VocaLink has started an audit and training
programme aimed at institutions that collect payments to deal with
Direct Debit issues such as exceptions and error messages.
On 15 April, VocaLink commenced a telesales
campaign and has also prepared a fact sheet for organisations on
Direct Debit issues and how to deal with them, VocaLink sales
support manager Ryan Jackson told Electronic Payments
International.
Go deeper with GlobalData
“We have had a consulting offering for a
couple of years now, we advice banks and large financial
institutions on all manner of collections and payments – whether
that is on Direct Debits, real-time payments, SWIFT or BACS
payments.
“We have now launched a Direct Debit audit and
training service. With this service, we help organisations in the
UK that use or are thinking of using Direct Debits and walk them
through their process. We combine that with managing information,”
he explained.
The service focuses on identifying lack
efficiency in Direct Debit mandates, Jackson said.
Normally, these lacks of efficiencies are down to how
organisations set up Direct Debits, how they reach customers and
catch their details and how companies process Direct Debit
transactions. More importantly, however, the lack of efficiencies
come from the way they deal, or not deal, with exceptions and error
messages, Jackson explained.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataVocaLink analyses past transaction information
to quantify failure values and errors and provides a proposal
report to improve and introduce suitable adjustments.
VocaLink takes into account the way a company have been using
the BACS and dataware software, security, previous audit trails and
accuracy.
Through this audit and training programme, it promised to reduce
“unpaid items and failed Direct Debit set ups”.
Central Knowledge
“We sit at the centre of the payments
infrastructure – so we have every detail of every transactions,
including failures and amendments, of every company that has ever
processed a Direct Debit transaction.
“A typical example is when a Direct Debit
transaction fails, the originator receives a message from us with
the reasons for the failure. Sometimes, originators do not react
appropriately to these messages.
“The public sector for instance has
historically not been particularly good at automating payments and
of course organisations want to limit the costs they spend trying
to collect revenues.
“So we go in and audit them for a few days,
and provide best practise training. We show them how their back
office can sufficiently deal with error messages. We also advise
them on customer service and how to communicate to customers.”
“We have their management information based on
real-life transactions. In about six months, we can then show them
how the improvements will have impacted the bottom line,” Jackson
said.
Jackson added that the exact Direct Debit
problem vary from sector to sector, but that “they tend to be
fairly generic, which is dealing with exceptions.”
Although Faster Payments is central to the
VocaLink infrastructure, Direct Debits are still linked to BACS and
based on a three day collection process, Jackson said.
As and when banks move to real-time debiting,
VocaLink will adopt the strategy eventually, he said and added:
“That is not in the strategy at the
moment.”
Consultancy services are a lucrative revenue
stream for VocaLink and although the company has withdrawn from
SEPA payments clearing and settlements, it is now using its
in-house knowledge to advise banks on their SEPA strategy, Jackson
revealed.
Jackson added that VocaLink “currently has
consultants on site with several of the major banks”.
