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Direct Debit, Offer an automatic payment option
Introduction to Direct Debit

Are your customers or donors asking for direct debit? Vanco's popular direct debit solution transfers pre-authorized payments or donations electronically from customer or donor bank accounts to your organization's account on a timely basis. Ideal for recurring transactions, direct debit is a smart and cost-effective choice for organizations of any size.



Benefits  
 
Direct debit offers the following benefits to both your organization and its customers or donors:
 
Improves Cash Flow
Payments or donations arrive as scheduled. Especially beneficial in reducing summer donation slump for churches.
 
Lowers Costs
Direct debit can reduce administrative costs.
 
Frees Up Staff Time
Direct debit contributes to productivity by reducing the time spent manually processing checks.
 
Notifies You of Returns Faster
Receive a report detailing any returns within two business days of the payment date.
 
Enhances Customer / Donor Loyalty
Customers and donors appreciate a simple, reliable and cost-effective payment method.
 
Provides Security
Direct debit is more secure than check payments which can be lost, stolen or damaged.
 
Simplifies Bookkeeping
You receive comprehensive reports that are easily imported into your accounting software.
 
Improves Payment Timing and Accuracy
The improved speed and accuracy of electronic processing reduces returned payments and posting errors.
 
Helps the Environment
Direct debit helps to alleviate the burden that paper checks have on our nation's resources and on the environment. Be part of the nationwide solution that has reduced check usage by 50% since 2000.



How Direct Debit Works  

1. Authorize
  Your customers or donors authorize your organization to debit payments from their checking or savings accounts. This is typically done in writing using an authorization form. Another option is to utilize Vanco's Website Payment solution to allow customers or donors to authorize a payment via your organization's website.
 
2. Enter the Payment
  After receiving a signed authorization form from your customer or donor, information pertaining to a payment is entered into Vanco's online Service Center—a secure website where clients manage their electronic transactions. Once a payment is entered, the rest is automated. A Vanco representative will help you get started and provide ongoing assistance.
 
3. Process
  Prior to each scheduled payment date, Vanco transmits a file with payment information via the Automated Clearing House (ACH) network.
 
4. Deposit
  A deposit is made to your company's account for the total amount of the direct debit transactions. Recurring transactions with a fixed dollar amount will continue to process automatically as scheduled until cancelled or put on hold.
 
5. Confirm
  Vanco generates a deposit report confirming the total amount deposited into your organization's account. Your customers in turn see the transactions on account statements from their financial institution.



Frequently Asked Questions  

What is direct debit?
Direct debit is a secure electronic transfer of an authorized payment from your customer's or donor's checking or savings account into your account. Direct debit may also be referred to as electronic funds transfer (EFT), Automated Clearing House (ACH) transfer, direct payment, automatic bill payment, automatic debit and electronic payment.
 
What types of companies and organizations offer direct debit?
Businesses and organizations of all types and sizes now offer direct debit to manage recurring payments and donations. Fitness centers, orthodontists, dentists, property managers, schools, nonprofits and religious organizations all use direct debit to collect dues, fees, payments and donations.
 
Isn't direct debit just for large companies?
Not at all! Vanco specializes in providing electronic payment solutions to small organizations. By combining the transaction activity from thousands of customers, Vanco is able to economically deliver big benefits to even the smallest organizations.
 
Do my customers really want direct debit?
Most people already understand direct debit and use it to pay bills or make donations.
 
How will my customers / donors know the dollar amount that will be deducted from their checking or savings accounts?
For a fixed recurring transaction, the dollar amount deducted is the same amount that was initially authorized. If the amount varies, you are required to send the customer or donor a written notice of the dollar amount at least 10 days prior to the scheduled payment date.
 
How will my customers / donors know the date the payment will be deducted from their checking or savings accounts?
Payments will be deducted on the date originally authorized unless that date is a Saturday, Sunday or Federal holiday, in which case it will be deducted on the first business day following that date.
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Direct Debit Giving

Benefits  |  How It Works  |  FAQs  |  Get Started



Direct debit is ideal for...

- Fitness center dues
- Church offerings
- Charitable giving
- Tuition payments
- Orthodontic & dental payments
- Rent payments & association dues
- Utility payments




What's in a name?

Direct Debit goes by many names, including EFT, ACH, Direct Payment, automatic bill payment, automatic debit and electronic bill payment.




Did you know?

More than half of all U.S. households use direct debit for at least one recurring payment.

Source: NACHA - The Electronic Payments Association




Seamless Website Integration

Vanco's direct debit solution seamlessly integrates with our website payment solution.
  • No web design work on your part
  • No ongoing maintenance required
  • Quick setup (hours, not weeks)
  • Free demo available upon request




Fact

Consumers who use direct debit have fewer late payment fees and are more likely to donate to charitable organizations on a regular basis.

Source: National Automated Clearing House (NACHA)




Cost Savings

Compared to paper checks, direct debit can save organizations a significant amount of money in reduced processing costs.





Get Started  
 
It's Easy To Get Started!
 
Click here to be contacted by a Vanco Services sales representative.
 
You may also call 800-774-9355 and ask for a sales representative or send us an email at Sales@VancoServices.com.
 
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