Direct Payment
Direct
Payment is the electronic transfer of an authorized payment from a consumer's
checking or savings account into the account of a business. Direct Payment is a
safe, secure, accurate and on time payment method. In fact, Direct Payment is
transferred through the same secure system used for Direct Deposit. Direct
Payment has many benefits for both consumers and companies. It helps companies
improve cash flow predictability, build consumer loyalty, and save time and
money. And for consumers, Direct Payment simplifies bill paying. If your
business sends out invoices, this is an excellent way to collect your accounts
receivable while eliminating the ongoing expense of processing payments through
traditional paper methods. By automating your receivables your payments arrive
on time, every time. The Direct Payment process
|
|
Direct
Payment Process
-
The customer authorizes a company in writing to debit payments from a checking
or savings account, and provides account number information.
-
If the amount of monthly payments varies, the company sends the customer a
notification of the payment amount 10 days prior to the payment transaction.
The customer may waive this right by signing a variable amount authorization.
-
The company prepares the ACH file for delivery to its financial institution one
or two days prior to the effective date in a pre-arranged format, usually by
transmission.
-
We submit your transactions directly to the Federal Reserve Bank for processing
through the ACH system to each customer's bank account.
-
On the settlement date, your customer's account is debited and your company's
account is credited for the payment.
-
The details of the transaction are reflected on your customer's monthly
checking statement from their bank.
|
Benefits
of Direct Payment:
-
Timely funds settlement
-
Less expensive than mailing invoices
-
Eliminate time spent invoicing/billing
-
Eliminate collection calls
-
Streamlines the billing process
-
Reliable cash flow eliminating outstanding receivables
-
Flexible payment scheduling options
-
Client retention
|
| back
to products main page... |
