Processing Standing Orders

Discussion in 'Accounts & Finance' started by Sidney Blackmore, Feb 14, 2020.

  1. Sidney Blackmore

    Sidney Blackmore UKBF Newcomer Free Member

    2 0
    Hi folks. Bit of a technical question this. Due to any DD provider being scared off helping us, apparently there have been a lot of scammers in the industry which we have become involved in, we are having to resort to using Standing Orders from our customers. We've devised a way, using Xero accountancy software, where we can track weekly if a customer has paid their monthly fee or not. To do it we have to get a reference number each time we sign up a new customer, not easy but doable.

    I suppose I have few questions.

    1. Where do I find out where to send these Standing Order mandates to?
    2. Are they posted out, or is there an email address where these Standing Orders can be sent to be processed?
    3. Will the bank use the reference number we put on the Standing order mandate?

    Thanks in advance.
     
    Posted: Feb 14, 2020 By: Sidney Blackmore Member since: Feb 14, 2020
    #1
  2. MyAccountantOnline

    MyAccountantOnline UKBF Legend Full Member

    12,943 2,406
    Nearly all of my firms clients pay by standing order. A few years ago we used to send standing order mandates to clients to complete and send to there own banks but I dont think people use them anymore; most standing orders will be set up using online banking so you just need to give people your bank details. I always ask that when payments are made they quote the company or business name as a reference so that the payments are easily matched to the monthly invoices. I find it works very well. Haven't had any problems with it at all.
     
    Posted: Feb 14, 2020 By: MyAccountantOnline Member since: Sep 24, 2008
    #2
  3. Sidney Blackmore

    Sidney Blackmore UKBF Newcomer Free Member

    2 0
    Thanks for your quick response Nicola. That's unfortunately not going to work for us. We are selling our own product where our customers will have the forms filled out for them. either face to face or over the phone.
     
    Posted: Feb 14, 2020 By: Sidney Blackmore Member since: Feb 14, 2020
    #3
  4. MyAccountantOnline

    MyAccountantOnline UKBF Legend Full Member

    12,943 2,406
    That's a shame.

    I'm not quite sure how its going to work for you as a standing order has to be created by your customer unlike a direct debit.

    Certainly for customers you see face to face you could just create a standing order mandate (you'll find lots of examples with a quick Google search) including their bank address for them to sign which you can then post to there bank.
     
    Posted: Feb 14, 2020 By: MyAccountantOnline Member since: Sep 24, 2008
    #4
  5. SERC1204

    SERC1204 UKBF Regular Free Member

    102 7
    Hi

    I worked for a travel company several years ago, some customers were given the option of a standing order to spread the cost of their holiday.

    We had a standing order template (and covering letter explains the payments etc.), the template could be easily amended for the customers details and holiday cost. This would be sent to the customer, they would complete and sign, send back to us and we would then send to their bank.

    Of course there is no real way of knowing if it’s been set up and is working until the first payment comes through. Also, since we handled the admin, customers usually saw this as a direct debit and we had to explain to them the intricacies of making changes (they had to cancel the existing SO etc.)

    Hope this helps.
     
    Posted: Feb 17, 2020 at 5:15 PM By: SERC1204 Member since: Apr 19, 2017
    #5