Moving Direct Debits To A New Account

Direct Debits are very quickly becoming the most desirable method of payment for many utility and service providers in the UK with 73% of satellite bills, 53% of gas and 50% of electricity bills being paid for in this way. This is not just because many service or utility providers are demanding automated payments over the traditional cash or cheque; the majority of Britons prefer to use Direct Debit:

  1. 33 million people prefer Direct Debit over other methods of payment
  2. 72% of British adults have at least one Direct Debit commitment
  3. 3.32 billion Direct Debits were processed during 2011
  4. 67% of all regular personal and household commitments are paid for via Direct Debiting

Should you wish to change your bank accounts, moving zour Direct Debits to your new account has never been easier. To move your existing Direct Debits all you need to do is to tell your new bank/building society that you wish to do so and they will make all the necessary arrangements. Your new bank will tell you how the process works, who is responsible for each step and how long the changeover should take. Your current bank will contact your new bank with a list of all the Direct Debits you have in your account, set up your Direct Debiting in your new account and then tell your current bank to cancel your Direct Debits.

All you will need to do is tell your employer or anyone who makes regular payments to you of your new bank account details to ensure that you continue to receive payment.

The service is free and the bank can also remove any Direct Debits you do not want to have on your new account (remember: you must notify the organisation that you are cancelling a payment to and advise them of your new intended method of payment).

If you are a business owner and find that you do not have the time, money, effort or resources to effectively manage your Direct Debit needs, you may wish to outsource your Direct Debit processing to a bureau.

Direct Debit Bureaus like Smart Debit  provide a complete Direct Debit processing service from setting it up with new payers, maintaining the databases as well as monitoring outstanding payments. Smart Debit is one of the UK’s largest BACS-approved commercial Direct Debit bureaus processing over 150m customer transactions since operating in 1998.

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