A direct debit is a free, quick and convenient method of making regular payments (e.g. bills, installments, subscription etc.) without having to visit Samba to pay your dues. Direct Debits are used throughout the world and are acknowledged as the most effective method of processing regular and periodic payments. Direct Debits collect funds from counter-parties with other banks accounts without being dependent upon the Direct Debit Mandate signed by the counter-party.
Companies using Direct Debit Scheme
Direct Debits are used for bill collection throughout the world by insurance companies, utilities, finance companies, service suppliers, automobile companies, and other organizations which receive regular and periodic payments.
How Direct Debit works?
Samba provides this service to automate the bill collection of its customers. This can be done by simply asking your customer to sign the Direct Debit Mandate, in order to instruct his/her bank to authorize you (Samba's Customer) to collect varying amounts from his/her account in settlement of outstanding bills for goods or services provided.
The participants in the Direct Debiting Scheme are
- The Originator, i.e. the company (electricity, telephone, car leasing company etc.) which provides the goods or services
- The Sponsoring Bank (Samba), where the Originator maintains its account.
- The Payer, i.e. the Bank customer who wishes to pay the bills and whose account is to be debited.
- The Paying Bank, i.e. the Bank holding the Payer’s account, which is to be debited.
Direct Debit benefits to Samba customers
- No need to operate a detailed reconciliation process to check the receipt of payments due.
- Customers can concentrate on direct debits that are returned unpaid by marking as exception
- Reduced usage of front office, stationery and postage overheads.
- Greater predictability in cash flow.
- Auto-reconciliation when linked with our electronic reports.
- The service is completely safe and is sponsored and governed by Saudi Arabian Monetary Agency (SAMA).