Direct Debit Services helps organizations automate recurring payments from their clients. These are extensively used by non-profits for collecting regular gifts, by utility and telecom companies to collect monthly bill payments, by non-bank lenders to collect loan repayments, by membership based organizations to collect monthly fees etc. Direct Debit Services are easy to set-up, require no help from an organizations IT department, are fully secure and significantly cut down an organizations administration costs.

1. DIRECT DEBIT SERVICES
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2. INTRODUCTION
 First used in Germany in early 1960s
 Alastair Hanton of UK is widely known as the inventor of Direct Debits
 Born out of the need of Uniliver to collect regular payments from thousands of its small ice cream
retailers
Direct Debit Services - Flo2Cash Limited

3. TYPES
 Collection Authorization - The payer authorizes the payee to debit his/her account for a fixed
amount of any future invoices. This type is common in consumer to business transactions like
paying utility or phone bills.
 Debiting Order - The payer authorizes his or her bank to honor direct debit requests from a
name payee. This type is more common in business to business customers
Direct Debit Services - Flo2Cash Limited

4. BENEFITS FOR BUSINESS
 Low Processing Costs - Taking into account all cost elements involved in processing a recurring
payment through conventional means, direct debits service costs much cheaper.
 Short Processing times - Automating the payment process, significantly reduces the time it takes
a business/non-profit to receive the payment.
 Simplicity - Once set up, direct debits recurring payments do not require any management either
by the business or its customer.
Direct Debit Services - Flo2Cash Limited

5. BENEFITS FOR BUSINESS
 Security - Direct debits are more secure form of payment compared to payments made through
cash or cheques
 Low Customer Administration time - It significantly reduces both the time and energy spent in
calling, arranging and chasing late payments and the greatest benefit of all is the improvement in
cash flows. Because you get paid on time you can better manage the expenses of your business.
Direct Debit Services - Flo2Cash Limited

6. BENEFITS FOR CHARITIES
 Donors that opt for Direct Debits as a payment method support Charities for a longer period as
compared to those who opt for Credit Card payment.
 Direct Debits transactions have a much lower failure rate, less than 1 percent compared to 7
percent for credit card transactions. This translates to more funds for charities.
 In the long run, the transaction fees for direct debits is much lower than credit card transactions
resulting in savings for charities.
Direct Debit Services - Flo2Cash Limited

7. BENEFITS FOR CHARITIES
 Given a choice, four out five donors choose direct debits as a gifting option owing to the
convenience it offers.
 It allows charities to get more out of their advertising budget by focusing on acquiring new
donors as recurring donors don't need to be targeted.
 By giving donors the option to gift small value regular donations charities not only reach out to a
new segment of donors but also increase the fund value per donor per year.
 Direct Debits recurring payments ensure regular, predictable cash flows enabling charities to
better manage fixed and variable expenses.
Direct Debit Services - Flo2Cash Limited

8. KEY PARTICIPANTS
 Originator: The business that provides goods/services or a not-for-profit organization that
appeals for gifts.
 Sponsoring Bank: The bank where the originator maintains its account.
 Payer: The customer who agrees to pay the bills using direct debit or the donor who pledges a
gift to the not-for-profit.
 Paying Bank: The bank holding the payer's account which is to be debited.
Direct Debit Services - Flo2Cash Limited

9. THE WORKFLOW
 The originator sends an invitation to the payer, requesting him to make future payments using
direct debit.
 The payer accepts invitation and responds by filling in a DD mandate form for direct debit
authorization and it sends it to his bank, the payer's bank
 The Payer's bank, validates the DD mandate from and sends it to the Sponsoring or the
Originator's bank. This completes the set-up, an intimation of which is sent to the Originator.
Direct Debit Services - Flo2Cash Limited

10. THE WORKFLOW
 The originator starts submitting direct debits to its bank, the sponsoring bank.
 The sponsor bank forwards DD instruction to the payer's bank
 The bill amount is debited from the payer's account and credited to the originator's account
Direct Debit Services - Flo2Cash Limited

11. DIRECT DEBIT GUARANTEE
Every country has its own rules and regulations governing direct debits so as to protect the
consumers. Some of the basic guarantees provided are as follows
 Change notice - Any changes to the amount, date or frequency of payment needs to be
communicated to the customers in advance, 10 days is the most commonly used time frame.
 Refunds - The customer gets a full refund from the bank for payment taken in error
 Cancellations - The customer can cancel direct debit payment at any time before the due date.
He/She is entitled to a full refund in case payment is withdrawn after cancellation.
Direct Debit Services - Flo2Cash Limited

12. MANAGEMENT
A Direct Debit Service provider makes available its users with an online dashboard or console where
they can login to access management and reporting tools. Some of the basic features offered are.
 Searching Mandates - A direct debit mandate is an authorization from your customer to collect
future payments. From time to time you may need to check the mandate or revoke it , this
requires searching it first. With this feature you can easily search the mandates database by using
mandate ID, the customer name, email, the payment reference or the customer's bank account
details.
 Updating Payment Plans - It allows one to change the direct debit amount, frequency or period
of direct debits payment schedule of a particular client.
Direct Debit Services - Flo2Cash Limited

13. MANAGEMENT
 Manage Failed Payments - One can group together failed transactions and then reattempt the
payments using this feature.
 Batch Payments Processing - Used for carrying out batch operations e.g. mandate imports so as
to process grouped payments.
 Reporting - One can see all historical direct debit transactions within a particular date range and
can apply filters to narrow down results. Some of the filters include transaction status and
dishonor reasons.
Direct Debit Services - Flo2Cash Limited

14. MANAGEMENT
 Transaction Search - Historical transactions can be searched using date range, plan ID or account
name.
 Manage Profiles and Users - The admin can update his profile, create or delete users, assign roles
and can make selective features available for different users.
Direct Debit Services - Flo2Cash Limited

15. FLO2CASH DIRECT DEBIT SERVICES
 Established in 2003
 Fully secure PCI-DSS compliant environment
 Highly skilled team
 No IT input required from clients
 Every transaction as secure as a bank transaction
 Also available as a complete white label solution
 Thousands of satisfied customers
Direct Debit Services - Flo2Cash Limited

16. FLO2CASH DIRECT DEBIT SERVICES
 Flo2Cash setups a direct debits service for you so that your customers can sign direct debits on
phone, online, email or on paper, after which you can send an invoice and debit their bank
account on payment due date. Moreover, the set-up requires no help from either your IT team or
the bank. Its smart analytics and dashboard lets you see the status of transactions in real time
and built-in dishonor management system follows up on dishonor payments. Also, all
transactions are secure and approved by the payment authority.
Direct Debit Services - Flo2Cash Limited

17. THANKS !
 Call 1800 356 222 for a no-obligation demo or write to us on support@flo2cash.com
 For more information, please visit our website www.flo2cash.com
Direct Debit Services - Flo2Cash Limited