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Issue 7
Under the Microscope
The results of BPAY's 2008 annual Usage and Attitude Study show that BPAY remains the preferred choice for Australian bill payers.
As an alternate form of electronic funds transfer (EFT), direct debit does share some similarities with BPAY. However there are a number of key differences separating the two, most significantly related to core customer benefits of control, flexibility and security.
The table below provides a broad comparison of the two payment methods.
| BPAY | Direct Debit |
| Payer initiates the payment | Biller initiates the payment |
| Payer chooses when to pay and how much to pay directly to the Biller | Considered a "set and forget" option, responsibility for the payment assumed by the Biller |
| Payments automatically validated | Biller is given written authority by the payer to debit their nominated account |
| Billers can specify minimum and maximum payment amounts | Biller is permitted to continue debiting the customer's account until the contact/agreement is terminated |
| Payers have a choice of account from which to pay (subject to Biller acceptance) | Biller agrees a set date and account from which to debit funds |
| Payers can verify who the payment goes to | � |
| With mistaken payments, both the financial institution and the Biller can provide assistance to the consumer | With mistaken payments, the consumer needs to go through the Biller for assistance, rather than their financial institution. |
| The funds going to the Biller are cleared funds | There is a chance that the customer will not have the required funds in their account for the direct debit, leaving the Biller with exception processing issues |
| The back end reconciliation process for Billers is simplified, due to the individual Customer Reference Number being assigned to a specific consumer | The Biller allocates the payment to a customer based on the bank details provided by that customer |
Billers offering a range of payment options for customers, including BPAY and direct debit ensure that their customers have all the options they need to make the right payment choice for every bill.
