Nick wrote:
> Tommo wrote:
>> In addition, I would imagine that
>> the processing/monitoring of the payment is more expensive for non-DD
>> customers as well
>>
>
> Why? Do you think BT doesn't have a computerised accounts system that is
> capable of checking a payment has been made on time?
Its slightly more expensive to monitor, in that
1) a small percentage of cheques/cash paid in have a .ed up account
number filled in on the paying in slip, or no slip at all.
2) a small percentage will be out by some amount, even if only a penny.
Thus £67.99 paid in on the 20th Aug might have umpteen thousand
customers who it might belong to, and this tieing together takes time,
effort, and usually human intervention. DD doesn't have this prob.
A DD system is also self reporting -
We asked 100,000 people for money
- we received money from 98,000
- 1,900 were short of cash, try again
- 100 - failed -
Only have to write to 100 - very easy and cheap and brings forward the
timespan to grab real problem customers
Cash system
Bill 100,000
98,000 pay on time
2,000 haven't paid - write to all
1,000 pay
write to next 1,000
500 pay
time drags on
chase final 100 after much delay.
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