Direct debits to charities hold up better in second quarter of this year

Figures from Bacs Payment Schemes show that the number of unpaid transactions fell by 7 per cent

Direct debit
Direct debit

The number of direct debits to charities that went unpaid was down by nearly 7 per cent in the second quarter of 2010 compared with the same period last year, figures from the financial transaction company Bacs Payment Schemes indicate.

The number of unpaid transactions through the Bacs system fell from 147,000 in the second quarter of 2009 to 137,000 in the same period in 2010.Previous research by Bacs found that most unpaid direct debits were caused by customers having insufficient funds in their bank accounts or cancelling their direct debit mandates.

This year’s figure represents 1 per cent of all transactions to charities made by direct debit. Last year’s figure represented 1.16 per cent.

Michael Hutchinson, head of marketing at Bacs, said charities should bear in mind that not everyone is paid at the same time of the month.

"Our experience shows that offering customers the option of various payment dates can cut down on unpaid direct debits and encourage sign-up," he said.

The total number of direct debit transactions to charities in the second quarter of 2010 was just over 13 million, an increase of more than 340,000 donations from the corresponding period last year.

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