Full service Direct Debit in the UK : how does it work ?

Every month your members are automatically debited and you do not have anything to do. However, it is important for you to know the automated process of sending your Direct Debits to the bank,  validating your mandates at the reception of your Direct Debit rejections. Then you will be able to anticipate at most what appears in Resamania as well as the amounts received every month.

If you need any help about when and how to configure memberships, please read this article.

drapeau_vert.pngSTEP 1 : THE DIRECT DEBIT MANDATE IS ASSIGNED ON THE MEMBER FILE, AND THEN?

Once a mandate has been created on the member file (online or from the backoffice) we will automatically submit the details to the bank for checking. Thanks to our automated process, the bank will check that either the mandate is valid and a new Direct Debit instruction has been created, or the bank will inform us that the bank details are not valid. It will take 10 days for the mandate to be validated. While waiting for its validation, the member can not be debited. If the mandate is not validated yet, we won't create a missing mandate alert.

Warning

It will take about ten days for the Direct Debit mandate to be validated. So be careful not to put an instalment on this period otherwise the member could not be debited. If a Direct Debit occurs though the mandate is not validated or is not on the member file yet, the member will have to settle their payment through the member area, the contact centre or the club.

What happens if the mandate cannot be validated ?

In this case, our automated process will deactivate the current mandate. The members will automatically receive an email and/or an SMS when this occurs thanks to the Smartmessaging campaign 'Inform the client about a missing Direct Debit mandate'. The instructions contained in these automated communications inform the member that her/his details are incorrect and that s/he has to contact our contact centre to rectify them.

drapeau_vert.pngSTEP 2 - YOUR DIRECT DEBIT FILE IS AUTOMATICALLY SENT TO THE BANK

6 days prior to the Direct Debit day given to the implementation, your file will be sent to the bank. 

What happens if the member has no mandate, but should be debited ?

The member will have a 'missing mandate' tag on her/his member file and could not be debited. A debt will be created on the member file the day when the Direct Debit should have occurred. 

On the Direct Debit day, you will see the statistics concerning the batch appear in the Direct Debits dashboard.

Warning

Six days prior to the expected Direct Debit day, the scheduled instalments should not be modified (suspend, cancel, etc). In all cases, information about the Direct Debits are already sent so the members will be debited.

drapeau_vert.pngSTEP 3 - REJECTIONS ARE INTEGRATED IN RESAMANIA

1 day after the Direct Debit day, the Direct Debit rejections are integrated in Resamania.

  • In case of rejection, the Direct Debit concerned will be resubmitted 10 days later.
  • If the Direct Debit still fails, we will resubmit it again.
  • At the third attempt, if the Direct Debit still fails, the membership will be automatically cancelled.

After the resubmission attempts, if the member's payment fails again, s/he can get in touch with the contact centre, the club or pay online all unpaid debts.

At each rejection, automated campaigns will be launched and sent to the members concerned.

These campaigns can be emails or SMS sent to the members according to what you have subscribed to. In this communication, instructions are provided to the members about how to pay their incidents. The members have to get in touch with our contact centre to deal with these rejections.

Please find below the summary pattern of the steps to generate a batch and receive the rejections.

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drapeau_vert.pngSTEP 4 - WHAT HAPPENS ON RESAMANIA ?

  • Early invoices are created 15 days before the start of invoicing period. 

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  • So, dues invoices are created 2 days before the finalization of your Direct Debit file (collection day minus 2 days, and it's always in the Direct Debit month). The invoice is always validated during the collection month. At this moment, invoices and payments are visible in the reports and in the financial tab.

  • Once the rejection are integrated in Resamania, there are incidents on the payments and those need to be regularized from the financial tab directly at the gym or thanks to resubmission system.
  • If you have rejections fees, you will see invoices on the member file. Members can pay it directly at the gym. If the member doesn't pay, it will be collected in the next Direct Debit file.

drapeau_vert.pngSTEP 5 - TO ANALYSE YOUR FIGURES, WHICH EXPORTS SHOULD YOU USE ?

To analyse your Direct Debit collection and payment, you can use the following reports available in the Management exports. To know how to make a report export, you can check this article.

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  • Unpaid invoices and unused credit notes : only to be used for a late payment. Late payment is a debt created by an invoice by manual creation that has not received any payment. Missing mandates are considered late payments as we could send the invoice to the bank. This is a dynamic report that is to say, updates take place as the member file is updated.
  • Sampling Releases will show you the Direct Debit rejections. This report is used for monthly rejections and provides a snapshot of that month's Direct Debit collection. This is a snapshot in time and not dynamically updated.
  • Invoice, credit notes and payment to be processed. This export contains all the financial items you need to process. More specifically, it groups a file with all the invoices in classes, late or subject to an incident payment to be settled and a file listing all the payments subject to an incident to be settled and all payments remaining to be used. With the DetailPaiement&RemboursementATraiter you can see who rejected their Direct Debit and has a balance outstanding. When filtering column I by Incident, Incident means we submitted to the bank for Direct Debit collection and got a rejection back for the following reason codes : 9-presentation overdue/1-instruction cancelled/4-Advance notice disputed unpaid DD/7-Amount differs/8-Amount not due yet. This is a dynamic report and can be used for monthly rejections (and overpayment). It provides clients with a snapshot of that month's Direct Debit collection. This is a snapshot in time and not dynamically updated.
  • List of all members :  This report provides you a list of members in Resamania regardless of their status.
  • Active Members : This list report presents  all members with packs already started and not completed at the date of the export (even if they contain no units) and active memberships already started and which are not terminated (or whose termination date is in the future). It is a summary report that provides a count of members on a specific membership type.
  • Members without warrant: This export outputs members with member status who do not have a mandate and have a membership that is not completed OR who have an unpaid and due Direct Debit due date. It is possible to extract this export for automatic debit and manual debit. Members' emails are contained in the export. It is not clear if they were signed electronically.
  • Terminations: This report provides a list of all membership terminations between two dates, regardless of their status (cancelled or effective). If a membership has been terminated several times, it will appear several times in the export.

 

 
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