Questions we are often asked
Does Direct Debit have the same ‘legal’ obligation to pay as standing order?
Yes. The obligation to pay comes from the tenancy agreement. Unless something to the contrary is written in the tenancy
agreement about how the rent is to be paid (in addition to setting out the amount and payment dates), the obligation to pay the rent is clear and independent of the medium used to make the payment; whether standing order, Direct Debit, cheque, credit card,
cash or gold bullion.
How secure is your system and my data?
The PAID & CO system is secure; it uses 256-bit encryption and is annually penetration-tested against the standards in Common vulnerability Scoring System, Common Weakness Enumeration and others - e.g. Common Vulnerabilities and Exposures - as referenced by penetration testing companies.
How long does it take to set up an account with PAID & CO?
If you are already a customer of HomeLet or Rentshield Direct, we can set you up with PAID&CO within a day. If you are not already a customer, we will need to complete a few anti-money laundering checks before setting up your account.
How long will I need to wait for payments to be processed?
Like card transactions, Direct Debit payments do not instantly clear into your bank account. It will generally take at least two banking days before the funds are cleared. For example If the collection date is Tuesday the 8th you get cash in your account on Friday the 11th.
Do I have to move all my tenants from standing order to PAID & CO on day one?
You can choose to move all tenants immediately; but most agents put New Tenancies, Tenants that are paying inconsistently and renewals onto PAID & CO.
How much does it cost to set up access to PAID & CO?
Access is free - there are no set up costs. You simply pay per transaction.
How can I reconcile payments with my property management system? You can upload data from PAID & CO as easily as you upload your bank statements. But, unlike your property management system, PAID & CO highlights problem payments automatically - based on the daily updates from BACS.
Is there a risk of the tenant raising an indemnity claim under the Direct Debit guarantee scheme?
This question relates to this part of the Direct Debit guarantee:
If an error is made in the payment of your Direct Debit, by the organisation or your bank or building society, you are entitled to a full and immediate refund of the amount paid from your bank or building society.
If you receive a refund you are not entitled to, you must pay it back when the organisation asks you to.
Barbon research indicates that this occurs rarely (0.15% of the time), and is most likely to occur due to the tenant moving out without the Direct Debit being cancelled. Our service follows BACS guidance and, as such, minimises your risk. In the unlikely event that an indemnity claim is raised by one of your tenants, PAID & CO will fund the immediate indemnity claim and guide and support you through the process of resolving the issue. Remember that the obligation on the tenant to pay rent comes from the tenancy agreement, so indemnity claims do not affect the fact that the tenant must pay you in line with the signed tenancy agreement.