When it comes to choosing the best debit order company to suit your business needs, it is important to look at all the aspects of the company. What do they charge for debit orders? How much does the company charge for surety and security retention? How long do they hold onto these funds? We take a closer look at why Corporate Collect is the best debit order company in SA.
Why you should go for the best debit order company in SA
Business owners have to bring into account every expense associated with running debit orders for your budget’s sake. For this reason, it is important to know how much of your funds will be available at which times of the month. This will help a business owner manage their cash flow effectively.
For example, if you run or manage a kinder garden with 100 children and are dependent on debit order collections. For example, if your debit order provider retains 22% of your income for security purposes every month, your cash flow will suffer the consequences. Thus, your money is being kept elsewhere and earning interest for a third party.
Let’s compare competitor A, competitor B and Corporate Collect:
Competitor A is a South African debit order collection company that is regulated by relevant SA authorities and bodies. The company offers online payment solutions to small and medium sized businesses.
No upfront surety is required whilst 90% of the client’s collection value is paid on the same day that the debit orders are processed.
A monthly fee of R220 is charged for debit order collections.
Surety retention and security retention (unpaid retention) is calculated at 20% of each batch that is processed and held for 22 working days. However, this is based on the assumption that you do not have any unsuccessful collection.
In case of unpaid retention, the company will hold surety retention at 10% of the batch value for 22 working days. For unpaid retention, the company will hold 10% for 22 working days if you are a private company or closed corporation. For sole proprietors, the company holds 100% for 22 working days. The sole proprietors have more risk.
Competitor B is a South African based debit order collection company that is regulated by all the necessary regulatory bodies. The company offers clients collection and payment facilitating services and prides themselves in being flexible and dedicated.
Competitor B requires a security calculated on the average rand value collected and processed on a monthly basis. This could be either 10% of collection, the same amount as the client’s highest debit order or an amount equal to disputed transactions of the last 3 months. For instance, if you have 10 transactions per month that total R50 000, you will be required to put down a security amount of R50 000. You can furnish this amount with an upfront ETF or bank guarantee.
A once-off joining fee of R660 is charged along with an annual license fee of R390. Monthly admin fees add up to R390. This includes monthly invoices as well as payment reports. Clients will also have access to 24/7 web interface training that is free of charge.
Corporate Collect charges a once-off joining fee of R550 followed by an annual licence fee of R795. Monthly admin fees add up to R295. Corporate Collect does not require any surety – 0%!
Security retention is calculated on your average failure rate of the past 3 months. If you pass with 100%, meaning there were no debit order failures, you pay basically no security retention.
An added bonus of Corporate Collect is Account Holder Verification (AHV) services. This means that Corporate Collect will verify bank accounts to ensure the account belongs to the right person. This helps clients to avoid unnecessary debit order bouncing costs. Remember, competitors A and B do not do provide AHV services.
Also, unlike competitors A and B, Corporate Collect’s system will keep track of debit orders should the deduction date fall on a holiday or weekend. The date will automatically be adjusted to a date that has the highest success rate. There is no need for a R85 or R25 failure fee as charged by our competitors.
Corporate Collect charges R7.50 – R15 as per bank charge for failed debit orders. Depending on the volume of debit orders your company requires, we charge +/- R3.50 per debit order.
Corporate Collect is regulated by PASA and PSSF. Contact us today for a quote by sending an email to Jacques Serfontein at email@example.com.