Chaser, the global accounts receivables SaaS platform and credit control service provider launched direct debit functionality, allowing users to get predictable payments from their customers and follow up with automated, personalised emails and texts when payments fail.
Many businesses believe that direct debit payments will give them reasonable certainty around payment collection, which makes their internal forecasting easier and allows customers to smooth out the payment of their services evenly throughout the year.
However, direct debits can fail. This can occur for many reasons, including invalid bank details and bank accounts being closed, not enough money in the payer’s account, card details not being up to date due to them having expired, been lost, or stolen.
Failed direct debits pose a significant cost to businesses, with every direct debit failure costing businesses an estimated £50 to repair (GlobalTreasurer). Failed direct debits don’t only cost businesses financially – they also present significant time costs as 78% of finance teams admit they spend over 10 minutes rectifying each failed direct debit.
Direct debit options in the Chaser application mean users can improve the likelihood of getting paid on their invoice due date, and when payments fail, they will be automatically followed up with Chaser’s receivables automation technology. Customers will receive automatic, personalised reminders via email and SMS to pay via their Chaser payment portal, or to update their direct debit banking details.
Today, 43% of finance teams spend over 4 hours every month manually fixing problems with direct debits. However, by utilising direct debit options alongside accounts receivables automation, finance teams can now benefit from predictable direct debit payments and eliminate the need for internal resource costs when payments fail.
After recently reaching the milestone of helping users chase and recover $30 billion in late payments, direct debit is the next step for Chaser in providing businesses worldwide with everything they need to reduce late payments and improve cash flow.