Business Overdrafts
Be financially flexible with a business overdraft.
DFS Furniture PLC
Read time: 3.5 mins Added date: 10/01/2024
Putting comfort and ease at the heart of the refund payment process.
Prompt and easy refunds represent an important part of the customer experience. It’s vitally important that, when issued, customers receive their refund payment quickly, securely and without any complications. Faced with specific and complex requirements when issuing refund payments, it was exactly this idea that prompted DFS Furniture plc to speak to Lloyds about making refunds smooth, secure and fast.
Return to sender
As the nation’s leading sofa retail group, DFS Furniture plc is a brand familiar in thousands of living rooms across the country. With over 170 showrooms across the group’s two major brands – DFS and Sofology – the furniture expert has operated for more than 55 years. Alongside their range of sofas, DFS also offers beds, dining and outdoor furniture, and homeware. While customers who are purchasing larger items often pay by card or make use of DFS’ interest-free credit options, the business also accepts cash, predominantly for the purchase of smaller items such as cushions.
However, the refund process for items paid for by cash was complex. DFS stores don’t hold any cash on-site and don’t carry a cash float, so any refunds for items paid for by cash had to be completed via cheque. The cheque issuance process was time-consuming and resource intensive. It was also less convenient for their customers, since they were required to wait for the cheque to be delivered in the post before they were able to cash it and eventually receive the refunded payment.
Removing time and costs from refunds
The complicated refund process prompted the DFS team to speak to payment experts at Lloyds, who engaged in a thorough discussion with DFS to understand the challenges they faced.
As a result of this exploration, Lloyds suggested that using embedded payment solutions – API-powered payment technology – could help streamline and enhance the refund process. In particular, Lloyds recommended implementing Lloyds Bank PayMe® – which allows businesses to make singular payments where the beneficiary’s bank details are not known. Lloyds Bank PayMe® also includes a Confirmation of Payee check integrated into the process, which helps to reduce the risk of fraud by verifying the beneficiary’s bank details prior to making a payment.
For DFS, this meant that instead of issuing a cheque refund to customers that have paid in cash, they could send a link by email to the customer. The customer can then input their bank details safely and securely, after which they’ll be paid the refund almost immediately, since Lloyds Bank PayMe® uses the Faster Payments Service. The Confirmation of Payee check ensures that the refund process is subject to a high level of security and guarantees that the payment is made to the correct account.
Nearly 80% of our customers claim their refund within a few days of receiving the link from us – that’s much faster than waiting for a cheque.
Louise Robinson Group Order to Cash Manager at DFSAn enhanced experience
The combination of embedded payment solutions has been immediately impactful for DFS. “Nearly 80% of our customers claim their refund within a few days of receiving the link from us – that’s much faster than waiting for a cheque and cashing it,” said Louise Robinson, Group Order to Cash Manager at DFS.
“Not only have we saved on the admin and postage costs, we are able to communicate with our customers in a quick and easy way, and allow them to process their refund at a time and place that works for them. The added controls of the Confirmation of Payee validation ensure the refund is going back to the right person.”
For DFS Furniture plc, the solution was so successful when implemented in DFS stores that they have also integrated both embedded payment solutions into the refund process for Sofology customers too. “It’s great to have the same solution that we can use across both our brands and retain the brand identity for our customers,” said Louise.
“Presenting an excellent customer experience is in the DNA of many of the nation’s well-known brands, including DFS,” said Dave Wilson, Director, Consumer, Technology & Leisure Sectors at Lloyds Bank. “Being able to provide a seamless refund process through Lloyds Bank PayMe® – resulting in a near-instant payment – is an effective way to ensure customer satisfaction. Not only this, but it also removes the burden of administration for staff, freeing up both time and resources and boosting productivity.”
Lloyds Bank PayMe® is an effective way to ensure customer satisfaction while removing the burden of administration for staff.
Dave Wilson Director, Consumer, Technology & Leisure Sectors at Lloyds BankSimplify your payments
Lloyds Bank PayMe® is just one of our six embedded payment solutions. Other solutions include PayTo, which uses a secure connection to the bank to allow businesses to make payments directly from their own system, and PayFrom Bank, which enables customers to send payments, ensuring that the business receives funds quickly. For more information on how embedded payments could transform your business, speak to your Relationship Manager.