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Atricle Dump - Reduce Payment Processing Costs by Converting Debit-Card Customers to Direct-Debit Payments
Offshore companies or International Business Companies (also known as IBCs) are ‘distinct legal entities’ – what this means is that they can be treated to all intents and purposes like an individual.This means they can do business and be taxed for example, in fact they can do pretty much everything apart from have feelings or be loved!But what’s the point of an offshore company?Well, residents of high tax countries such as America of the United Kingdom for example can sometimes use an offshore company structure and route their income or profits through it to reduce their own personal taxation for example.The reason the company is established in an ‘offshore’ jurisdiction is because such locations are low or no tax, and as long as the company in question does not enter into any business in the juri
Another concern is that customers will not be comfortable with giving a merchant direct access to their bank accounts. However, that is essentially what they are doing with a debit card transaction. The problem truly is one of education not of security or of process. Fortunately, that is an easy problem to solve. ElectronicPayments.org is a fantastic website that provides a wealth of customer education materials. Your payment processing company may also offer free marketing and educational literature that can be distributed to your customers.
The Bottom Line
Direct-debit transactions are just as safe as or safer than debit card transactions. Direct-debit and debit card funds are deducted immediately from customer accounts. Direct-debit transactions are just as simple to perform as debit card transactions, and both can be used for auto recurring payments, online p
During the past 10 years I have had the good fortune to coach a number of good clients. About 17 percent of the individuals who have entrusted themselves to me have been Chief Executives or Main Board Directors of corporations with turnovers counted in the hundreds of millions.Coaching is like most other businesses in that the coach needs to keep learning and progressing in order to stay up with the game. One of the most valuable sources of knowledge is one’s clients.This is especially true when you are coaching people who are already very successful. You notice what they do and how they think and adopt some of their best traits into your coaching toolkit.There is one really noticeable difference between highly successful executives and those I would term “ordinary managers.” They are prepared to act and
This article will help merchants do this by comparing two very similar payment methods—debit card charges and bank account ACH direct-debits. It will explain how switching customers who pay with debit-cards to direct-debit transactions can significantly reduce merchant processing costs.
What is a Debit Card?
A debit card is a bank issued card that allows its user to access the funds in his account to pay for merchandise or services. A debit card acts like a credit card, and is often associated with a credit card brand such as VISA or MasterCard, with the difference being that funds are immediately deducted from the cardholders checking or savings accounts when a purchase is made.
What is Direct-Debit?
Direct debit is an easy way to deduct a payment directly from a customer’s bank account. It uses the premise of a paper check but takes it to the next level with electronic funds transfer. With direct debit, the need to write paper checks is completely eliminated. Your customer simply gives you permission to take funds directly out of his checking or savings account and transfer them to yours. Direct-debit is typically used for auto-recurring billing of regular transactions, such as a monthly rent payment, so that written permission to transfer funds is needed only once and customers no longer need to write checks every month. But, it can also be used with an Online Payment Gateway to enable your customers to purchase your products or pay their bills directly from a checking or savings account instead of with a credit card or debit card.
What are the differences between a Debit Card transaction and a Direct-Debit transaction?
Debit card transactions and direct debit transactions are at their core the same—each authorizes a transfer of money directly from the cardholder’s account to the merchant’s account. And, from the consumer’s standpoint they are exactly the same.
From the merchant’s standpoint however, they are very different. The transactions are processed through different networks, and the payment processing charges differ significantly.
Debit card transactions require the merchant to obtain a credit card merchant account and often to sign a long-term contract and pay a fee to open the account. Debit card transactions are processed through the same network as credit card transactions, and funds are deposited, less a commission (known as the “discount rate”), into a merchant account. The discount rate for debit-card purchases is typically lower than for credit card purchases (This is because the bank is taking less of a risk with a debit-card that deducts funds immediately from a bank account than with a credit card.), however there are some merchant processors that do not extend this discount to their clients. Typically, 2-3% of the transaction plus a 30 cent inquiry fee will be deducted from a debit-card payment and the balance will be deposited into the merchant’s account.
Direct-debit transactions use the Automated Clearing House (ACH) network to move funds from one bank account to another. Thus, you can use your regular business checking account for Direct-Debit transactions. You will need to sign a contract with a company authorized to manage these ACH transactions, but there is typically no long-term commitment. You will pay a fee for each direct-debit transaction you process—but it is typically a flat-fee that is not dependant upon the size of the transaction. (There are some companies that do charge a percentage based fee for direct-debit transactions—you should avoid these processors!). This fee is typically less than $1 per transaction.
