Direct Payment FAQs For Small Business

General Questions About Direct Payment

Do my customers really want Direct Payment via ACH?

Many customers already use Direct Payment via ACH because it is safe, convenient, and lets them decide how to pay.

Will it cost my company money to offer Direct Payment via ACH as a payment option?

As with any new service, there are initial set-up costs, as well as ongoing costs. These costs will seem small once your company begins to realize the savings of Direct Payment via ACH, which average 11.5 cents per payment versus paper checks.

Is Direct Payment via ACH just for large companies?

Businesses of any size can benefit, and should offer Direct Payment. Customers increasingly expect to be able to pay bills by Direct Payment via ACH.

What types of companies and organizations offer Direct Payment via ACH?

Companies, government agencies, and other organizations of all sizes offer Direct Payment to enable customers to pay them electronically in a safe, secure, and reliable way.

What is Direct Payment via ACH?

Direct Payment via ACH is the use of funds for making a payment. Individuals or organizations can send or receive a Direct Payment as an ACH credit or debit.

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Getting Started With Direct Payment

How will my customers know the date the payment will be from their checking or savings account?

Your company is required to send a written notice seven days prior to the scheduled date. Many companies select a specific day of the month, and remind customers that if that date falls on a weekend or holiday, payment will be collected on the first business day following that date.

How will my customers know the dollar amount that will be withdrawn from their checking or savings account?

If the customer signs up for recurring Direct Payment and the amount is for a fixed amount, that is specified in the enrollment process. If the amount varies, such as for a utility bill, you are required to notify the customer prior to the scheduled payment date. Or a dollar range can be specified in the enrollment process, and the customer can waive the notification. If the customer authorizes you to initiate the Direct Payment on your website, the customer enters the payment amount and notification is typically made to the specified customer email address. If the customer initiates the Direct Payment through his or her online bill payment service, the customer specifies the payment amount in that service.

Will my company lose the money that it collects in late fees?

There may be a dip in late fee revenue, but you save in processing and administrative costs. With Direct Payment via ACH, you will pay less for collections and gain a stabilized cash flow. Some companies have leveraged the reliability and flexibility of Direct Payment to allow customers to authorize expedited or last-minute payments for a fee, helping them avoid negative impact to their credit ratings.

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