What is Direct Debit?

Direct debit is the electronic transfer and collection of receivables from your customer's bank account anywhere in the U.S. through the Automated Clearing House (ACH) system.

How does Direct Debit work?

• You receive authorization from your customer to collect their payments using direct debit.
• You create a file through ACH software.
• We process the ACH file based on your instructions.
• Your customer's payment is withdrawn automatically from their account at the opening of business on the day they authorize.
• Your account is credited for the total file amount which is immediately available as cash.

Benefits of Direct Debit

• Reduce the costs of collecting, depositing, and reconciling checks.
• Stop waiting for balances to become available, as with traditional deposits.
• Forecast cash flow more accurately.
• Eliminate the possibility of lost, delayed, stolen, and forged checks.
• Increase customer retention since customers who are set up to make payments electronically are less likely to move their business elsewhere.
• Provide service that your customers have come to expect from you.

Which businesses should use Direct Debit?

• Businesses who want to streamline the receivables function and reduce paperwork.
• Businesses who want to eliminate costs associated with collecting and depositing customer payments.
• Businesses who have recurring monthly payments from the same customers.