Can A Private Club Create It''s Own Direct Debit System?

[davidk65]

Members want to pay their annual subscriptions to our club by direct debit is such a thing possible or is it only for business use. If it was possible would would the bank, holding the club account, make a charge for such transactions?

[bednobs]

not sure, but wouldn't a standing order do?

[boxtops]

The only people who can really answer this for you is your bank - but a standing order from each member would resolve the problem. It's certainly not only for business use, any two accounts can have direct debits between them.

[whistonian]

I don't see why not,the club has an account and a member arranges a direct debit to pay into it. No different from me paying a monthly DD into my Grandchilds bank account.

[puzzlemaniac]

The best people to advise you are the Bank where your club account is maintained. You could be set up as a Direct Debit Originator, which allows you to collect the funds, however there are strict guidelines and rules to be followed both from becoming an originator, and the collection of funds. There may also be charges from your Bank for providing the service. You'd also need to think about Information Security as all your members will have to provide you with their bank account details and advise you each time those details changed. Standing Orders would be easier as you don't then need the bank details but you are reliant on the members setting the payments up correctly. So, your Bank is best placed to help you decide which option would better suit your club set up.

[dzug2]

Make sure that you and your members understand the difference between a direct debit and a standing order.

One your members would set up - it's between them and their bank. You just receive (and hope there is enough info to identify who had paid you)

The other the members authorise you to set up, and you need an arrangement with your bank to be able to do so. You originate the payments

I'm sure the bank would charge

[JuddC]

Yes, your club can take Direct Debit payments from customers. Direct Debits aren't just for big businesses these days. Small businesses, even sole traders can use them. Organisations such as private clubs, gyms, nurseries, SEO agencies, web-hosting companies... even milkmen and piano teachers! Almost anyone in business, really.

What you need to do is find a good Direct Debit Management Solution (check out AccessWallet.com for example - they're cloud-based which is perfect for smaller businesses) and they'll be able to set your Direct Debits up and start you getting paid. They will charge you a small percentage transaction fee, but it works out cheaper to take Direct Debit payments than credit or debit cards.

http://www.youtube.com/watch?v=gOOd3SLWheU