Support and Frequently Asked Questions.
Why is “Interbacs” appearing on my bank statement?
We collect money on behalf of other companies via our Facilities Management Service. So it is more than likely that you have a Direct Debit set up with one of our clients. If you are still unsure then please don’t hesitate to give us a call.
What is the difference between the Bureau service and Facilities Management Service?
If you have your own Service User Number (SUN), or if you are able to obtain a sun from your sponsoring bank then the Bureau service is available to you. Your organisation should be registered for the Automated Direct Debit Instruction Service (AUDDIS), so that you can send Direct Debit Instructions (DDIs) to Bacs electronically.
For more information on our Bureau service, Click here.
If you are unable to obtain a SUN from your sponsoring bank, you do not have a SUN or you do not wish to obtain one, then Facilities Management (FM) is the option for your organisation. All money that is collected from your customers will be paid into a holding account which is operated by Interbacs.
For more information on our Facilities Management Services, Click here.
Who are Bacs?
Bacs is a not-for-profit, membership-based industry body and is owned by 16 of the leading banks and building societies in the UK, Europe and the USA.
Founded in 1968, Bacs has been maintaining the integrity of payment related services for over 40 years,
the company is responsible for the schemes behind the clearing and settlement of automated payments in the UK including Direct Debit and Bacs Direct Credit.
For more information, please visit the Bacs website by clicking here.
Why should I collect payments by Direct Debit?
Direct Debit is perfect for businesses who wish to collect variant amount of payments on regular intervals.
- Better control of the company’s Cash flow — Collecting Direct Debit rather than managing your invoices pro forma gives you more control of your cash flow allowing the company to concentrate on their speciality areas which brings more contribution to the bottom line.
- Reduced administration time/cost — Direct Debit reduces the administration time required to manage fee collection or service charges. For a company that is collecting large amount debtors using the traditional methods, switching to collecting such debtors through Direct Debit can lead to substantial reduction on administration time hence saving the company money.
- Preferred method of payment from consumers/businesses — Direct Debit is a perfect alternative to cheque payment, cash payment or on-line transfers. It is cheaper than cash and check, plus you, rather than your customers, are in control of the collection.
How do Standing Order payments differ from Direct Debit?
A standing order is an instruction a bank account holder gives to his or her bank to pay a set amount at regular intervals to another’s account. The instruction is sometimes known as a banker’s order.
A Direct Debit however is an arrangement made with a bank that allows a third party to debit money from a person’s account on agreed dates, these debits can be variable amounts and variable dates, provided the customer is notified in advance. The customer also has the reassurance that they have the Direct Debit Guarantee to protect them.
What is Paper Direct Debit
A Paper Direct Debit is when a customer physically fills in a Direct Debit Instruction (DDI) on paper and signs the form. This mandate is then transmitted electronically to Bacs (via AUDDIS), who then notify the relevant banks of the Direct Debit Instruction.
What is AUDDIS?
AUDDIS (Automated Direct Debit Instruction Service) enables organisations to send new Direct Debit Instructions to their customers’ bank electronically, instead of in paper format.
For more information, please click here visit the Bacs website.
What is Paperless Direct Debit?
A Paperless Direct Debit is when a Direct Debit Instruction is taken on-line or by telephone, with no need for a DDI (mandate) form to be signed.
The introduction of Paperless DD has helped the Direct Debit payment method to become even more convenient & popular, as well as helping businesses reduce their carbon footprint!
For more information on paperless DD’s, click here.
The Direct Debit Guarantee
This Guarantee is offered by all Banks and Building Societies that take part in the Direct Debit Scheme.
The efficiency and security of the Scheme is monitored and protected by your own Bank or Building Society
If the amounts to be paid or the payment dates change, Interbacs Ltd re xxxx will notify you xx working days in advance of your account being debited or as otherwise agreed.
If an error is made by Interbacs Ltd re xxxx or your Bank or Building Society, you are guaranteed a full and immediate refund from your branch of the amount paid.
You can cancel a Direct Debit at any time by writing to your Bank or Building Society. Please also send a copy of your letter to us.
How long does it take to be set up with a Direct Debit Payment facility?
It will take 6-8 weeks from completion of the client set up form for a client to be live with a Direct Debit Payment facility when Using the Paper Direct Debit system, the process also takes approximately 12 weeks for Paperless Direct Debit.
Once the Direct Debit Payment facility has been accepted and is live the client can then sign up customers by its specified method.
How do i know which solution is the best for my business?
Signing customers up via Direct Debit is easy and if you are unsure of what solution is right for you then click the link and answer a few simple questions so we can tailor a package just right for you.What solution is right for me
How do I send my collection files and new customer details to Interbacs?
We provide all clients with login details to a portal that enables collection files and new customer details to be sent securely to Interbacs. Guided support is also available by calling us on 08444 127 180, should you have any difficulties.
How long does it take for payments being debited from a customers’ account to reach my bank account?
Your customers must be given a minimum of 14 days notice for a payment to be collected. Information about the collection must be given to Interbacs at least three days prior to the collection date.
We then process the collection with Bacs and over the next 7 days, we receive information about rejected collections and collections correctly made.
Interbacs then produces a reconciliation statement for you, and pay the one payment into your company account, where funds are accessible 10 working days from the date of the collection.
What happens if a payment cannot be collected from a customer?
If a payment cannot be collected for any reason from a customer’s bank account, Interbacs will immediately inform you and details will be shown in the reconciliation report.
What happens if a customer demands payment back?
Once a request has been received from the customer’s bank for a refund, the payment must be made immediately.
The customer’s bank reimburses the customer first and then collects from Interbacs. When a request is received Interbacs will immediately inform your company, who in turn should arrange reimbursement to us of the refunded amount.
We recommend you should then contact the customer immediately to ascertain why a refund was requested.
What are the costs for Direct Debit?
Interbacs charge a:
- Client setup fee
- Customer setup fee
- Collection file charge
- Per transaction charge
Exact charges depend upon the client profile and transaction pattern, set up fees are payable only once and there are no additional annual or monthly administration charges.
Changes to the customer accounts incur a small charge to cover administration costs. Please contact Interbacs directly for a quote tailored for your company, 08444 127 180.
What does Transaction mean?
A transaction refers to each time a payment is collected by Direct Debit from a customer account.
What is a File Charge?
When your company sends a Collection File to Interbacs, a charge is made for processing the file.
A Collection file should contain a minimum of three fields:
- Customer reference
- Amount to be collected
- Date of collection
When is the Client Set up fee paid?
The Client set up fee is paid after completing the statement of work and other necessary contracts. This also commences the database set-up and Bacs application process for Direct Debit.
When is the customer set up and transaction fees paid?
We will collect these fees once customer payments have been collected and before payment is made to the client.
A breakdown of the fees is shown on the Interbacs reconciliation report.
If you have any more questions, regarding Direct Debits or the services we have to offer, please contact us, 08444 127 180 or alternatively email us, Sales@Interbacs.com