Ask not what your company is capable of doing for payment collection, but what competent, cheap payment collection is able to do in your business. Just about the most efficient, low priced payment strategies available is a NAEDO or Non-Authenticated Early Debit Order. This payment system brings together the effectiveness of debit orders with all the sensible monitoring of credit payments to increase the likelihood of successful collections and reduce fees used on retries and returned debits.
NAEDO debit orders were launched coupled with AEDO or Authenticated Early Debit Orders in South Africa in September 2006. These somewhat new payment systems were brought to maximize debit order efficiency by allowing smart, fair action of the debit order as close to a credit payment (e.g. salary deposit) as is possible. AEDO payments tend to be connected with pos transactions in which a future dated debit is mandated by pin authentication, on a debit or credit card or banking account for example. NAEDO debits will not require pin authorization, have a R5,000.00 per item transaction cap and are generally only authorized to get submitted on accounts.
To eradicate the expanding problem of preferential payment access where some classes of beneficiaries always had use of account holder funds before others the NAEDO along with its contemporaries were launched. The creation of new legislation allowed for the phasing out of existing preferential practices eliminating unfair reduced collection success rates for specific beneficiary classes and establishing an equal playing field for all. NAEDO's are processed on a random, non-preferential basis, providing every beneficiary or service provider with the equal and fair opportunity to collect payments.
The magic behind a Non-Authenticated Early Debit Order (NAEDO) is that it could be enhanced by means of tracking facilities. This implies the beneficiary or company can stretch the mandated date across a specified period of time allowing the debit order instruction to generally be kept active, but unprocessed, until a credit payment is receive in the account. This significantly increases the creditor's probabilities of collecting.
All considered, a NAEDO doesn't just give your enterprise a fair probability of collecting funds, but increases your likelihood to do this by allowing tracking to induce the debit at the most opportune time. In case you are concerned about your collection efficacy now might be the time to switch to NAEDO.
NAEDO debit orders were launched coupled with AEDO or Authenticated Early Debit Orders in South Africa in September 2006. These somewhat new payment systems were brought to maximize debit order efficiency by allowing smart, fair action of the debit order as close to a credit payment (e.g. salary deposit) as is possible. AEDO payments tend to be connected with pos transactions in which a future dated debit is mandated by pin authentication, on a debit or credit card or banking account for example. NAEDO debits will not require pin authorization, have a R5,000.00 per item transaction cap and are generally only authorized to get submitted on accounts.
To eradicate the expanding problem of preferential payment access where some classes of beneficiaries always had use of account holder funds before others the NAEDO along with its contemporaries were launched. The creation of new legislation allowed for the phasing out of existing preferential practices eliminating unfair reduced collection success rates for specific beneficiary classes and establishing an equal playing field for all. NAEDO's are processed on a random, non-preferential basis, providing every beneficiary or service provider with the equal and fair opportunity to collect payments.
The magic behind a Non-Authenticated Early Debit Order (NAEDO) is that it could be enhanced by means of tracking facilities. This implies the beneficiary or company can stretch the mandated date across a specified period of time allowing the debit order instruction to generally be kept active, but unprocessed, until a credit payment is receive in the account. This significantly increases the creditor's probabilities of collecting.
All considered, a NAEDO doesn't just give your enterprise a fair probability of collecting funds, but increases your likelihood to do this by allowing tracking to induce the debit at the most opportune time. In case you are concerned about your collection efficacy now might be the time to switch to NAEDO.
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Seeking the most amazing deal on a debit order system? Go and take a look at Direct Debit to find expert information on NAEDO facilities.
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