For any business out there, a reliable payment and collection method is vital. Providing diverse payment options is very beneficial for your business’ brand name. Consumers will always look for what is easy and convenient for them. Once you provide an easy choice for your customer, you will make regular customers.
Your payment and collection method should be safe. Credit and debit card fraud is getting more and more common nowadays. This is one of the reasons why most people avoid credit and debit card payments. Once you ensure safe payment methods, customers will rush towards your business For businesses, unpaid overdue invoices are also a major cause of reduced cash flow. Hence, you as a consumer and you as a retailer need a solid payment or collection method. The most reliable and safest method is the direct debit service.
What Is Direct Debit Service?
A direct debit method is a convenient collection and payment method where an organization or the company automatically deducts the purchase amount from the bank accounts of the consumer. These payments and deductions are first authenticated by the consumer and then deducted under the authorization of Banker’s Automated Clearing Services. Direct debit collection companies regulate the payment and collection easily for you and give you all the statistics whenever required. Direct debit services or collection companies are the companies that set up and regulate your direct debit service. Usually, direct debit services are used for regular payments such as leases, loans, installments, rents, etc.
Advantages of Direct Debit.
1. Low failure rate.
Usual card transactions and payments have a failure rate of nearly 18%. That is very risky when it comes to hefty payments. You cannot risk losing a big sum of money all due to a lousy transfer system. Direct debit service has a low failure rate of less than 2.2%. This means there is nearly no chance of losing any sum of payment.
2. Secure payments.
Direct Debit services allow you to securely make payments. The collection method is secure as well. Say goodbye to credit and debit card frauds when it comes to direct debit payments.
3. Quick and convenient.
Direct debit services notify you about the payment/deduction of your due payment 10 days beforehand. The payment is authenticated before the payment is made. Direct debit saves time and as a businessperson or a working person, time is money. The automatic process makes the payments, you do not have to worry about anything.
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4. No late payments.
Forget the hassle of last-day late payments. You do not need to worry about standing in lines worrying whether you will make it in time or not. Direct debit services ensure timely payments.
5. Trusted and verified.
Direct debit services are trusted and in use for years by large-scale companies and firms. It is a safe method and highly recommended on an individual and a large level.
6. Cost-effective.
Credit and debit card payments have a 3-5% interest rate. That means, with the transfer of $1,000 dollars, $30 to $50 will be deducted. On the other hand, direct debit only deducts 1%. That means $10 will be deducted on a $1,000 transfer. Saves time and money? What else do you need?