Thinking about switching Direct Debit Providers? It’s Easier Than You Think
Sometimes the service providers we choose at the beginning of our business journey are the perfect fit for that time. However, as the business grows and your needs change, checking in on whether these needs are being met is crucial.
Whilst moving to a new billing solution might seem daunting at first, it could be far easier than you imagine, and the benefits you can reap from making the switch may be well worth your while.
If you are in the market for a new direct debit provider, there are some points worth considering.
Benefits of making the switch
It’s key to consider a provider’s features that are of most value to your business, and those that may be on your wish-list. Certain features can result in higher collection rates, such as credit card expiry exemptions and time-of-day billing optimisations. A higher collection rate means more cashflow for your business. Other features ensure a better customer experience for your members. This includes offering a variety of payment options and automating pre-debit notifications so that your members remember when they will be charged and can top up their bank account. Other features that can take the admin load off your team is in the recovery of payments that fail. Automated rebilling and failed payment handling will undoubtedly assist you to avoid dreaded debt collection processes.
It also pays to look around for a pricing structure that makes sense for your business. Providers will offer very different fee structures and, dependent on your members’ average debit value, will result in different charges to your business. Some providers will also allow you the flexibility to decide whether to pass these fees on to your members or have them charged to the business.
Additionally, there are a few direct debit providers that operate internationally and will support you should you decide to expand your operations outside of Australia. These providers have relationships with local banks and are well versed in local payment trends, putting them in a great position to partner with you as you grow.
Cost of switching direct debit providers
Switching providers doesn’t have to cost you an arm and a leg. In many cases, it can actually be free and even save you money in the long term. The right provider will help you migrate your data as part of their onboarding experience, saving you time and money in the process.
Dedicated migration management
When making the switch, check if your new provider has a dedicated Migration Manager. This gives you a single point of contact to support and manage your migration from start to finish and keep you updated along the way.
Seamless billing with minimal disruptions
Well defined migration processes are used by providers to assist with the migration of your member data. This includes members’ payment details, billing dates and frequency, payment methods and subscription end dates. In doing so, you can ensure that all the relevant data is transferred so that the migration is as seamless as possible with minimal disruption to your business.
How to switch direct debit providers
When you’ve made the decision that it’s time to move to a new provider, here are some simple steps you can follow to make the switch:
- Once you’ve chosen a new provider, contact your current provider to give them authority to pass data to the new provider. Be aware that not all providers will allow this.
- The current and new providers will arrange for your data to be encrypted and sent securely.
- The new provider will receive the data and decrypt it ready to import onto the billing platform.
- The new provider will import the data into the billing platform and check that all information is linked correctly to your members.
- To ensure the data is correct, the new provider will then share with you the billing and member data to verify (excluding payment details such as credit card numbers and expiry dates).
- Once the data has been verified, give the old provider a set date to stop billing. It is also recommended to advise your members of this change before the new provider takes over.
- Advise the new provider of this date and billing will continue as normal on the new provider’s platform.
Supported health and fitness platforms
If you aren’t looking to switch to a stand-alone billing/direct debit provider, your chosen solution may be partnered with your current Membership Management software, or a variety of others, to process member billing. It’s worth checking in to see whether they can assist you while you stay on your current Membership Management software, or if they can recommend another that may be more suitable for your business.
Whether you’re looking to introduce new features or save money, switching to a new billing provider can have many benefits. With the right provider, migrating your business’s billing can be a hassle-free process with minimal disruption to you and your members.
Ezypay is one of Australia’s leading subscription payment providers, initially established with the health and fitness industry in mind. Ezypay continues to service health and fitness businesses directly and through Member Management software partnerships that offer a wide spectrum of functionality and industry experience. If you’re ready to make the switch or would like some more information, you can read more here or contact Ezypay today.
As the CEO of Ezypay, James oversees the growth of Australia’s first Subscription Payments company. Over the last 24 years, Ezypay has expanded to 9 countries across Asia Pacific and developed an innovative cloud billing platform which is integrated with leading software companies across a range of industries.