Practices fare badly in new direct debit statistics

November 9 2011

Practitioners could be missing out on potential cost savings from switching customers to direct debit, according to new research from not for profit organisation Bacs.

The newly published ‘direct debit league table’ shows optical practices fare badly compared to other businesses when it comes to switching to the automated payment system, instead relying on cash or cheque payments from patients.

Currently, only a third of eye care patients pay for their vision correction using direct debit, which Bacs estimates could save businesses £10 per year for each regular payee as well as ensuring payments are received on time.

Head of marketing at Bacs, Mike Hutchinson, said: “The economic recovery is still in a rather precarious position, and it is vital that opticians receive monies owed to them in a timely manner. Those firms which enjoy high levels of direct debit take-up benefit not only from direct cost savings but better cash flow management and greater reliability in the collection of payments."

“Firms that fail to promote the benefits of direct debit as a reliable, automated payment method, risk losing out on significant cost savings which could impact their bottom line,” he added. “At a time when increasing numbers of firms are competing for diminishing customer spend as inflationary pressures continue to squeeze household expenditure, it is now more important than ever to retain existing business and ensure customers pay up on time.”