In today's ever increasing world of payment collections the debit order reigns supreme as the ultimate low priced solution to efficient mass payment collection. If you have thought of beginning to use debit order payments for your collections then check out this article to get a summary of this transaction collection process.
Let's first look at what a debit order is. A debit order is thought of as a payment instruction typically used in the monthly collection of money. A debit order gives a third party authority to collect cash out of your account or debit card via a written, telephonic or electronic debit mandate.
Then you might ask, is there a difference between a debit order and a stop order? Well, it is pretty simple, a stop order is really an instruction that you choose to issue to your bank to make a series of future dated recurring payments, whereas a debit order will be an instruction which you provide to some third party.
Now that we've that clarified, are you aware that there is a couple of form of debit order? Yes, there are actually three sorts of debit orders in common use throughout the payment collection industry:
EFT debit orders, AEDO (Authenticated Early Debit Orders) and NAEDO (Non Authenticated Early Debit Orders).
All these are facilities which permits a 3rd party to collect money originating from a customers account. EFT debit orders are the standard debit order payment instructions directed by a third party towards the credit card or banking account of the paying customer in terms of a mandate granted by the customer. AEDO and NAEDO are payment systems which facilitate the processing of Early Debit Orders (EDO) which is simply a debit order processed like a credit payment. AEDO requires pin authentication from a point of sale while NAEDO's don't. This restricts NAEDO debit order submission to banking accounts only.
Now you really know what they are really, why wouldn't you use debit orders? It's simple; debit orders allow you to moderate your payment collection. NAEDO's allow tracing on accounts to process a payment near to a credit payment so your chance for collecting payments increase and with that so does your money flow. It will save you and your customers money on bank charges and also receive accurate reconciliation info about paid and unpaid payments immediately.
All things considered adopting debit orders for your businesses payment collections will provide you with greater control of your payment collection, increased revenue and leaves you in a better financial situation.
Let's first look at what a debit order is. A debit order is thought of as a payment instruction typically used in the monthly collection of money. A debit order gives a third party authority to collect cash out of your account or debit card via a written, telephonic or electronic debit mandate.
Then you might ask, is there a difference between a debit order and a stop order? Well, it is pretty simple, a stop order is really an instruction that you choose to issue to your bank to make a series of future dated recurring payments, whereas a debit order will be an instruction which you provide to some third party.
Now that we've that clarified, are you aware that there is a couple of form of debit order? Yes, there are actually three sorts of debit orders in common use throughout the payment collection industry:
EFT debit orders, AEDO (Authenticated Early Debit Orders) and NAEDO (Non Authenticated Early Debit Orders).
All these are facilities which permits a 3rd party to collect money originating from a customers account. EFT debit orders are the standard debit order payment instructions directed by a third party towards the credit card or banking account of the paying customer in terms of a mandate granted by the customer. AEDO and NAEDO are payment systems which facilitate the processing of Early Debit Orders (EDO) which is simply a debit order processed like a credit payment. AEDO requires pin authentication from a point of sale while NAEDO's don't. This restricts NAEDO debit order submission to banking accounts only.
Now you really know what they are really, why wouldn't you use debit orders? It's simple; debit orders allow you to moderate your payment collection. NAEDO's allow tracing on accounts to process a payment near to a credit payment so your chance for collecting payments increase and with that so does your money flow. It will save you and your customers money on bank charges and also receive accurate reconciliation info about paid and unpaid payments immediately.
All things considered adopting debit orders for your businesses payment collections will provide you with greater control of your payment collection, increased revenue and leaves you in a better financial situation.
About the Author:
Learn more about direct debit. Stop by Tim Smarts site where you can find out all about electronic funds transfer and what it can do for your business.
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