There are a lot of concepts swirling around about direct debit payments and how they work. It gets confusing if you don’t have the facts, so it’s time debunk the misconceptions. Here are some key myths about direct debit that you may have come across.
1. Taking Direct Debit Payments Requires Expensive Software
A misconception that taking direct debit payments requires expensive software or equipment can be debunked thanks to cloud technology. When you use cloud based business payment solutions, you don’t have to worry about investing in expensive software. Instead, payment technology that uses cloud solutions offers the flexibility and affordability. You can learn more about our innovative cloud based technology here.
2. Direct Debit Is Not Secure
Data security has been a major concern for both customers and businesses alike — for good reason. Data breaches are increasing and cost organizations $500 billion each year. However, up to 93 percent of these data breaches are preventable. The idea that direct debit payments are unsafe is a misconception that is debunked thanks to tokenization. Tokenization is used to encrypt, hide and process sensitive data such as credit card numbers. The technology works by creating a unique code or token that replaces the client’s actual card number. Merchant clients can then use this token to process a transaction. Since it reduces the need for clients to see the actual card number, it also minimizes data breach and safeguards against fraudulent transactions.
At IntegraPay, these tokenized credit cards are stored in our Level 1 PCI compliant vault environment, the highest level of PCI compliance. You can read more and have an understanding of what is PCI and how it can affect your business here.
3. Direct Debit Payments Are Paperwork-Prone
While you do need to get the consent of your customer before you can start taking direct debit payments, a paper mandate is not the only way to receive consent. You can also obtain the consent of your customers to take direct debit payments electronically with electronic direct debit requests called eDDRs. These eDDRs help minimize the amount of paperwork and data that must be entered manually to receive consent to start recurring payments. It also helps expedite the process of taking automated payments. Your customers can enjoy their membership or subscriptions and your business can get paid on time.
Get The Facts
Thanks to tokenization, cloud technology and eDDRs you can use direct debit payments to seamlessly take recurring payments securely and with confidence. With IntegraPay as your payments partner, you have access to our certified PCI DSS compliant solutions backed by our Australian Financial Services Licence (AFSL). This gives you the peace of mind that your data and your customer’s data is secure. If you have any further questions in regards to direct debit payments, please feel free to contact one of our payment solution specialists.