In today’s digital-first economy, recurring payment collections have become the backbone for many industries — from banking to NBFCs, from insurance to subscription businesses. Yet, despite growing volumes, many organizations still struggle with the operational complexities behind Direct Debit collections.
The Collection Challenge That Many Face
While setting up mandates and auto-debits may sound simple in theory, the reality is far more challenging — especially when you deal with large volumes daily.
Some of the common challenges include:
- High Mandate Rejections: Many businesses see mandate rejection rates as high as 30-40%, which directly affects customer experience and delays revenue realization.
- Operational Overload: Hundreds of calls daily from customers and field staff trying to resolve failed mandates, incorrect debits, or missing payments.
- Revenue Leakages: Technical failures and missing UMRNs can directly result in crores of lost revenue every month.
- Delayed Settlements: Collections often take multiple days to reflect, affecting cash flow predictability.
- Dependence on External Clearing Systems: When processing relies heavily on external networks, any disruption or load issue results in delayed debits.
The result?
A recurring operational fire drill — with customers, collections teams, finance departments, and IT all caught in a constant cycle of troubleshooting and firefighting.
What Businesses Need Today
To run an efficient Direct Debit operation at scale, businesses need:
- High processing accuracy: To minimize rejections and customer disputes.
- Real-time validations: To catch errors upfront before debits fail.
- System stability under high load: Capable of handling lakhs of debit entries daily.
- Minimal manual intervention: Freeing teams from endless reconciliation and troubleshooting.
- Quick settlement cycles: Ensuring faster fund availability and cash flow visibility.
When these capabilities come together, businesses can transform collections from a friction point into a growth enabler.
A Quick Note on Paycorp’s Work in This Space
While every business faces its own unique challenges, solutions like the one developed by Paycorp have demonstrated how even high-volume Direct Debit collections can run with precision, stability, and speed. By addressing mandate rejections, reducing troubleshooting calls, preventing UMRN losses, and enabling same-day settlements — Paycorp’s approach has helped businesses move from reactive problem-solving to stable, predictable operations.
Download the complete case study to explore one such transformation.
