Collecting Regular Payments: How Businesses Use DebaPay
Collecting regular payments from customers has been made easier in the past years thanks to automation. From membership fees to subscription services, retainer fees to utilities provision, technology has made recurring scheduled payments more viable to ensure a business can manage cash flow smoothly. Through regular payments, predicting business income becomes much easier leaving out the guesswork of when invoices get paid, with the added advantage of saving time chasing overdue payments and reconciling different payment methods.
Having clear income projection figures allows businesses to make better investment decisions and focus on mission-critical activities such as providing high quality customer service and excelling in their fields.
Benefits of Using SEPA Direct Debit
We want to share with you how DebaPay can help your business manage cash flow better through SEPA direct debit and regular payments. Setting up a SEPA direct debit for regular payments through DebaPay is a straightforward process. In a nutshell, the key benefits to businesses of using SEPA direct debit are:
simple to set up and use both single and regular payments
easier payment reconciliation with a full record of received payments
removing the need for cash, card and cheque payments
reduced delays in settlement of payments
reduced time chasing overdue invoices
lower transaction fees
payments arrive instantaneously on the agreed date without human intervention
To set up SEPA direct debit through DebaPay, the business customer first sends an email payment request to clients who will then fill out a simple authorisation form containing address and bank details using their mobile or PC. Once the details are entered and the request approved by the client, DebaPay ensures the payment collection data is sent to the customer’s bank for processing. DebaPay acts as a conduit between the bank and the business customer. The business customer will recruit its own clients onto the payment system, thereafter sending out requests for payment to their clients for approval as above. DebaPay is used for single and recurring payments and once a business is setup on the system they can start collecting payments via SEPA direct debit straight away.
This type of system is more cost-effective than using merchant services, which come with higher running costs.
SEPA direct debits can reduce general administration, freeing up resources for core business functions.
To set up recurring payments, a business will require a suitably enabled payment technology partner. The businesses featured in this blog have chosen DebaPay to collect recurring payments.
Started in 2004, Food PR & Communications is an award-winning PR and marketing agency dedicated to the food, drink and hospitality industry. It specialises in strategic communications, crisis management, PR campaigns, social media management and content creation for both Irish and international clients.
Olivia Collins is the founder of Food PR and won the Best SME Businesswoman for Galway at the Network Ireland Awards in 2019. She shares her experience of using DebaPay to collect client payments:
“DebaPay has made an enormous difference to how we work at Food PR. We spend more time on client accounts providing valuable service and less time on chasing payments. It provides value to our clients too who spend less time processing invoices and issuing cheques.The DebaPay customer care is excellent and always personable. I could not recommend highly enough.”
The PR industry is extremely fast-paced and competitive, with an ever-changing and pressurised environment that creates a need to adapt and craft the right communications on time and on brand. Using DebaPay to collect payments has enabled Food PR to invest more in nurturing client relationships and free up resources for strategic thinking. Minimising the time spent chasing people for payment means that the company can focus its efforts on key accounts and providing value activities. Overdue invoices and delayed payments can affect the delivery of services to clients due to limited resources, however by automating payment collection this is no longer an issue.
Founded in 1984, E&J Oil in Co. Donegal supplies heating oil and fuels to residential and commercial customers across Ireland.
Joan Kelly of E&J Oil shares her experience of DebaPay:
“We have been using Debapay for over 4 years for the collection of monthly payments from our Customers. We are extremely satisfied with the service provided. It is very reliable and user friendly. We would strongly recommend DebaPay to other businesses.”
Using DebaPay has simplified the way E&J Oil collects payments from clients. Before rolling out the DebaPay system, clients would pay for their fuel by cash on delivery or by card over the phone and they would need to be sent reminders if they were late with their payments. Having a combination of payment methods was not ideal for reconciliation. Handling large volumes of cash when collecting payments in person was an element of risk for drivers and the company. Cash payments to the drivers would also add unnecessary time to the deliveries’ schedule.
SEPA direct debit reduced both the effort of collecting payments and simplified making payments for customers over time. It also provided an efficient method of communication with customers who receive regular notifications on their payment agreements through the DebaPay system.
E&J Oil’s credit control team would sometimes be making numerous time-consuming calls to chase overdue payments, which would create high stress levels among staff. Some customers would simply forget to pay on the agreed deadline through no ill will.
Payment processing times and transaction fees would affect the bottom line. Overall, payment collection was labour-intensive and required comparatively more resources, which could have been better deployed to other areas of the business.
The industry sector E&J Oil operates in is linked to volatile oil prices, which is a factor outside the control of the business. Therefore, having one constant factor that you can control, i.e., knowing in advance when client payments are coming in, significantly improves cash flow management.
For E&J Oil’s clients having the convenience of paying for their fuel in one click simplifies how they settle their bills.
Why Choose DebaPay
DebaPay has a strong financial technology background built over more than 15 years. The team at DebaPay has combined experience and knowledge in sales, technology and finance.
We have been working hard to develop technology that is easy to use and that helps businesses run their processes more efficiently. We pride ourselves in listening to our customers and provide them with solutions that best suit their needs, so that they can deliver the best value to their clients.
We are also constantly keeping up to date with rules and regulations affecting the payments industry to ensure compliance. DebaPay online payment solutions ensure EU-wide standards are adhered to.
You can trust us to deliver excellence to your business. Contact us now and start your free trial.