Wednesday, 17 July 2013

Knowing Debit Order System in Detail

One of the worst reasons for over spending is to compete with somebody. People always wish to have better things as compared to others. This usually turns into a serious disease and can severely hamper financial stability. This also makes people guilty. Overspending is a sin. Borrowing money is a crime. These practices can put anyone into serious debt.

Most people these days live on credit permanently. This is surprising but true. The practise creates a lot of problems in one’s life. Hence, it is crucial to know the trick to get out of the debt as soon as possible. The key is to know the difference between necessary and luxury. One must learn how to put the hard earned money work for them. When it comes to saving money for future, not time is auspicious as ‘now’. The idea is to start spending carefully. It is also about saving whatever is possible and learning to invest wisely.

Most people these days live on credit permanently. This is surprising but true. The practise creates a lot of problems in one’s life. Hence, it is crucial to know the trick to get out of the debt as soon as possible. The key is to know the difference between necessary and luxury. One must learn how to put the hard earned money work for them. When it comes to saving money for future, not time is auspicious as ‘now’. The idea is to start spending carefully. It is also about saving whatever is possible and learning to invest wisely.

In order to get maximum advantages from a specific Debit Order System, it is important to make sure you understand all about the Debit Order Service, how it works, the advantages, disadvantages, and many other things. Knowing about the service in detail will also help a lot in ensuring excellent services to clients at all times. A debit order arrangement is highly beneficial for a business.

The Debit Order Benefits

One of the best ways to start saving money and stay away from debts is to sign a Debit Order. The system allows an individual to write off debit orders on a monthly basis. It also helps in budgeting around whatever is left after the savings. Saving is definitely better than borrowing and incurring debt. It is also crucial to secure future.

There are certain things to watch out for when using a Debit Order Collection for managing debts or staying away from them. The debt repayments should not exceed 40 per cent of take home pay each month. If they get as high as about 50 per cent; the trouble is serious. Insuring vehicle is a must and strong resistance power should be observed against all offers for finance.
There are numerous other benefits of employing this technique to business. Some of these include significant saving of money, time and efforts, no requirement for dedicated staff to collect payments, enhanced cash flow and many more. However, this is possible only if you choose the best debit order. The choice plays an important role. It helps in eliminating all stress, headaches and tensions on the part of clients. Before making a choice, it is imperative to understand the types of debit order collection offered to businesses in today’s time and their benefits.
The choice of a debit order service depends on your specific business requirements. Hence, it is important to check with a professional advisor or speak to the service representatives about a system that will prove profitable for you. The professional will understand your business needs and your payment/debt collection schedule before actually deciding one for you. They will also explain you about the benefits of integrating a specific debit order service into your business.

Saturday, 15 June 2013

Differences Between A Debit Card Transaction And A Direct-Debit Service

Both debit card transactions as well as Debit Order Service are almost the same at their core. Both these transactions authorize a transfer of funds directly from the account of the person who needs to make payments to the account where payments have to be made. So according to a layman’s point of view both debit card and direct Debit Order System are exactly the same.
However, from the merchant's point of view both are very different. Both these transactions are completed via different networks and the charges made for the processing of payments differ in a significant manner.
For debit card transactions a person is often required to sign a long-term contract and pay a fixed amount of fee in order to open an account. The processing of debit card transactions and credit card transactions is conducted through a common network. According to both these transactions funds are deposited after reducing a "discount rate" into the merchant’s account. However, the discount rate for the processing of debit-card purchases is comparatively lower than that charged for credit card purchases. The main cause behind this difference is because the level of risk associated with a debit-card is lesser than that of a credit card.
On the other hand a direct debit order system makes use of the Automated Clearing House (ACH) network to transfer funds between two different bank accounts. An account holder can make use of his regular savings account to carry out Direct-Debit transactions. In order to complete this transaction the account holder will be required to sign a contract with companies having authorization to manage ACH transactions. No long-term commitments need to be made for the completion of these transactions. Each direct debit transaction requires a fixed amount of fee which is independent of the transaction’s size.

What Is Debit Order Collection?

