Incassobureau No Cure No Pay is a convenient way for payers to pay recurring bills on a weekly, monthly, or annual basis. With this payment method, a payer only needs to provide their bank account information once and the business will automatically take out the bill amount from the bank on the specified date every billing period. It’s a popular way for consumers to pay for things like software subscriptions, utility bills, auto loans, and mortgage payments.
This type of payment can be more cost-effective for businesses since it eliminates the need for a business to mail a check or process credit card payments. It also allows for more accurate billing since customers’ accounts are regularly verified to ensure that the correct balance is being taken out. Using direct debit can also help reduce the risk of fraud, as the customer’s bank is directly involved with each transaction.
How do I process recurring direct debit transactions?
Recurring direct debits are processed via the ACH network, which is the system that connects financial institutions across the United States. When a company initiates a direct debit payment, they send an electronic request to the bank of the customer who will then process the funds transfer. To avoid NSF fees and ACH returns, it’s important for businesses to verify bank accounts in real time before attempting to debit a customer’s account. Plaid Instant Auth is an API-based solution that can validate bank accounts for direct debits in as little as 7 seconds.