A method of collecting consumer payments known as direct debit, often referred to as direct withdrawal or ACH, involves taking money straight out of your client’s bank account as opposed to processing their payment through a credit card. One of the most often used methods of accepting payments for companies that offer services is ACH.
While credit card processing prices can vary greatly based on a variety of criteria specific to your business, direct debit processing fees are typically paid as a fixed rate.
To decide which course would best position your company for expansion and success, you need to consider your alternatives and your particular business strategy.
- Health, Fitness & Exercise Centers
The most stressful times of the month, according to many owners of fitness businesses, is when dues are collected. They are troubled by their clients’ justifications for why they can’t pay, “right now,” and maybe that they’ll be able to pay, “in a few more days.” Frequently, days drag by and they are left waiting for money forever.
- Legal Practices & Law Firms
It can be challenging to manage the retainers that law firms and legal practices utilize. Processing credit cards might be more expensive than setting up monthly wire payments from customer bank accounts.
Law firms may save a lot of money on wire fees by collecting monthly retainers by direct debit providers at Payleadr and they can use automated repeating payments to ensure that monthly retainer payments are made on time, every time.
- General and Freelance Contractors
Large-scale projects are common for freelancers and contractors. Websites may quickly set you back hundreds of dollars, and ordinary construction jobs can cost anything from $10 to $100 or more. There is no better method for handling these large-ticket transactions than direct debit.
The benefit of direct debit is that it costs just $0.55 every transaction, regardless of dollar size, as opposed to credit card processing fees and wire transfer fees, which may quickly pile up.
An easy recurring payment plan may be created to avoid fees being charged to payments exceeding $5,000. Freelancers and contractors can pass on this flexibility to their clients in order to meet a range of payment schedule requirements.
- Landlords & Property Management Companies
For property management organizations, it can be quite worrying when the schedule of rent payments is continuously changing. Property management firms do not have the luxury of collecting on Net 30 and Net 60 periods, in contrast to huge manufacturing and industrial corporations.
There is no better option than auto-recurring direct debit when the financial security of a company depends on on-time payments.
The procedure of enrolling renters in auto-recurring billing is as easy as completing an online payment form. This document gives the property management business permission to automatically deduct the monthly rent payment on a specified day.
Day Care & Childcare Facilities
It takes a lot of time to run a childcare center. One of the last things childcare facility managers have time and energy for while rushing around after kids all day is finding parents who are not paying their monthly daycare fees on time.
However, if customers aren’t paying, cash flow becomes erratic and might put a company in danger. The clients’ bank accounts are automatically debited on a monthly basis through direct debit.