Every now and then banks in South Africa and everywhere else are coming up with newer and better ways for their clients to pay monthly bills and withdraw money. In the beginning people used paper cheques, then came credit cards, then people started using ATM cards, then debit cards were introduce that were directly linked to bank accounts, and nowadays ACH (Automated Clearing House) electronic funds transfers or in simple words Debit order collection has been introduced.
Let us first see what direct-Debit Order is:
Direct debit order is a method according to which a fixed amount of payment is directly deducted from a client’s bank account. It can also be better understood as the process of automated electronic funds transfer. With the help of this method the need to write paper cheques has been completely eliminated. All a client needs to do is to simply fill in a form that permits the bank authority to take funds directly from the client’s savings account and uses it to pay bills or any other payments that need to be made. This service is also being provided by some private organizations situated in South Africa and other parts of the world on payment of some fees.
This method of transaction is commonly used for automatic payments of regular transactions like payment of monthly rent, insurance premium payment etc. A written permission to automatically transfer funds is given to the bank or the organization offering these services only once and the client can free himself from the hassle of writing cheques every month and save a lot of time. This facility can also be used along with an Online Payment Gateway. This helps online products and service providers to gather bill payments from their customers directly from their savings account.

Thursday, 16 May 2013

Debit Order Service Selection Tips

Most businesses are not aware of the amazing benefits of Debit Order Service. In fact, they don’t know how helpful these services can be when it comes to collecting funds from debtors. No wonder they take a lot of time to understand their precise debit order solution that ideally suits their requirements.

Electronic Funds Transfer (EFT) and Early Debit Order (EDO) are the two most common Debit Order System followed in South Africa. This is further grouped into the following:
  • Authenticated Early Debit Order (AEDO)
  • Non-authenticated Early Debit Order (NAEDO) introduced in the year 2006
The EFT debit orders follows EDO debit orders especially when processed through standard banking debit order runs. The other categories; AEDO and NAEDO run randomly before EFT debit orders. They also permit creditors an opportunity to gather funds from debtors.
NAEDO debit order system allows collection of up to R5,000.00. The EFT debit orders can collect up to R500,000.00 for each debit instruction.
The EFTs are known to be more affordable as compared to AEDOs and NAEDOs. However, they cannot track a customer account/credit card for the period of 32 days. Funds making way to the account within these 32 days would be reserved for collection by the party that opens the debit.
A micro lender can highly benefit from NAEDO because they require dealing with customers who don’t have cash ready within their accounts specifically during the dates of debit collection. On the other hand, a service provider will prefer EFT debit order service because they uphold some leverage over customers via terminating or suspending service to get payment. The payment with service providers is made on monthly basis. Choice of the best debit order system will benefit the business in many ways.

Wednesday, 15 May 2013

Understanding Debit Order Collection

Businesses usually rely on dedicated staff to catch up with their clients. A special section is dedicated to make settlements with clients. However, smart businesses work differently. They integrate latest and efficient technology to cut down on administration staff and encourage significant improvements in cash flow. The task can be facilitated through a Debit Order service. Integrating this service into business will help you a lot.
Many businesses these days are not aware of benefits of using debit order facility. The system is very efficacious when it comes to extracting cash from debtors. All one needs to do is select an appropriate Debit Order Collection system that suits specific business needs.

The debit order service is a kind of instruction offered by owner of credit card or bank account. The instruction is basically given to a business to recover capital straight from their bank account. The most commonly preferred method for giving capital recovery instruction is a written or verbal directive. These days, customers prefer digitally signed mandates as practical options.

Presently, debit order collection facility is available in a number of countries including Brazil, Netherlands, Switzerland, South Africa, Germany, Spain, and United Kingdom. The direct debits are generally developed keeping in mind certain rules and regulations of each nation. The domestic transactions running within a specific nation also regulate debit order system. Hence, it is obligatory for any direct debit instruction to be backed up by an authoritative body. This facilitates the payee to recover funds from payer’s bank account.

Integrating a debit order collection system into business is very beneficial. Apart from ensuring efficiency in client dealing, streamlining the process of payments and client follow up, it also saves on administration staff expenses for a business. 

Friday, 5 April 2013

Debit order system is unique

You must be wondering that what debit order system is. So friends I must tell you that it is a facility that is provided by every bank all over the world for debiting someone’s account without any formalities. It is being used by people who have some expenses on monthly, yearly or quarterly basis like premiums, loan installments and EMI’s. Usually a person does not have time to pay debts during office hours and on weekends the office and banks remains closed. It also happens that due to lot of work load people forget to pay premiums of insurance policy. So now, you can make your life easy by obtaining debit order system. It is a convenient way of paying debts without any hard cash flow. It is unsafe to carry large amount of hard cash with you everywhere, so debit order procedure makes things possible for third party as well as for you.

No need to waste time in bank, just give a telephonic mandate or an application in the bank regarding monthly premium payment to the particular third party. The bank will automatically transfer the amount from your account to the account of third party electronically.

This is a very safe system and allows a person to keep a check on expenses. You can regulate your budget very nicely by this system. Every debit amount details will be sent to your cell phone or mail id for records. At any point of time you want to stop the facility, then give an application or mail to the customer support and all debit order permissions will be closed.