Failed payments can be frustrating for your customers and your business alike. Here are a few ways you can assist your customer in avoiding failed payments while improving your collection rate:
- Ensure that your customers have the required funds in the accounts at least 1 day before the billing date. Placing the funds in the account on the day of the billing may be too late, as our billing run may have already occurred before the customer places the funds in the account.
- Ensure that the card details/bank account details (like the card number, expiry date, and the name on the card) are correct and up to date.
- If the card/bank account will be used for more than one person's payments, ensure this is communicated with the bank to avoid them from assuming it's a fraudulent/duplicate deduction.
- If the customer is using a bank account debit for their payments, it is important to note that bank debits take 3 working days to process. Therefore, in those 3 working days, the customer will need to ensure the following:
- The funds remain in the account during the 3 working day processing period, even if the bank statement displays that the deduction has taken place. This is because the payment would still be floating from the bank's end until the processing period is over.
- Ensure no other deductions are coming out around the same time that would affect the payment processing.
- Ensure that the bank details provided are for a bank account that allows direct debits, as some banks don't.
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