services/Business_Online_download_help.pdf
- ASB Bank: https://fnb.asb.co.nz/content/fnb_help/pdf/fnb_import_export_guide.pdf
Simplifying The Direct debit Process
Payments2Us has made Direct Debit easy for you. We enable:
- Payers to sign up online
- Provide workflows templates for emailing and verifying the account holder procedures
- Provide a way of generating the ABA or NZ file formats for uploading into the internet banking
- Provide a simple way to mark lines in error or complete the transactions in bulk
- All of the details and revenue is available for reporting and dashboard analytics
For more information, and to see the simple workflow, please checkout https://www.payments2us.com/157/simplify-direct-debits/.
To learn all the implementation details see the user manual at https://www.payments2us.com/user-manual-3/