The rise of non-cash payments is prolific, and direct debit is a core part of that growth. Consumers are excited about the convenience and security benefits direct debit can offer. However, some misconceptions about direct debit still exist. Here are the five most common myths about direct debit.
1). Direct debit is unsafe
Considering the increasing scope and sophistication of modern cyber security threats, it’s understandable that many businesses are concerned about the security and safety of their payment processing options. Direct debit is a highly secure and reliable payment platform, particularly when you are using a direct debit software provider that is Level 1 PCI Compliant.
2). Direct debit requires a lot of paperwork and manual processing
In the past, direct debit has been reliant on paper forms and manual processes. Today, you should look for a direct debit platform that is streamlined and automated, with the ability to have customers input their details online.
For example, with Ezidebit, customer payments automatically begin on a pre-selected date with minimal input from the consumer or the business. As a result, both parties are able to save time and improve productivity.
3). Consumers don’t like signing a direct debit agreement
Some businesses believe consumers will be unwilling to sign into a direct debit agreement due to the regular ongoing payments being processed without their input.However when using direct debit the consumer always remains in control.
Direct debit saves time and offers peace of mind when it comes to making time-sensitive payments. Automated payments avoid late fees that can lead to weakened customer relationships and increased customer churn.
4). Direct debit is rigid and inflexible
Direct debit platforms should allow adjustments of payment terms throughout the life of your business relationship. This means you are free to work with your customers to develop a payment schedule that suits you and your customers. This allows you focus on building relationships, not managing recurring transactions.
5). Direct Debit is costly and difficult to set up
When setting up a direct debit platform, it is important to consider the opportunity cost of not offering direct debit – inconsistent cash flow and reduced customer satisfaction. You can calculate the impact of increasing the amount of your customers on direct debit with Ezidebit’s simple cash flow calculator.
Interested in learning more about payment processing and direct debit? Get your copy of our free guide, Automated Payment Processing for Your Fitness Business.
Guest post written by Ezidebit
Ezidebit is Australia and New Zealand’s number one non-bank payment provider, helping businesses of all sizes automate their customer payments, improve their cash flow and create a reliable recurring revenue stream. Offering direct debit, BPAY and e-commerce solutions that are easy-to-use, streamlined and powerful, providing you with the freedom to focus on what’s important – growing your business.