Ask not what your organization can do for payment collection, but what competent, cheap payment collection is able to do within your organization. The single most efficient, low cost payment methods available is a NAEDO or Non-Authenticated Early Debit Order. This payment strategy combines the efficiency of debit orders together with the smart monitoring of credit payments to help increase your odds of successful collections and minimize fees spent on retries and returned debits.
NAEDO debit orders were launched together with AEDO or Authenticated Early Debit Orders in South Africa in September 2006. These relatively recent payment systems were brought to boost debit order efficiency by letting smart, fair action of the debit order as close to a credit payment (e.g. salary deposit) as possible. AEDO payments tend to be connected to pos transactions where the future dated debit is mandated by pin authentication, on the debit or bank card or account with a bank for example. NAEDO debits will not require pin authorization, have a R5,000.00 per item transaction cap and are generally only approved to be submitted on accounts.
To eradicate the escalating problem of preferential payment access where some classes of beneficiaries always had use of account holder funds before others the NAEDO as well as its contemporaries were released. The development of new legislation allowed for the phasing out from existing preferential practices eradicating unfair reduced collection success for many beneficiary classes and establishing an equal stage for everyone. NAEDO's are processed on a random, non-preferential basis, providing every beneficiary or service provider with the equal and fair opportunity to collect payments.
The magic behind a Non-Authenticated Early Debit Order (NAEDO) is that it might be enhanced through the use of tracking facilities. This suggests the beneficiary or vendor can stretch the mandated date across a number of months allowing the debit order instruction to remain kept active, but unprocessed, until a credit payment is receive within the account. This significantly increases the creditor's likelihood of collecting.
All looked at, a NAEDO won't just give your business an affordable chance of collecting funds, but increases your likelihood to do this by allowing tracking to bring about the debit at the most opportune time. So if you're serious about your collection efficacy now could possibly be the time to change to NAEDO.
NAEDO debit orders were launched together with AEDO or Authenticated Early Debit Orders in South Africa in September 2006. These relatively recent payment systems were brought to boost debit order efficiency by letting smart, fair action of the debit order as close to a credit payment (e.g. salary deposit) as possible. AEDO payments tend to be connected to pos transactions where the future dated debit is mandated by pin authentication, on the debit or bank card or account with a bank for example. NAEDO debits will not require pin authorization, have a R5,000.00 per item transaction cap and are generally only approved to be submitted on accounts.
To eradicate the escalating problem of preferential payment access where some classes of beneficiaries always had use of account holder funds before others the NAEDO as well as its contemporaries were released. The development of new legislation allowed for the phasing out from existing preferential practices eradicating unfair reduced collection success for many beneficiary classes and establishing an equal stage for everyone. NAEDO's are processed on a random, non-preferential basis, providing every beneficiary or service provider with the equal and fair opportunity to collect payments.
The magic behind a Non-Authenticated Early Debit Order (NAEDO) is that it might be enhanced through the use of tracking facilities. This suggests the beneficiary or vendor can stretch the mandated date across a number of months allowing the debit order instruction to remain kept active, but unprocessed, until a credit payment is receive within the account. This significantly increases the creditor's likelihood of collecting.
All looked at, a NAEDO won't just give your business an affordable chance of collecting funds, but increases your likelihood to do this by allowing tracking to bring about the debit at the most opportune time. So if you're serious about your collection efficacy now could possibly be the time to change to NAEDO.
About the Author:
Tim Smart is an expert in business payment collection. Tim specialises in debit order collection and the best NAEDO systems for your needs.
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