How much can merchants save with Direct-Debit transactions?
Accepting direct-debit instead of debit-card transactions can generate significant savings for most transactions; with the rule of thumb being the larger the transaction amount the more the merchant saves. The following is a simple example using the PaySimple pricing structure:
Transaction Amount: $500
Cost to process via Debit Card (MOTO rate): $10.24 ($0.29 inquiry + 1.99% discount rate)
Cost to process via Direct-Debit: $0.55 flat
Total Savings per Transaction: $9.69
Total Monthly Savings (based on 250 transactions/month): $2,422.50
Are there drawbacks to Direct-Debit transactions?
The largest drawback for merchants accepting direct-debit payments is that unlike debit-card payments, you will not immediately know if there are sufficient funds in the customer’s account to cover the charge. With a direct-debit, you will get NSF notification in 24 hours (far better than the weeks it typically takes for a paper check processed by the bank). This can be a significant concern for merchants who are providing goods or one-time services at the time of payment. But, in the majority of cases, 24 hour notification is sufficient.
Another concern is that customers will not be comfortable with giving a merchant direct access to their bank accounts. However, that is essentially what they are doing with a debit card transaction. The problem truly is one of education not of security or of process. Fortunately, that is an easy problem to solve. ElectronicPayments.org is a fantastic website that provides a wealth of customer education materials. Your payment processing company may also offer free marketing and educational literature that can be distributed to your customers.
The Bottom Line
Direct-debit transactions are just as safe as or safer than debit card transactions. Direct-debit and debit card funds are deducted immediately from customer accounts. Direct-debit transactions are just as simple to perform as debit card transactions, and both can be used for auto recurring payments, online pa
Imagine your blood racing as the previously closed doors of the executive suites magically open … because you know the secret words.The words that establish trust, build your credibility as the authority, and compel the decision maker to meet with you and only you.The words that get you face-to-face, high-level meetings, trim weeks off of the sales cycle and add tens of thousands of dollars to the size of the contract. Words that repeatedly level the playing field and position you as equal to your executive-level prospects.Words That Keep Gatekeepers From Asking Annoying QuestionsLike, "Who are you?" "Don't you know, he doesn't handle that sort of thing?" and "Could you send me something in writing?"To really "get" the power of the words you gotta know that your high-level prospects are co
Direct debit is an easy way to deduct a payment directly from a customer’s bank account. It uses the premise of a paper check but takes it to the next level with electronic funds transfer. With direct debit, the need to write paper checks is completely eliminated. Your customer simply gives you permission to take funds directly out of his checking or savings account and transfer them to yours. Direct-debit is typically used for auto-recurring billing of regular transactions, such as a monthly rent payment, so that written permission to transfer funds is needed only once and customers no longer need to write checks every month. But, it can also be used with an Online Payment Gateway to enable your customers to purchase your products or pay their bills directly from a checking or savings account instead of with a credit card or debit card.
What are the differences between a Debit Card transaction and a Direct-Debit transaction?
Debit card transactions and direct debit transactions are at their core the same—each authorizes a transfer of money directly from the cardholder’s account to the merchant’s account. And, from the consumer’s standpoint they are exactly the same.
From the merchant’s standpoint however, they are very different. The transactions are processed through different networks, and the payment processing charges differ significantly.
Debit card transactions require the merchant to obtain a credit card merchant account and often to sign a long-term contract and pay a fee to open the account. Debit card transactions are processed through the same network as credit card transactions, and funds are deposited, less a commission (known as the “discount rate”), into a merchant account. The discount rate for debit-card purchases is typically lower than for credit card purchases (This is because the bank is taking less of a risk with a debit-card that deducts funds immediately from a bank account than with a credit card.), however there are some merchant processors that do not extend this discount to their clients. Typically, 2-3% of the transaction plus a 30 cent inquiry fee will be deducted from a debit-card payment and the balance will be deposited into the merchant’s account.
Direct-debit transactions use the Automated Clearing House (ACH) network to move funds from one bank account to another. Thus, you can use your regular business checking account for Direct-Debit transactions. You will need to sign a contract with a company authorized to manage these ACH transactions, but there is typically no long-term commitment. You will pay a fee for each direct-debit transaction you process—but it is typically a flat-fee that is not dependant upon the size of the transaction. (There are some companies that do charge a percentage based fee for direct-debit transactions—you should avoid these processors!). This fee is typically less than $1 per transaction.
