The public is being encouraged to ask for Direct Debit services from their banks or service providers and use it for payments that they make repetitively. This is to enable them to enjoy the convenience that comes with it while taking away the stress of going to make such payment on every single due date.

The suggestion was made by the Chief Executive of Ghana Interbank Payment and Settlement Systems Archie Hesse as part of efforts to drive patronage for electronic payment options, which are more efficient.

The Automated Clearing House (ACH) Direct Debit is offered by banks and it is an electronic form of payment that customers can use to pay mortgage, utility bills, various forms of fixed subscriptions such as for gyms, magazines, pay-TV, and association membership dues among others.

The customer, only needs to fill a Direct Debit form that will authorise the companies or institutions you need to make these regular payments to, to collect the stated amount from his or her bank accounts on specific dates.

The obvious advantage of Direct Debit is that it allows utility bills, subscriptions and any other forms of regularly payments to be made timely.

It is also safe, convenient and cost effective for users, as it takes away the hassle of having to make such payments every time they are due.

Although Direct Debit appear similar to Standing Orders, the former can be used for the payment of both fixed and variable amounts. Additionally, the electronic nature of Direct Debit allows for immediate refunds from the bank in the event of an incorrect payment.

Close to 900 thousand Direct Debit transactions took place in Ghana last year representing a growth of about 26 percent over the previous year. However, the value of the transactions during the same period stood at 127 million Ghana cedis which is a growth of almost 80 percent, according to the GhIPSS 2016 Performance Report.

GhIPSS and the banks want to see significant growth in the use of this payment option because of the obvious benefits. The two institutions have therefore decided to intensify awareness about it through a series of activities this year.

Mr. Hesse said though GhIPSS and the banks will drive the Direct Debit agenda, various service providers should also join by informing their customers about this payment option. “When customers default in paying bills or subscriptions, the service providers or organisations suffer, so if they encourage customers to use Direct Debit, they would be happier for it”, Mr. Hesse explained.

The GhIPSS Boss said Direct Debit benefits both the service provider and the customer, giving it a strong case to drive its usage in Ghana, just as it pertains in developed economies.