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Direct Debit Mandate or Standing order

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  • 15-05-2012 2:49pm
    #1
    martyoo
    Closed Accounts Posts: 872 ✭✭✭


    Hi all,

    I am in the process of setting up a business which will require my clients to pay a fixed monthly fee into my bank account.

    What is the best way to go about this?


Comments

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    #2
    Peterdalkey
    Closed Accounts Posts: 2,091 ✭✭✭Peterdalkey


    The main difference is a DD largely controlled by you and a SO can be cancelled at any time by the buyer with no reference to you. It is much more difficult for the customer to stop a DD. Your rights and theirs will be largely dictated by the terms of the contract between both parties, so do your work. Gym membership and SKY contacts are very strong on DDs


    Cheers

    Peter


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    #3
    Tangled
    Registered Users Posts: 219 ✭✭Tangled


    Go talk to your bank about charges involved in setting up a direct debit system, that'll probably decide it for you.


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    #4
    MOH
    Registered Users Posts: 6,465 ✭✭✭MOH


    Peterdalkey wrote: »
    The main difference is a DD largely controlled by you and a SO can be cancelled at any time by the buyer with no reference to you. It is much more difficult for the customer to stop a DD. Your rights and theirs will be largely dictated by the terms of the contract between both parties, so do your work. Gym membership and SKY contacts are very strong on DDs


    Cheers

    Peter

    While the direct debit scheme seems to be widely abused in Ireland, under the IPSO terms the payer can cancel it in writing at any time. I wouldn't rely on the customer not being able to cancel it, although from the regular threads on Consumer Issues banks don't always make it as easy as they should.

    Main advantage of direct debit over standing order is that it deals with variable amounts, as dictated by the payee.

    There was a very similar thread on here a couple of weeks ago. Though if you're dealing with fixed amounts all the time I'd imagine a standing order would work out cheaper


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    #5
    DubTony
    Registered Users Posts: 3,269 ✭✭✭DubTony


    Tangled, just as a matter of interest, what sort of costs are involved in setting up DD systems?


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    #6
    mneylon
    Registered Users Posts: 7,739 ✭✭✭mneylon


    Getting DD on your own might be awkward depending on which bank you're dealing with.

    If you can't get it directly Sentenial offers a service that does it for you, though obviously they charge commission etc.,

    Blog | Tweets



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    #7
    Tangled
    Registered Users Posts: 219 ✭✭Tangled


    DubTony wrote: »
    Tangled, just as a matter of interest, what sort of costs are involved in setting up DD systems?

    I honestly can't remember the costs so don't want to throw figures out there but you use an intermediary company, there are monthly fees plus commissions etc. If you have a large amount of customers it will be cost effective, I know when I enquired about it it made absolutely no sense for us to do it, given the small number of customers we'd be using it for.

    If it's a set regular amount I'd get people to set up standing orders, at least while starting off to see how you go with it.

    In relation to cancelling DD's (from user viewpoint) - I've never had a problem doing this. You can do it from 365online with one click?


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