INTRODUCTION TO DIRECT DEBIT
Direct Debit is a Payments Association of South Africa (PASA) approved Third-Party Payment Provider (TPPP) and system operator and has been a leader in debit order collections in South Africa for more than a decade.
Direct Debit offers debit order collection facilities for the processing of both bank account and credit card debit orders. Their services include standard EFT debits, NAEDO, DebiCheck for Authenticated Collections, and Account Holder Verification Services (AVS).
Direct Debit is one of the first companies to offer DebiCheck collections in South Africa, making it an industry-leading debit order service provider. DebiCheck is set to replace NAEDO and reduce debit order fraud in the country.
Direct Debit offers a wide-ranging debit order system that will ensure that a business is empowered to manage and automate all debit order processing. A variety of contract management solutions with various levels of integration is also available to users.
Direct Debit recently launched the industry’s first electronic debit order mandate solution, called E-Mandate, which allows a customer to sign and authorize his debit orders from anywhere and on any device.
The E-Mandate answer will save businesses on costs and lengthy waiting periods linked with the signing of paper-based debit order agreements. The system is fully customizable and can be used as a comprehensive online signup solution that allows clients to order products and services via any website or application directly.
Direct debits, also called debit orders, are the easiest and most cost-effective way to collect payment from your debtors. As a debit order bureau, Direct Debit sets the standard for NAEDO and EFT debit order collection in South Africa.
Direct Debit offers a comprehensive debit order system solution, from initial instruction and account setup to the processing of debit orders and depositing the funds that were collected into your account.
Direct Debit makes use of a low-cost, transparent fee structure with highly competitive rates. Its focus is specifically on high-volume debit order processing.
The company’s debit order collections by EFT Debits are a way for a business to collect monthly fees from their customer’s bank account or credit card. It is typically used to collect monthly subscriptions, premiums, or repayments.
As a debit order collections company, Direct Debit offers a complete automated debit order collection software system to both small businesses and large enterprises, which enables the business owner to collect monthly payments from his customers without any manual intervention on Direct Debit’s cloud-based debit order system.
These systems also include a debit order application programming interface (API) for clients who want to process or reconcile debit order transactions through their systems.
Debit order collections are made possible via Bankserv Africa and PASA. Bankserv Africa developed a debit order processing system for daily clearing and settlement of debit orders and credit payments. The debit order collections and payment services are available to all approved businesses and enable fast and efficient processing of debit orders, account payments, and salaries.
Direct Debit offers both normal debit order (EFT debit order collections) and credit payment (EFT credit payment) facilities. The normal debit order facility provides the option for Two-Day transactions or Same-Day transactions. The Two-Day debit order transaction option needs to be submitted by 12:00 two business days before the day you want the debit order to be processed (the action date) while the Same-Day debit order transaction option needs to be submitted by 12:00 on the day you want the debit order to processed on (the action date).
Credit payment (EFT Credits) is a way for a business to pay creditors or employees every month. This is typically used to make payments for services obtained or once-off salaries, recurring or in-batch payments. As a debit order provider, Direct Debit also offers a credit payment system to both small businesses and large enterprises, which enables you to make monthly payments to your suppliers or employees on its cloud-based system. The systems also include a payments API for clients that want to process or reconcile credit payments through their systems.
The following banks allow businesses to process credit payment and debit orders to and from the bank account and are also considered the participating banks in the normal debit order collection and payment stream:
- ABSA Bank Debit Order
- African Bank Debit Order
- Investec Bank Debit Order
- Bidvest Bank Debit Order
- Mercantile Bank Debit Order
- First National Bank Debit Order
- Capitec Bank Debit Order
- Nedbank Debit Order
- Standard Bank Debit Order
HISTORY AND HEADQUARTERS OF DIRECT DEBIT
Direct Debit was established more than 10 years ago and has celebrated its 10 years of debit order collection and amazing fintech innovations like E-Mandate in that period.
The company head office is at Pegasus Building, 210 Amarand Avenue, Waterkloof Glen, Pretoria; with its Banking Office at 142 West Street, Sandton, Johannesburg.
SERVICES AND FEATURES OF DIRECT DEBIT
Direct Debit is a first-tier debit order collection service provider that facilitates debit order systems to accommodate several types of businesses in debit order collections. Systems include debit order collection file uploading, automation, and API integration, as well as other value-adding services.
Some of the services offered by Direct Debit and its features include.
Increasing cash flow
Debit order collection increases the cash flow of a business and ensures that the owner gets paid on his terms. That is why its online debit order system is perfect for enabling a business to take control of its cash flow.
A direct link to Bankserv
Direct Debit’s services are on an enterprise-class banking level and all clients do obtain a debit order facility directly with Bankserv, making Direct Debit one of only a few select first-tier bureaus in South Africa.
Convenient collections
The provided automated recurring debit order collection from customers ensures convenience for both the business and its customers since debit orders run automatically.
Flexible cut-off time
Regular batch submission deadlines are 12:00 daily except for a business’ integration system, debit order API, and web services which cater for cut-off times of 15:30.
Fast reconciliation
Direct integration with Bankserv results in accurate and fast reconciliation. Direct Debit fully reconciles every debit order collection batch as reconciliation is received from the respective banks.
Negotiable repayment
Direct Debit constantly monitors a merchant’s repayment terms and amends them as their collection rates improve. They also negotiate initial repayment terms.
