Having your business’ trading name on your customers’ bank statements has multiple advantages. It creates a better brand image, consolidates a good relationship with your customers, and reduces customer service time along with the receipt of indemnity claims. If you are collecting recurring payments by Direct Debit, and are using a Facilities Management (FM) collection service, you should always expect to have your name on your customers’ bank statements.
The quick answer is: confusion.
Imagine that a consumer is sitting at home in the evening after work going through their bank statements and all of a sudden they see ‘X’ name withdrawing a Direct Debit for ‘Z’ amount. You have no idea what ‘X’ name is, and you cannot recollect ever starting a Direct Debit with that company. The consumer’s immediate reaction would be to get in touch with their bank, cancel the Direct Debit and claim a refund under the indemnity claim process.
This has the potential of shattering a company’s brand image, and the customer relationship. In today’s world, if your customers are unhappy, it will be noticeable because they will voice their disappointment on social media.
Confusion among customers will lead to an increase in Customer Service queries for your team. Further to that, if payers decide to claim an indemnity, the business may be responsible to cover the cost of any bank charges and/or transaction charges.
Yes – there are actually two solutions. The first one is to apply for your own SUN from your bank. Not every company may be able to apply for the license because typically an annual turnover in excess of £1 million is needed. However, if the company fits the criteria that the bank requires, having your own SUN gives you more flexibility and allows you to have a fully branded solution. You will have no limit on the collection amount, the funds will reach your account on the same day and your company’s name will appear on your customers’ bank statements.
If you do not have a SUN, you can collect Direct Debit payments through an FCA regulated Facilities Management (FM) solution. Depending on the provider, you can still have your business’ name on your customers’ bank statements. We believe this should be a standard requirement. In order for this to take place, the provider has to operate ring-fenced client bank accounts for each company it collects Direct Debits for. This way, even though you do not have a SUN, your customers will still recognise the company they are paying.
Give your organisation the stability and freedom it needs to drive higher levels of growth by seamlessly automating your payment processes.