With the innovations being introduced in payment methods, the processing fees charged is also getting higher every each passing day. Eventually many methods have come up like checks, credit cards, debit cards, ACH, and the like but all these methods involve a lot of processing fee and most of them are dependent on the size of the transaction. Only a smart merchant would have the capability of weighing all the advantages and disadvantages attached with each method and adopt the perfect method that is suitable when it comes to the safety and also has low processing cost. Direct Debit is one such method and one of the well-known and best service providers is SmartDebit.
Besides reducing the processing costs, a merchant must also consider the convenience of the customers. Choosing SmartDebit is considered as advantageous to both customers as well as organisations because it has a very simple processing mechanism once you have started to transact with this service provider. The payment in this method is directly withdrawn from the customer's bank, and now customers need not write paper checks to make payments. Basically it is an eco-friendly method that is eliminating the usage of paper and can also be regarded as the next step to the EFT (Electronic Funds Transfer) method.
Typically merchants who need to receive payments on a recurring basis use this method of SmartDebit because once the customer signs the authority letter then the payment would be received on a regular basis without waiting for the consent from the customer. It is also popularly used for e-commerce facilities wherein customers will directly check the products on the website and make payment immediately through secure gateways using their savings account. There would be no requirement of customers possessing credit or debit card, and even they will be saved from paying high fees that is generally charged with the processing of debit or credit cards.
The movement of funds in SmartDebit is via ACH, and the funds get transferred from one account to another bank account. Direct debit is ideal for regular business transactions, for receiving online payments, recurring payments, among others. The transaction fee is not dependent on the size of the transaction unlike other methods of receiving payments. The rate is flat for all the transactions and this makes it even more advantageous, and encourages you to improve the frequency of cash flow in the company by reducing the cycle of receiving payments. Processing a direct debit transaction is thus much less expensive than other methods of receiving payment.
SmartDebit: The Preferred Method of Receiving Payments