Small businesses are always in need of reliable methods for payment collection. A recent report published by the Australian Securities and Investments Commission shows that about 50 percent of the insolvency case cropped up due to reduced flow of cash or high cash usage. Thus, it testifies the fact that poor cash flow is a crucial concern for several Australian business owners.
What is direct debit?
You have probably heard of the direct debit method but don’t know how it works. It is the simplest and safest means of securing regular and recurrent payments which are used for payment of utility bills and council tax.
In the direct debit method, the consumers authorize the service providers for collecting payments from the user’s account as the money is due. The consumers are required to fill out a form that can be completed online as well. With the completion of this procedure, service providers can automatically secure payments from the account as they comply with the regulations of the scheme.
How to select the best direct debit platform?
Modern life is very fast and hectic. Direct debit is one of the best ways to save time and enjoy convenience. It takes off the issues related to securing payments from the consumers so that you can pay attention to important operations for the business. So let’s find out what makes a good direct debit platform:
Appropriate payment flow: With the growth of the business, the e-commerce venture should be able to scale up through the way. A good direct debit platform for business allows you to receive payment through a secured getaway. This may enhance the operational procedure owing to additional programming.
Choosing the right product and services: When you are selling products and services online, it’s important to have a highly adaptable direct debit platform. So, before you opt for any direct debit platform, make sure that it is convenient, flexible, and highly adaptable.
Safety and security of the consumers: Even if you are running a startup or a small business, your consumers will expect high-end services. One of these services includes an ultra-secure payment platform. Make sure that the direct debit platform you select is certified for security standards such as PCI-DSS.
Consider service agreement requirement: Pricing for the direct debit platform is based on the kinds of transactions conducted by the business. This may be in-person and online, revenue consistency, business sales, and others. Some of these platforms also charge for transaction fees when a certain order or volume falls short of a stipulated amount.
Effortless checkout on all devices: In the last 2 to 3 years, more than 15 percent of e-commerce sales have taken place on smartphones. As you evaluate the payment platform, make sure that the consumers receive a working checkout result across all mobile devices for each direct debit transaction.
Depending on your business, it’s suggested that the direct debit platform you choose offers a number of features for the business as well as the consumers. It also impacts the level of efficiency of the business and helps in enhancing your business to a great extent.