Retailer FAQs
Here are the most frequently asked questions about the Terms and Conditions of the Scheme, full details are provided in your sign up/welcome pack.
1 Is my money safe?
Yes, it's 100% covered by your banks Direct Debit Guarantee. If PayCycle ever took money early, or took the wrong amount, you can ask for an immediate "no quibble" refund from your bank. Easier still, you could just phone the office team and ask us to reverse the transaction. That said, it's very unlikely you will ever find an error because:
a) the PayCycle scheme is managed by a long standing and trustworthy buying group (Gainsmore) who have been trading for 28 years. They specialise in Direct Debit collections from Independent newsagents and corner shops, so naturally they were first choice to handle the PayCycle scheme for IBDs.
b) all the amounts are supplied electronically by your suppliers. There's very little room for human error.
c) you receive your statement 10 days before any money is requested and have access to your PayCycle account 24/7. If any invoices amounts (or invoice due dates) look wrong, you just Hold them.
2 How quickly are my invoices paid?
Funds are transferred to suppliers within 24 hours. Though they can take 1-3 days to get through to the supplier via BACS. Suppliers who take part in the scheme know to allow for this, so you will not go on block. During the short time that PayCycle hold your funds, they are still "your money" and are covered by the Direct Debit Guarantee. The funds only become the suppliers money at the point of transfer.
3 Do I have to pay all my invoices on time?
No, all your invoices are lined up to be paid on time with their supplier due dates, but that doesn't mean you have to pay them all. Simply login to your PayCycle account and hit the Hold button for any invoices you don't wish to pay. Or call the office team. Of course you pay most suppliers on time for the majority of the trading year. But there are times when cash flow in the cycle trade is tight and you have prioritise who to pay first. Pay as much as you like, whenever you like. You're in complete control.
Using PayCycle means you select the small minority of suppliers who you don't want to pay. Instead of using BACS or a cheque book where you have to select all the majority you do want to pay. In other words, 10% effort, instead of 90% effort to pay your invoices.
4. Will I go on block if I don't pay an invoice?
Normally yes, just as you do now. Your suppliers will be informed about a Held Invoice - when you're not paying their invoice on time. Then it's up to you and your suppliers to decide whether you go on block and when you will pay. If you have notified an invoice error, most suppliers won't put you on block.
5. How are errors and credits dealt with?
Although '99%' of invoices and payments are fully automated and run smoothly, occasionally suppliers submit incorrect information (such as the wrong amount or the wrong date). If and when this happens, just Hold the invoice that's wrong and use the drop down menu to flag what's wrong with it. You can also add a message to your supplier.
Once the payment is held and your supplier is informed they can:
- reissue an invoice with a new date and cancel the old one
- change an invoice date
- change an invoice amount
- issue a credit or partial credit against an invoice
Any of these changes can be actioned and reflected in your PayCycle account, credit amounts will be netted off your weekly collection total.
6. What happens if I can't pay any of my invoices this week?
You can choose not to pay any of your invoices. There are no rules about how retailers use the system, PayCycle is simply another payment mechanism. We don't make any judgements about who pays what when. Or get involved with chasing overdue balances or debt collection. We are just an easier way to pay.
7. What happens if my Direct Debit fails?
Direct Debit failures create unnecessary bank charges for both the retailer and the scheme. We hope you are able to align your payments (using the Hold option) such that your weekly Direct Debit clears - in exactly the same way you would make BACS payments according to your current cash flow. It's better that you Hold payments with some suppliers than fail to pay all of them. PayCycle reserve the right to withdraw your membership of the scheme if your Direct Debits fail on more than 3 occasions. Avoid the broom wagon!
8.Will PayCycle chase me for overdue invoices?
No, never. PayCycle is a payment scheme that specialises in timely, consolidated collections by Direct Debit in the cycling retail sector. We operate a (non-guaranteed) transaction based buying group structure. We are not a debt collection agency or factoring house. We do not take action or pursue for late balances or overdue debt.