Collect instalments or lump sums, hold plan funds properly
A funeral plan is paid for now and delivered potentially years later, so the money has to be collected cleanly and then held securely against the plan until it is needed. Both the collection and the safekeeping matter, and the sector is regulated on exactly this point.
Pay now, hold securely, deliver later
Customers pay either as a single lump sum or in instalments over a set term, so a provider runs both a one-off and a recurring collection against the same plan.
The money collected is not revenue to spend; it is held against a future funeral, which means it must be kept segregated and accounted for per plan under the rules the sector now operates by.
When the plan is called on, funds are released to deliver the funeral, and that release has to reconcile cleanly against what was collected and held.
The payment mix that fits
Not one rail. The two to four that match how money actually moves here.
Collect instalment plans on a mandate over the agreed term, timed to the customer's pay date.
Take single lump-sum payments over a bank link, with no card fee on a large one-off.
Hold plan funds in segregated accounts, accounted for per plan until the plan is called on.
Your flow of funds, orchestrated
Lump-sum customers pay over Pay by Bank, and instalment customers collect over Direct Debit across the agreed term. Funds are held in segregated accounts, accounted for per plan, rather than treated as revenue. When a plan is called on, the held funds are released to deliver the funeral and reconcile against what was collected. Collection and safekeeping sit on one ledger per plan.
Every book moves money differently. We map your flow of funds and quote one integration across the rails that fit.
Related
Payments for funeral plans and providers: FAQs
In segregated accounts, accounted for per plan, so money paid toward a future funeral is kept apart from the provider's own funds.
Yes, instalments over Direct Debit and lump sums over Pay by Bank, both reconciled against the same plan on one ledger.
The held funds are released to deliver the funeral and reconcile against what was collected, so each plan closes cleanly.
Tell us how you get paid
Send us the mix of payments you take and make, and we will quote one integration across the rails that fit, priced on your volume.