NAEDO: Smart, debit orders that enhance your collection rates

July 19, 2012 · Posted in Business · Comment 

Ask not what your business can do for monthly payment collection, but what competent, low cost payment collection is able to do within your business enterprise. The single most efficient, low cost payment methods currently available is actually a NAEDO or Non-Authenticated Early Debit Order. This payment procedure combines the efficacy of debit orders together with the intelligent monitoring of credit payments to help increase your chances of successful collections and reduce fees allocated to retries and returned debits.

NAEDO debit orders were launched in conjunction with AEDO or Authenticated Early Debit Orders in South Africa in September 2006. These relatively recent payment systems were brought to increase debit order effectiveness by allowing intelligent, fair action of your debit order as close to a credit payment (e.g. salary deposit) as possible. AEDO payments are generally linked with pos transactions where a future dated debit is mandated by pin authentication, on a debit or credit card or bank account for instance. NAEDO debits don’t require pin authorization, have got a R5,000.00 per item transaction cap and tend to be only authorized to generally be submitted on accounts.

To eradicate the increasing problem of preferential payment access where some classes of beneficiaries always had use of account holder funds before others the NAEDO and its contemporaries were brought in. The introduction of new legislation allowed for the phasing out from existing preferential practices getting rid of unfair reduced collection success rates for specific beneficiary classes and establishing an equal field for all. NAEDO’s are processed in a random, non-preferential basis, providing every beneficiary or service provider with the equal and fair ability to collect payments.

The magic behind a Non-Authenticated Early Debit Order (NAEDO) is that it may be enhanced by means of tracking facilities. What this means is the beneficiary or service agency can stretch the mandated date across a specified period of time allowing the debit order instruction to be kept active, but unprocessed, until a credit payment is receive in the account. This significantly raises the creditor’s probability of collecting.

All taken into consideration, a NAEDO does not only give your company an honest potential for collecting funds, but increases your likelihood to do this by permitting tracking to induce the debit at the most opportune time. So if you are worried about your collection efficiency now may be the time to change to NAEDO.

Learn how to collect from your clients bank accounts via debit orders. Take a peak at Deb Odres website where its easy to find out all about EFT debit orders for your business.

Discovering the right debit order technique

May 25, 2012 · Posted in Finance · Comment 

Many companies do not know of the many advantages of making use of a debit order service to receive funds from their customers, not to mention which debit order solution will be the ideal for their needs.

Having sorted out many businesses payment collection methods I am going to attempt to explain why you should be utilizing debit order as favourite payment collection method for your corporation and also which debit order approach is going to be ideal to your marketplace and kind of clientele.

We begin looking into what a debit order is:

A debit order is an instruction that a bank or credit card account owner provides a business to collect funds straight from their banking account. They manner in which a customer presents this instruction is simply by performing a written or spoken (normally telephonic) debit order mandate.

A debit order, as we label it in South Africa, is usually referred to as a direct debit in many areas of the world. For more information on direct debits please visit the appropriate Wikipedia article.

In South Africa there are actually generally two kinds of debit order. Electronic Funds Transfer (EFT) and Early Debit Order (EDO) that may further be broken into Authenticated Early Debit Order (AEDO) and Non-authenticated Early Debit Order (NAEDO). EFT debit orders run after EDO debit orders when processed through the standard banking debit order runs. Both AEDO and NAEDO debit orders run in a very randomised manner before EFT debit orders and enable creditors an equal capability to collect monies from the customers.

NAEDO debit orders were introduced in 2008 because of a National Credit Act initiative and enable creditors to acquire as much as R5,000.00 in the most fair manner achievable. You should be aware that regular EFT debit orders make allowances for collecting up to R500,000.00 per debit instruction.

EFTs are in general more cost effective than AEDOs and NAEDOs but don’t include the ability to track a customer account/credit card for as much as 32 days. If monies would get to the account within the tracking period, these funds could be reserved for collection by the party initiating the debit.

