Paperless Direct Debit (PDD) Consultancy

Paperless Direct Debit (PDD) is a method of signing up new Direct Debit Payers without them having to fill out a paper Direct Debit Instruction. Instead, the Payer gives their authority remotely via one of the following methods:

Box Icon Telephone sign up via a telephone operator

Telephone sign up via a telephone operator

Box Icon Telephone keypad entry system

Telephone keypad entry system

Box Icon Internet sign using approved sign up screens

Internet sign using approved sign up screens

Box Icon Interactive TV using guided scripts

Interactive TV using guided scripts

Box Icon Face-to-face using a PDA, device or laptop

Face-to-face using a PDA, device or laptop

Advantages of Paperless Direct Debit

Subject to bank approval, PDD can be up and running very quickly. As an approach it offers organisations clear advantages:

Box Icon Quick turnaround

Quick turnaround

Quick turnaround time to collections. No waiting for a postal DDI

Box Icon 24/7 operation

24/7 operation

With internet signup, an organisation can gain new payers outside of business hours

Box Icon Less paperwork

Less paperwork

Less administration time; lower costs and more environmentally friendly

Box Icon Improvements in accuracy

Improvements in accuracy

Fewer keying errors or poor handwriting to decipher and bank details are checked in real time

Box Icon Customer preference

Customer preference

Improving your customer service and company image means you receive a competitive advantage

Box Icon Encourages more signups

Encourages more signups

Encourages more signups thereby creating additional revenue

Box Icon Improved relationship

Improved relationship

Establishes an immediate customer relationship. With telephone signup there is an opportunity to answer any questions

Box Icon Stress-free setup

Stress-free setup

Quick and simple to get up and running.

Considerations with Paperless DD

There are additional considerations when using PDD to be aware of:


  1. Paperless Direct Debit scripts (for telephone or face-to-face sign-up) must be approved in advance by the sponsoring bank.

  2. Confirmation of the arrangement must be sent to the Payer (and should include a copy of the Direct Debit Guarantee).

  3.  As the Service User is not obtaining a signed Instruction they are required to check the identity of the Payer using a KYC (Know your Customer) process.

  4. The process relating to Indemnity Claims is affected. Service Users cannot counterclaim if they receive an Indemnity Claim for the reason “Payer disputes having given authority” because without the paper DDI (and signature) they are unable to prove authority.

Implementing Paperless Direct Debit

In order to set-up a Paperless Direct Debit sign-up system, you must:


  1. be live on AUDDIS. If not you will need to implement AUDDIS first

  2. contact your sponsoring bank to gain approval. Your Service User Number (SUN) will need to be paperless enabled. You will need to complete a paperless application form and undertake a basic test of your understanding of the rules and processes

  3. obtain approval of all internet screens, telephone scripts and other documentation from your sponsoring bank

  4. carry out a modulus check of the payers bank details at point of capture

  5. have a KYC (Know Your Customer) process in place.

Simple, practical support to introduce Paperless Direct Debit

Reduce time, errors and cost