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Direct Debit Scheme
Easily collect regular payments from your customers
Question: Should we remove how the service works, how to sign up, and service charges
Direct Debit is a mode of payment made between a payer to a payee through an Electronic Funds Transfer. It is an automated process where payer signs an agreement with the payee (corporate or business) allowing the payer to electronically move payment (debit) from his/her account to the originator’s (payee) account without any intervention. This can be done as a one off, or continuously over an agreed period and the two can be from the same bank or different banks. Direct debits have a pulling effect by the payee, other than a standing order where the payer pushes the payment.
Benefits
- Payee will have their customers sign a Direct Debit instruction showing the date of debit to their account, frequency, amount if fixed or variable and account to be debited irrespective of their commercial bank. Once the payment date is due, I&M Bank will process instruction that will debit customer’s/member’s account within I&M Bank or any other commercial bank and credit corporate account with I&M bank. Peace of mind to collect.
- A report or return file will then be sent to Corporate confirming all debits that were successful and those that were unsuccessful and reason for ease of reconciliation. Riding on the existing integration, the return file can also be pushed to Corporate ERP for automated update of member’s/customer’s details with the received payments. Peace of mind to Reconcile.
- Corporate’s customers will not need to worry about their recurrent obligations to Corporate not being paid on time. Peace of mind to Pay.
Among other benefits that your business and your customers will enjoy include:
- It is easy and convenient – the process is automated after initial set-up
- Free set-up for corporates
- Cost effective
- Better cash flow management
- Quick reconciliation using ready reports
- Easy to pick and follow-up on failed payments
- Eliminates risks of cash payments and cheque clearing
- Automatic transfers as per desired frequency – No need for your customers to keep tracking the due dates.
How the Service Works
- Your business, (referred to as an Originator in the Direct Debit Scheme) asks its customers (referred to as Payers) for an authority or mandate to make periodic deductions from the Payers’ Bank account being payments for a service offered. The Originator then forwards the instructions to I&M Bank to collect the monies owed as per stated frequency and credit the proceeds to the Originators Bank account at I&M Bank. Funds from other Banks are collected through the Clearing House under Kenya Bankers Association.
How to sign-up
Service charges
| Transaction description | Charge to the I&M Bank Business customer |
| Set-up cost | Free |
| Inward Direct Debit Transfer | KSh 100 per transfer |
| Unpaid outward Direct Debit Transfer | KSh 500 per transfer |
Want more information?
Click above to view the brochure. For more details on this service and how to get started, kindly contact your branch manager or your relationship manager.
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