Some quick examples to clarify where EFT and NAEDO debit order collections would be used:

1. An investment corporation wanting to collect an additional payment from one of their investors would most likely use an EFT debit order on the grounds that the probability of the customer having funds available for collection is very high. The total to be collected would also many times go beyond the R5,000.00 NAEDO limit and cost of the collection might be a factor.

2. Insurance brokerages collecting a monthly premium from one of their customers for funeral cover would be best off utilizing a NAEDO debit order run. The probability of this consumer having money handy is quite low and tracking will probably be useful to keep tabs on the clientele account for when monies do turn up (typically their monthly earnings).

Virtually any micro loan company would be best off implementing NAEDO since they deal with customers who usually do not have cash available within their accounts especially around the standard debit collection dates. This is certainly quite self evident as these individuals probably have a history of applying for credit and would possibly have many debit orders to numerous creditors going off on the same day. It’s because of this that the randomisation of NAEDO orders can be a big help to ensure each creditor has got an identical chance of being paid.

Conversely any service provider will likely pick EFT as their desired debit order method since they maintain a certain amount of control over their client through ending/suspending service as a way to obtain payment. Service providers also tend not to offer any credit terms and payment is made on a regular monthly basis.

I understand there are several circumstances and border cases which can merit a service provider or creditor opting to make use of either EFT or EDO debit orders and definitely will look into these situations in greater detail in my subsequent blog post.

Before selecting a debit order solution, be sure to check Deb Odres excellent resources on the best debit order companies available for your business.

Chip And Pin Credit Cards Assist In Fraud Protection

May 24, 2012 · Posted in Merchants · Comment 

Many are the times when users of credit card complain of fraud of different mannerisms. Due to the increasing demand for curbing this condition, most countries are now turning to the use of chip and pin credit cards. These cards are different from the initial types in that they do not use the normal magnetic strip commonly plastered across the back of the card. In contrast, the information on it is stored in a microchip hidden within it.

The other unique feature found on these cards is that the user has a unique PIN number that he or she alone can recognize. This therefore means that whenever a thief stills it from them, the card is rendered useless unless they know the number. They have helped cut down on theft in many countries, including Britain. Most retailers in the United States also recognize its use. The Canada is yet to accept its working mannerisms, hopefully by the year 2015.

The use of this type of cards has greatly reduced theft in many countries. Even if a thief steals the card, there is nothing much to do with it, as they do not know the secret PIN. It is highly advisable that a person does not share the number with any other person. Retailers and other merchandisers are advised to embrace this technology, as t is beneficial to them and their clients.

These cards are very fast when carrying out transactions. Unlike the previous versions where a person was required to give the service provider or sales person the card for billing, these types only require the owner to swipe it, enter their secret number and within minutes, everything is done. This is more convenient and time saving as well as safe.

Most places that accept the use of credit cards countrywide have invested in this machine. Such places include petrol stations, most companies, shops and retailers worldwide. Both customers and their merchandisers benefit from such transactions. They safeguard the customers against fraud while at the same time protecting the retailers against loss of cash.

The popular use of this card types has increased from static businesses to other businesses on the go. This has acted as a means of reaching out to targeted clients the world over because of the reliable payment mode. Consequently, more people both merchandisers and buyers attend trade shows and such like events to promote sales and boost profits.

It is wise to carry chip and pin credit cards while travelling. They provide an alternative means of purchasing goods and paying for services. As such, when an emergency occurs, this is the best partner to have.

Learn more about how you can increase your productivity with effective chip and pin machines today! You can get the information you will need to choose the machines that will meet your needs when you visit now.

How To Consolidate Student Loans

May 9, 2012 · Posted in Education · Comment 

There are various by which one can use to consolidate student loans. The mode chosen is determined by the amount of money that one was able to receive and also the interest that has accumulated with time. It is at this point that one has to find a way to clear the debt and get a head start on financial freedom.