Save on bank fees
Direct Debit reduces banking fees through professional consultation, direct integrations with the banking system, and customized solutions tailored to each business.
Complete automation
Integration with different debit order systems enables the merchant to automate the entire debit order collection process from initial signup to reconciliation of collection for each debtor.
EFT Debit and Credit
EFT debit orders and EFT credit payments are possible on Same Day (SDV) or Two-Day Debit Order Collections (2-Day) with a limit of R1 000 000 per debit instruction.
NAEDO Debit
NAEDO debits are available with a limit of R30 000 per debit instruction. NAEDO debits feature the ability to track debtors’ accounts to ensure that funds are collected.
Credit Cards debits
Recurring EFT debits (Same Day) from all major credit cards, including VISA, MasterCard, American Express, and Diners Club are supported, and PCI-compliant storage is provided.
Account Verification Service
Account Verification Service (AVS) is provided to verify clients’ banking details and whether an account allows for debits and credits. This service is available from Monday to Friday, from 08:00 to 16:00.
DebiCheck
DebiCheck (Authenticated Collections) integrates beautifully with the E-Mandate solution. DebiCheck will enable collectors to authenticate mandates upfront, reducing unpaid debts and disputes while providing the collector assurance.
E-Mandate
E-Mandate supports professional, flexible, electronic debit order agreements. E-Mandate allows customers to sign and authorize debit order transactions online and from any web-enabled device with initiate signing from the web, SMS, E-mail, or face-to-face.
SnapBill
SnapBill is a cloud invoicing and billing system that lets you easily sell online. It works perfectly for businesses that require automated subscription billing with debit order payment collection facilities, making it the perfect debit order system for Direct Debit.
PCI Compliance
Direct Debit’s PCI Vault offers Tokenisation as a Service (TaaS) combined with Entropy as a Service (EaaS) for extra quick enterprise-grade encryption of payment card data on demand. It safely and securely stores credit card data and automates debit order collection.
File Upload
It supports a web-based system, to be accessed with a username and password, to manually upload a CSV, XLSX, or XLS (Excel) batch file with a client’s banking details to the system for processing. Reconciliation of each transaction is given in report form.
Contract Management
This offers an automated debit order system where a client is loaded once from the system or the E-Mandate is signed, a contract is set up and from there the system automatically submits transactions for processing.
SaaS Billing
The SnapBill debit order system manages customer data, and batch collections and automates reconciliation where each invoice is matched automatically with a debit order payment received, whilst flexible invoicing solutions, reports, and statistics are provided.
Integration
You can connect your front-end system directly with a bank for the facilitation of debit order collections and reconciliation via a Representational state transfer (REST) based debit order API.
PRICING
Direct Debit offers different packages and pricing:
- A standard package debit order system cost R215 Monthly and includes Normal debit order, File upload system, Contract management, and API integration with an R349 once-off setup fee.
- Debit Order Collection is available at R595 Monthly and includes All types of debit orders, File upload system, Contract management, API integration, and Paper / Electronic mandates with an R349 once-off setup fee.
- A Complete Billing Invoicing System cost R1675 Monthly for All types of debit orders, Invoicing and auto recon, Rule-based billing system, API integration + webhooks, and Paper / Electronic mandates with a Quoted setup fee.
- A Full Bundle is available with Price on application (POA) which includes all types of debit orders, Invoicing and auto recon, a Rule-based billing system, API integration + webhooks, and Paper / Electronic mandates.
SAFETY OF DIRECT DEBIT
Direct Debit is a first-tier debit order collection service provider.
Direct Debit connects your business directly to Bankserv with a comprehensive debit order solution, from initial advice and account set-up to processing debit orders and depositing funds collected into your account. Direct Debit provides a low-cost, transparent fee structure with competitive rates.
CUSTOMER SUPPORT
Direct Debit can be reached telephonically 24/7/365, but telephonic support is restricted to clients only. Anybody else that wishes to chat with the team should complete the request for quotation form and fax or email it to them. A person can also send a direct message or request a call directly from the website.
SUMMARY
Direct Debit is a first-tier debit order collection service provider that facilitates debit order collections via EFT, NAEDO, and DebiCheck payment streams.
Its debit order systems accommodate several types of businesses in debit order collection and systems include debit order collection, file uploading, automation, and API integration, as well as other value-adding services.
Direct Debit is the creator of E-Mandate, electronic debit order agreements that may be used to sign up customers and integrate with existing systems. Direct Debit connects a business directly to Bankserv through comprehensive debit order solutions.
FAQ
What features must be considered when evaluating a payment gateway for your needs?
- Security
- Easy integration
- Detailed reporting
- Good invoicing options
- Multiple payment options
- Fast processing speed
What is a payment service provider?
Payment service providers connect merchants, consumers, card brand networks, and financial institutions to deliver a simple payment experience for merchants and their customers by processing payments quickly and efficiently.
What is Direct Debit?
Direct Debit is a first-tier debit order collection service provider that facilitates debit order collections via EFT, NAEDO, and DebiCheck payment streams.
Is Direct Debit secure?
Direct Debit is PCI DSS Level 1 Service Provider which was developed with the same demands on security and performance as websites used for banking services and share trading. Account login, personal details, and all money transactions are secured using Secure Socket Layer (SSL) technology with high-security 256-bit encryption.
Can Direct Debit Process Mobile Transactions?
Yes, the product is ideally suited to mobile app payments.
