Direct debit service is one in which the service provider provides the technology to draw amounts from the debtors account with consent of both the parties. The amount of payment may differ every time, but there is a standing authorization from the debtor to draw the amount from his bank account.
Direct debit services are predominantly available in countries where authorization process is easy and is mostly available only for domestic transactions. The payer can cancel direct debit at any time and the banker can decline to carry out direct debit if the transaction breaches the terms of bank account from which the amount is to be drawn.
Many people tend to confuse direct debit service with direct deposit or standing order instruction. While standing order instruction involves payment of fixed amount of money at fixed interval, amounts and period in direct debit service are variable and may differ in every transaction.
What type of businesses can benefit from direct debit service?
Businesses where collection of payment is regular but amount and payment duration may differ can greatly benefit from direct debit services. Direct debit services can be used for recurring payments like credit card bills, utility payments, installment payments, rent payments, and many others.
Direct debit services like Payleadr are very popular in countries like Australia, USA, UK and Europe. While systems may differ from one country to another, basic concept of direct debit service remains the same. It is mainly beneficial for small business enterprises that remain short of cash flow in all of its life cycle, as use of these services ensure realization of payments from their debtors at regular intervals saving them from bad debts and overdue payments for a nominal fee that they charge for their services.
Why should you choose direct debit service instead of other payment realization services?
Direct debit services like Payleadr are very convenient, cheap and a sure shot way of realizing payments for small businesses where business owners cannot afford expensive and professionals to realize their payments. Also, small business owners have little expertise in accounting and cannot afford professional accountants leaving their business to the mercy of debtors and their personal skill.
Therefore, while other methods may not be convenient for both parties, direct debit services are convenient for both parties as the debtor can pay his outstanding in regular installments according to his convenience, the creditor can realize his payments without much effort at a very nominal cost as compared to hiring a professional for same work.
Are cheap direct debit services good?
Performance of direct debit services depends upon the infrastructure that they have developed for running their services. Click here for Payleadr cheapest direct debit service as it is very experienced and provides services using the best technology and talent in the field.
All direct debit services charge some fee for their services, but Payleadr are one of the cheapest direct debit services in Australia that are offering best services for a very nominal amount. They are very user friendly and easy to install, plus their user interface is very easy for customers and business owners as well.
