Direct Debit Collection

Cash flow management is vital for the growth of your business. You require easy-to-use transactional solutions that enable you to improve your customer collections conveniently and efficiently. Our Transactional solutions offer a flexible, holistic solution that removes the administrative burden from your business.

A direct debit is a financial transaction where your customer authorises you to collect money directly from their bank account through a direct debit mandate for the amount due on an agreed date. Direct debits are typically used for collection of recurring payments, such as credit card and utility bills. Amounts may vary from one period to the next.

Direct debit order collections are only available as local transactions, and only in the local domestic currency.

Direct Debit Collection features

Business Online’s direct debit collection solution provides you with the following capabilities:

Collect payments from customers

• Direct debits order collections are offered in three forms in different markets:

• Collect upfront – You have access to the funds upfront, prior to the successful completion of the collection transaction.An approved credit facility is required with this model.
• Value on success – You have access to the funds once the bank has successfully collected from the debtor.
• Fixed dated – You have access to the funds after the maturity date set on the debtor has been reached.

Set up direct debits

• Direct debit order collections are available for both ‘on-us’ (SBG) and ‘off-us’ (agent bank) transactions.
• Direct debit order collections can be made on the following basis: ‘one-to-one’, ‘one-to-many’, and ‘many-to-many’.
• The direct debit order collection functionality allows for the storing of debtor details online.
• Direct debit order collections can be created 30 days in advance, where they will be stored in the system and release for payment on the defined action date.
• Direct debit order collections are traceable back to the client, allowing for quick and easy reconciliation.
• Payments initiated on Business Online after the published cut-off times for a particular day will be automatically warehoused and released for processing on the next business day.
• To facilitate multiple (bulk) direct debit order collections, clients can upload payment batches online through a range of proprietary formats that can be audited and authorised.

FAQs

1. What documents do I need from my customer to set up a debit order collection?

You would need to comply with the necessary requirements specific to the country applicable e.g. a signed mandate from the debtor authorising you to collect funds from their account.

2. How do I set up a debit order collection on Business Online?

You can submit a collection through Business Online by creating the collection online, importing a Transaction file containing the debtor information you wish to collect from or using the file upload facility for a bulk file.

3. How many debit order collections can I set up on my account?

There are no restrictions applicable to the number of debit order collections loaded to the account you are collecting the funds too.

4. How will I know that my debit order has been successfully processed?

Every transaction on Business online has detailed transaction status feedback, which provides you with the status of the particular transaction. This includes unpaid reporting for debtor accounts not held with Standard/Stanbic Bank, which contains information on why the collection may have not been successful.