Debit Orders Can Increase Your Payment Collections

Payment collections are never easy but technology has certainly made the process less time-consuming and less costly.  In fact, the use of bulk payment collections through debit order payments has helped thousands of companies collect monthly payments from customers in a more organized way, allowing for greater certainty that payment will be made and that it will be made on time.

 

A debit order is a payment that is typically made once a month for the purposes of paying for a debt or on-going service.  It allows a business or creditor to collect money from a person’s bank account or credit card on a certain date of the month, with the permission of the account holder, and this payment is processed electronically.  The third party who initiates the debit order controls the amount that is debited each time but the bank account’s owner can still stop the debit order at any point with his or her bank.

   

One of the major differences between a debit order and a stop order is that when processing a debit order, the owner of the bank account gives the third party permission to take money out of the account.  The third party is the one who sets the amount to be withdrawn in a debit order, but in a stop order, the account holder sets the amount to be withdrawn.  Essentially, a debit order is a negotiation between the third party and the debtor (or customer) and is initiated by that third party, while a stop order is initiated by the holder of the bank account. 

Using debit orders for your businesses payment collections will not only help your business increase its revenue – it will also give you more control over the payments that come in, helping your bottom line and overall debt recovery. This is often as simple as incorporating web-based software in your debt recovery efforts to control and secure debit orders, EFT payments, and bad debt management solutions.