How to Pick a Debit Order Collection Service Provider
Once you’ve familiarised yourself with the benefits of debit order collections you’ll almost certainly want to appoint a supplier – but what do you look for and what questions should you be asking potential service providers?
One of the initial shocks most companies receive when they begin investigating a collection service is being told that although their clients’ accounts will be debited, they won’t actually receive the cash for a couple of weeks (this is to allow the end customer a window during which queries can be made – read this FAQ document for more). Given this, the starting point in your selection process must be to ensure your vendor is as credible as possible. The last thing you want is to find something funny (or, rather, far from funny) happens to your money during this period.
How do you establish credibility? For starters, look at their credentials. The way in which they present themselves and the speed with which they respond to you is probably a fairly good indicator as to how they’ll treat you once you become a client. A slow and laboured response to your initial enquiry may well reflect their approach to customer service. A quick and professional follow-up often suggests interest and enthusiasm. But don’t stop there. Ask the supplier to provide references or testimonials from other companies who are using them. At DigiCash we hope we’ll respond quickly, we’ll certainly respond thoroughly and we’ve plenty clients who’ll gladly tell you about their experience of working with us.
So, credibility established, what else do you look at?
Costs are a fairly critical factor. Why you may ask is there such variance in the fees different providers charge? Monthly fees vary from R150 to R400 while per transaction costs for a same day debit orders can be anything from R2 to R3. There’s no apparent reason for some to charge more than others, so don’t be fooled into thinking that the more you pay, the more you get. In fact, in this instance, the more you pay in fees the lower your payout will be – and if you’re handling thousands of transactions, just a few cents can make a significant difference to your cashflow and profitability.
Then there’s reliability. What happens if your service provider drops the ball? Imagine they failed to reconcile the money they collected from your customers. That would mean they’d have to delay your pay out. It shouldn’t happen, but it does. So ask about systems uptime and find out whether reconciliations are handled automatically or manually.
Whether you decide to use our services or another, please do follow the suggestions detailed above. Spend a little longer making your decision in the beginning; rather make the right decision once than the wrong decision once/twice/etc.
If you’d like to vet our credentials or talk to any of our customers, do please drop us a mail or give us a call on 021 552 2005.