There are many types of online payment solutions and there are a number of ways to implement them. One of them, direct debit, seems to work for specific types of businesses better than other types of payments. If you are wondering just what direct debit is, this is when you directly debit the customer’s account either through the use of a bank card or via an ongoing fee. While this is not as common for e-commerce sites, the use of direct debit for certain types of businesses has been growing. Here are a few good examples of the type of business that might benefit from considering direct debit.
Spas, Gyms and Health Centers
These are all businesses that tend to have monthly fees, and these can add up if you are paying a service fee for each of these transactions. If your customers choose to use their credit card for the payment, you may be doing just that. However, when you debit their account directly each month, that fee can be reduced as you only pay one monthly fee for the use of the direct debit accounting system. When you combine this with your online payment solutions as a direct debit via your website, you save even more. For any kind of monthly fee business, using direct debit as opposed to a credit card can add to significant savings in the long run. Best of all you don’t have to push your client to remember to pay their monthly dues, as it will come out of their account automatically each month.
Legal Firms and Monthly Retainers
As any law firm will tell you, taking care of monthly billing for those pesky retainers can take up a lot of time and effort. In addition, they can put a strain on the client relationships. It used to be that wire transfers would often be used to ensure the timely arrival of these monthly retainers, but a smart use of an online payment solution such as a direct debit system can be not only faster but less costly. In addition, when they are set up ahead of time law firms can move ahead with their work, knowing that the retainers will arrive on time and for the right amount.
Property Management Fees and Rentals
Working in the world of property management, you see every excuse under the sun for why that rent payment is late once again. It is almost a rule that in any apartment building a certain percentage of rentals will have late payments and those tenants will have to pay a late fee. But all of this could be avoided if the rentals are set up with a direct debit at the start of every month. Since there is no such thing as a “net 30” on an invoice for this month’s rent, late payments can cause huge financial difficulties for the landlord, no matter who it is. By introducing a monthly debit to their account the landlord has a few less things to worry about and the tenant doesn’t need to remember to send in that check.
So if you have any kind of a business that needs a monthly payment, debit direct may be your best solution. From newspaper subscriptions to monthly payments on that new car, a direct debit can make everyone’s life easier.