How much can merchants save with Direct-Debit transactions?
Accepting direct-debit instead of debit-card transactions can generate significant savings for most transactions; with the rule of thumb being the larger the transaction amount the more the merchant saves. The following is a simple example using the PaySimple pricing structure:
Transaction Amount: $500
Cost to process via Debit Card (MOTO rate): $10.24 ($0.29 inquiry + 1.99% discount rate)
Cost to process via Direct-Debit: $0.55 flat
Total Savings per Transaction: $9.69
Total Monthly Savings (based on 250 transactions/month): $2,422.50
Are there drawbacks to Direct-Debit transactions?
The largest drawback for merchants accepting direct-debit payments is that unlike debit-card payments, you will not immediately know if there are sufficient funds in the customer’s account to cover the charge. With a direct-debit, you will get NSF notification in 24 hours (far better than the weeks it typically takes for a paper check processed by the bank). This can be a significant concern for merchants who are providing goods or one-time services at the time of payment. But, in the majority of cases, 24 hour notification is sufficient.
Another concern is that customers will not be comfortable with giving a merchant direct access to their bank accounts. However, that is essentially what they are doing with a debit card transaction. The problem truly is one of education not of security or of process. Fortunately, that is an easy problem to solve. ElectronicPayments.org is a fantastic website that provides a wealth of customer education materials. Your payment processing company may also offer free marketing and educational literature that can be distributed to your customers.
The Bottom Line
Direct-debit transactions are just as safe as or safer than debit card transactions. Direct-debit and debit card funds are deducted immediately from customer accounts. Direct-debit transactions are just as simple to perform as debit card transactions, and both can be used for auto recurring payments, online p
With the augmentation and continuous style enhancement, it is vital that you take care of your Gucci watch. If you're going to be spending near a thousand dollars on a watch, and possibly more, you want to make sure it gets treated regularly and is taken care of. Here are 6 tips to help you care for your Gucci watch the way it needs to be.1.) Bedtime. Many of the Gucci watches come with a scratch-resistance of some sort, but its better to be safe than sorry. When you take your watch off, try to always place it back in its case. This will avoid any accidents of it getting knocked over or spilled on by it setting on the counter.2.) Regular service trips. Although it's not near the same price, you want to look at your Gucci watch like you do your car. Regular service trips will help your watch maintain its hi
Debit card transactions require the merchant to obtain a credit card merchant account and often to sign a long-term contract and pay a fee to open the account. Debit card transactions are processed through the same network as credit card transactions, and funds are deposited, less a commission (known as the “discount rate”), into a merchant account. The discount rate for debit-card purchases is typically lower than for credit card purchases (This is because the bank is taking less of a risk with a debit-card that deducts funds immediately from a bank account than with a credit card.), however there are some merchant processors that do not extend this discount to their clients. Typically, 2-3% of the transaction plus a 30 cent inquiry fee will be deducted from a debit-card payment and the balance will be deposited into the merchant’s account.
Direct-debit transactions use the Automated Clearing House (ACH) network to move funds from one bank account to another. Thus, you can use your regular business checking account for Direct-Debit transactions. You will need to sign a contract with a company authorized to manage these ACH transactions, but there is typically no long-term commitment. You will pay a fee for each direct-debit transaction you process—but it is typically a flat-fee that is not dependant upon the size of the transaction. (There are some companies that do charge a percentage based fee for direct-debit transactions—you should avoid these processors!). This fee is typically less than $1 per transaction.
How much can merchants save with Direct-Debit transactions?
Accepting direct-debit instead of debit-card transactions can generate significant savings for most transactions; with the rule of thumb being the larger the transaction amount the more the merchant saves. The following is a simple example using the PaySimple pricing structure:
Transaction Amount: $500
Cost to process via Debit Card (MOTO rate): $10.24 ($0.29 inquiry + 1.99% discount rate)
Cost to process via Direct-Debit: $0.55 flat
Total Savings per Transaction: $9.69
Total Monthly Savings (based on 250 transactions/month): $2,422.50
Are there drawbacks to Direct-Debit transactions?
