Considering Direct Debit as a means of collection?
Have you ever considered Direct Debit as a collection method for your customers? Or maybe you have thought about making payments via Bacs and want to know more information about the benefits?
Interbacs are starting to publish our own articles to help give you expert advice and step by step guides as to how you could start to benefits from Direct Debit collections.
In order for your company to operate a Bacs/Direct Debit service in-house, or to take advantage of a Bacs Approved Bureau service, you will need to obtain your own Service User Number (SUN) from your sponsoring bank.
Applying for a SUN from the bank can be a complicated process and very time consuming. Don’t let this put you off though! Here at Interbacs we can help you every step of the way in order to make it as hassle free as possible. Our expert team can guide you over the phone or via email for any questions you may have about the application process.
What is a Service User Number and what does it allow me to do?
A Service User Number is a unique 6 digit number identifier for organisations collecting or sending payments by Direct Debit. All communications with Bacs, the clearing service for Direct Debit, use this ID, and it is stored to create a record of the transaction. The SUN on the payment is used to identify the originator who is liable for the chargeback. Without an SUN your business is unable to send and receive Direct Debits directly into your account.
Having your own SUN comes with many benefits. These include your business having better cash flow and being trusted by customers for being a professional and reliable company. Companies are given many choices as to how they want to manage their Direct Debits, they can either manage the whole process themselves through Bacs approved software or outsource everything to a Bureau.
Am I eligible?
Before you spend valuable time applying for an SUN it might be beneficial for you to check if your business is eligible to receive an SUN.
1) Ensure that your company has a UK bank account with one of the sponsoring banks
2) Sticking to the scheme rules is crucial! You must be able to demonstrate to the bank that you have the ability to enforce the Direct Debit scheme rules. Alongside this you will need to minimise submission errors and uphold the reputation of the scheme.
3) Under the Direct Debit Guarantee you will need to have sufficient monetary reserves in order to make any refunds to customer. This protects your customers against payments made fraudulently or in error.
4) In relation to the previous statement, you must be able to indemnify your sponsor bank against any payments charged back under the Direct Debit Guarantee.
Our best advice would be to contact your relationship manager at your bank. It is them who hold the real answer as the whether you will be eligible to obtain an SUN.
Don’t worry though as here at Interbacs we are able to offer services to you even if you have not been presented with a SUN. Click to find out more about our Facilities Management Service.
How do I apply for an SUN?
In order to obtain an SUN you will need to speak to a sponsoring bank and apply. Every bank has a different application process but usually once the application is submitted then you should hear back from then anytime between 2-10 weeks.
If your application is successful, you can access a diverse range of Bacs and Direct Debit/Credit solutions.
Why not find out which one is best suited to your needs?What solution is right for me
As the process can be lengthy and complicated we offer advice to anyone who has any concerns about how the SUN could benefit them. If you have any questions or if you are still unsure about obtaining a SUN then please do not hesitate to get in touch with one of our Bacs trained staff here at our Manchester office.
Our next article will be outlining the main benefits of having a SUN and include more helpful information and advice on what is best for your company. In the meantime don’t hesitate to contact us if you have any questions.