Monday 15 April 2013

Improve earnings; Start using debit orders as part of your businesses payment collections

By Tim Smart


In today's ever widening world of transaction collections the debit order reigns superior as being the greatest cheap solution to effective bulk payment collection. When you have thought about beginning to make use of debit order payments as part of your collections then read this article to acquire a summary of this payment collection strategy.

Let's first look into precisely what a debit order is. A debit order is thought of as a payment instruction typically used for the monthly collection of funds. A debit order offers a third party authority to collect funds from your account with a bank or debit card via a written, telephonic or digital debit instruction.

Then you could ask, is there a difference between a debit order and a stop order? Well, it really is reasonably easy, a stop order is usually an instruction which you issue to your bank to create a series of future dated recurring payments, whereas a debit order is an instruction you choose to provide to some third party.

Since we have that clarified, did you know that there exists a couple of sort of debit order? Yes, there are three sorts of debit orders in common use through the entire payment collection industry:

EFT debit orders, AEDO (Authenticated Early Debit Orders) and NAEDO (Non Authenticated Early Debit Orders).

All these are facilities which facilitate a third party to collect money from a client's account. EFT debit orders are the standard debit order payment instructions directed by a 3rd party towards the credit card or bank account of the paying consumer with regards to a instruction granted by the customer. AEDO and NAEDO are payment systems which facilitate the processing of Early Debit Orders (EDO) that is simply a debit order processed close to credit payment. AEDO needs pin authentication from a pos while NAEDO's don't. This restricts NAEDO debit order submission to banking accounts only.

Now you understand what they are really, why would you use debit orders? It's simple; debit orders allow you to take control of your payment collection. NAEDO's allow tracing on accounts to process a payment close to a credit payment so that your probability of collecting payments increase and with that the same is true for your money flow. It will save you and your customers money on bank charges and you receive accurate reconciliation info on paid and unpaid payments right away.

That being said adopting debit orders for your businesses payment collections will give you greater control over payment collection, increased revenue as well as leaving you in a better financial standing.




About the Author:



No comments:

Post a Comment