The largest drawback for merchants accepting direct-debit payments is that unlike debit-card payments, you will not immediately know if there are sufficient funds in the customer’s account to cover the charge. With a direct-debit, you will get NSF notification in 24 hours (far better than the weeks it typically takes for a paper check processed by the bank). This can be a significant concern for merchants who are providing goods or one-time services at the time of payment. But, in the majority of cases, 24 hour notification is sufficient.
Another concern is that customers will not be comfortable with giving a merchant direct access to their bank accounts. However, that is essentially what they are doing with a debit card transaction. The problem truly is one of education not of security or of process. Fortunately, that is an easy problem to solve. ElectronicPayments.org is a fantastic website that provides a wealth of customer education materials. Your payment processing company may also offer free marketing and educational literature that can be distributed to your customers.
The Bottom Line
Direct-debit transactions are just as safe as or safer than debit card transactions. Direct-debit and debit card funds are deducted immediately from customer accounts. Direct-debit transactions are just as simple to perform as debit card transactions, and both can be used for auto recurring payments, online p
The goal of most businesses is to profit and give out the best products and services that they can offer to customers. For companies who manufacture sellable items, producing the end product is not the final step. You already know that your products will sell. The next thing that you need to do is deliver the products either to the stores or straight to your customer’s doorstep. This is where order fulfillment services come in. Companies, either big or small, usually obtain the services of a third-party order fulfillment company. This way, they can concentrate mainly on the manufacturing process and let the order fulfillment companies do their job. This would make for a more efficient running of your business organization. The key here is to get the orders right the first time. Choose a company which fits your company’s orde
How much can merchants save with Direct-Debit transactions?
Accepting direct-debit instead of debit-card transactions can generate significant savings for most transactions; with the rule of thumb being the larger the transaction amount the more the merchant saves. The following is a simple example using the PaySimple pricing structure:
Transaction Amount: $500
Cost to process via Debit Card (MOTO rate): $10.24 ($0.29 inquiry + 1.99% discount rate)
Cost to process via Direct-Debit: $0.55 flat
Total Savings per Transaction: $9.69
Total Monthly Savings (based on 250 transactions/month): $2,422.50
Are there drawbacks to Direct-Debit transactions?
The largest drawback for merchants accepting direct-debit payments is that unlike debit-card payments, you will not immediately know if there are sufficient funds in the customer’s account to cover the charge. With a direct-debit, you will get NSF notification in 24 hours (far better than the weeks it typically takes for a paper check processed by the bank). This can be a significant concern for merchants who are providing goods or one-time services at the time of payment. But, in the majority of cases, 24 hour notification is sufficient.
Another concern is that customers will not be comfortable with giving a merchant direct access to their bank accounts. However, that is essentially what they are doing with a debit card transaction. The problem truly is one of education not of security or of process. Fortunately, that is an easy problem to solve. ElectronicPayments.org is a fantastic website that provides a wealth of customer education materials. Your payment processing company may also offer free marketing and educational literature that can be distributed to your customers.
The Bottom Line
Direct-debit transactions are just as safe as or safer than debit card transactions. Direct-debit and debit card funds are deducted immediately from customer accounts. Direct-debit transactions are just as simple to perform as debit card transactions, and both can be used for auto recurring payments, online p
Simply put, a vision statement allows others to know what your vision for your company is. Where do you want your company to go? What is your company’s ultimate goal? To help put together your vision statement take the time to close your eyes and think about what your company will look like in 5 years. The picture you have created is your vision and will work towards developing your vision statement.When asked by others what your vision statement is, are you providing them with an answer that truly allows them to envision that picture you are working to create? Will that picture tell them where you ultimately are headed with your business?Keep in mind that how you word your statement can mean the difference between excitement and pure boredom on the part of your potential clients, investors and others that will
Another concern is that customers will not be comfortable with giving a merchant direct access to their bank accounts. However, that is essentially what they are doing with a debit card transaction. The problem truly is one of education not of security or of process. Fortunately, that is an easy problem to solve. ElectronicPayments.org is a fantastic website that provides a wealth of customer education materials. Your payment processing company may also offer free marketing and educational literature that can be distributed to your customers.
The Bottom Line
Direct-debit transactions are just as safe as or safer than debit card transactions. Direct-debit and debit card funds are deducted immediately from customer accounts. Direct-debit transactions are just as simple to perform as debit card transactions, and both can be used for auto recurring payments, online payments, phone payments, and point-of-purchase payments. But, processing direct-debit transactions is significantly less costly for merchants than processing debit card transactions.
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