A debit order facility enables a companies to collect payments directly out of a client’s bank account. Debit order collections are typically used for monthly collections on services such as insurance policies, subscription services, gym memberships, utilities, etc. and can be set up for fixed or varying monthly amounts.
Using a debit order collection system in order to receive recurring payments from clients has many benefits for a business. Some of these include:
Increased Cash Flow
By implementing a debit order system a company gains greater control over their cash flow because they are in charge of when payment is collected from a client. They do not have to wait on the client to make the payment and by drawing the payment directly out of the client’s bank account they are more likely to successfully retrieve the payment on time.
Eliminate the Risk of Cash
Receiving payment in cash can often be difficult and risky process. Moving large amounts of cash around can be expensive as it requires high levels of security and administration. Cash is also constantly vulnerable to being stolen, lost or damaged. Debit orders on the other hand are all done electronically, they are easily administered and tracked with no risk of payment being lost or damaged.
Better budget planning
A company that uses a debit order system is able to plan their budget more efficiently because that have a much better idea of what payments they will be receiving when. Since the company is initiating the payment, and not the client, they do not need to worry about late payments and can therefore budget and plan their expenses better.
Easier administration of payments
A debit order system allows companies to fully automate their debtors process so that they can easily request payment, reconcile, and take action against unpaid accounts. It can also be integrated with the company’s existing accounting system for increased ease and efficiency.
Considering all these benefits it is easy to see why debit order systems are the preferred method for many companies to receive recurring payments.
MyGate’s debit order solution is an online based system that enables companies to process debit order collections regularly from bank accounts. The debit solution includes debit order setup facilities, bank modulus checking, automated collections, full payment administration and comprehensive reconciliation reporting – all operated online and accessible by the MyGate Web Console.
A wide range of debit order collection management tools, features and reporting come standard to our clients to use for managing debit orders. We believe in providing superior customer service to our debit order customers and work to ensure queries are handled and resolved quickly.
Our in house solution includes:
- MyGate Web Console – (Used to manage your debit order collections)
- Account Verification – (Integrated bank account verification tool)
- Account Validation- (Performs modulus bank account checks)
- In depth Collection Reporting – (Easy access to financial reporting)
- Client Management Interface (Create, manage and debit customers)
MyGate manages all aspects of the MyGate Web Console and debit order technology and the site is securely hosted using Secure Socket Layer (SSL) ensuring that all data is transmitted securely. All debit order data is stored securely in MyGate’s hosted data centre which is PCI compliant. Debit Orders are submitted directly from our secure environment to the banks ensuring upmost security at all times.