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Digg it UP - Reduce Payment Processing Costs by Converting Debit-Card Customers to Direct-Debit Payments
The ability to make the right decision at the right time is the most desired quality in any business entrepreneur. And there are certain business decisions that can take your entrepreneurial ambitions further ahead than others. The decision to incorporate your business is one such decision that can affect the future of your business in a positive direction.Before explaining several benefits of incorporation, let us give you the definition of corporation from a legal point of view. A corporation is regarded as a separate legal entity, whose existence is independent of that of its owners. The process of incorporation is guided by the charter or certificate of incorporation of the respective states. To incorporate a business, you have to fill out the forms for this Charter and file all the papers along with the requisite
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 deducte
We are a law firm which means you have attorney client privilege – We specialize in Offshore Asset Protection. All of your affairs handled with us are covered by attorney client privilege which means that we could not reveal anything about you or your affairs without your specific permission or unless we were ordered to do so by a Panama Court (not a common occurrence). You can benefit from the legal protection and security of dealing with a licensed Panama Law Firm. If you buy an offshore corporation, offshore trust, offshore foundation or an offshore bank account from a non- law firm they could freely reveal your confidential information which they collect from you like name address, passport, name of corporation, bank account information etc. without any statutory penalties, in other words you do not have the benefit of a
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
When faced with the challenge of trying to find out information on companies, industries and sectors with no starting point (and often through stealth), there can be a tendency to believe that this ‘new’ knowledge does not come free. Yes, sometimes the answer is to buy a pre-written report, or pay to subscribe to certain data sources; however, these rarely give you the full picture and can you justify spending what can be big money on a report that you can’t ‘try before you buy’? I find it satisfying to get this information free and often employ some of the methods outlined below, which unearth some gems that no report will give you. 1) Search Smart There is a wealth of knowledge to be found on the internet, but sometimes searches need a nudge in the right direction. If you’re looking
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 deducte
It has never been an easier task than getting your hands on a preschool job! That is if you are performing a good online job search. The Internet is full of job opportunities, that almost all of us can find an opening that suits his or her needs.Looking at the advantages for both the employers and the employees, the first one to be mentioned is the fact that finding potential employees or employers in this manner saves a lot of time and money! Employers can post preschool job listings any day of the week, and job hunters no longer have to buy the paper, for instance and drop off resumes.It is a commonly accepted fact that it takes less time and effort to look for an online preschool job. You can find new openings all over the world and then submit your resume without anything more than a mouse click. If they ar
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 deducte
Once you have several products or services that are selling quite well, your customer will begin to ask if you will permit others to use your product as the basis for training that they are doing. Or, if you are doing training or consulting, you may be asked if you'll train others to be a trainer using your system.This is the perfect opportunity for you to consider licensing your content or program. You've only got so many hours in the day, and if you have others delivering your content and/or requiring the purchase of your materials, your business will grow exponentially as a result.Here are some issues to think about as you consider licensing your content to others:1. What will you charge for a licensing fee? Will it be a one-time fee or something that has to be renewed periodically, like on an ann
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 deducte
The cost of building ground got crazy because of Euro 2012.According to analysts, the growth of value of building grounds is temporary and anybody who is about to purchase the land should wait through this fever.Within few days, just after announcing Poland as one of the host nations of EURO 2012, the price of building ground near Wroclaw jumped to 20 per cent.The growth of the value mainly concerns the grounds intended for investments. The vendors count on the fact that there are companies, connected with EURO, which will be willing to build e.g. new hotels. However, according to the president of WGN, investors being interested in the plots should wait through temporary fever, as sooner or later the cost of these grounds will be cut down to the current level.''The prices of the grounds may raise
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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