The federal government came to the decision to split the consolidation process in to two based on the payment patterns. For people who have been making regular payments on the advances, they can be allowed to take the special consolidation package. There are terms that guide on who are eligible for them.

Gathering the information on the loans available is important and is the first step that one needs to take. It is a step that will necessitate getting in contact with the loan provider. This is to be furnished with information regarding the amount of money that they have to pay.

The second step is carrying out research on the advances. People who have cleared their studies may not be able to get consolidation for the entire amount that they owe. But, the research that they have carried out will enable them find better ways for graduates to get this sort of facility.

Having identifies all these; one has to make an application. This is the one that informs the lender of what your intentions are. It will also indicate the amount of money that one is applying for and the purpose of the application.

Settling on the lender with the best rates and terms is important. It means that a person has to read the terms that are attached to each application. The conditions for repayment as well as the amount that a person will have to pay as rates are indicated here. It also has the duration of time that the repayment is expected to take.

Another reason as to why one should consider consolidation is if they hope to lock into a fixed rate for all the loans. This allows the interest rates that are charged to be manageable. It will therefore be less of a burden if one can manage to get the consolidation.

Each person who has been through college needs to start thinking about how to consolidate student loans. It is easy and it is something that can be done after carrying out some quick research. Research is meant to arm and provide one with information on what they are getting in to and what the payments will now be.

When students have several loans outstanding, the benefits to consolidate student loans are significant now. You can learn more about rates and requirements by visiting the website at now.

Importance Of Federal Consolidation Loan

May 1, 2012 · Posted in Finance · Comment 

This is a special student arranged lending criteria which allows the associated borrower to combine several debts into one solid debt. This is an advantageous arrangement as it allows students who may not be in a stable financial position to pay all the debts in single monthly remittance instead of multiple remittances. Federal consolidation loan allows students to be able to meet their expenditures and related costs.

This type of loaning system is open to all students even though the ones who maximally benefit are those with financial constraints and cannot afford their fees. The application forms are processed within a short duration thus gives immediate relief. The ease of repayment is easily realized as the amount is paid in small amounts over a long period of time.

The rates of the service are lowered to favor the clients as most of the clients are unable to raise huge amounts of money in the shortest time possible. Students can have their financial solutions solved either for a short period within which there are no finances or in the long run. This helps clients to cautiously manage their money in a responsible manner.

Most firms involved do not go into the details of clients as their credit worthiness if often neglected; the aim of these firms is to be a solution to financial problems facing students. Credit history in never a consideration to majority of the firms thus making them very reliable. Application forms are also freely given to the customers.

Clients enjoy a reduction in monthly rates and the amount to be paid by approximately 50 percent making it easy to pay within the period agreed upon. Different service providers have different policies which must be studied before one selects a firm. This is one of the most cost effective and affordable services therein.

This can be a handy asset to students who may have fee payment problems as the funds provided by the firms are always enough and depend on the amount needed by a client. The term for repayment of the money is therefore lengthened and the amount reduced into small affordable cash. The amount of money borrowed therefore determines the length of time the repayment is to be done; it can be up to 10 years.

Federal consolidation loan has been a source of solace for many students who have been unable to meet the educational expenses and provided immediate relief. One can pay in large sums thus reduce the time the repayment is to take. Some firms have websites which can be visited for more information.

Learn how you can lower the payments on your student loan more easily when you participate in the federal student loan consolidation program. You can get all the information you will need to take advantage of this great opportunity when you visit today.

Types of Morgages

February 11, 2012 · Posted in Finance · Comment 

While a mortgage is fundamentally a loan that is secured against your home, there are many variations to the type of mortgage that can be used for various needs. Based on your goals and risk characteristics there may be a number of different mortgage products that will meet your needs.

A high-ratio mortgage is a loan that is above 75% and up to 95% of the purchase price or appraised value of the home, whichever is less. These mortgages must me insured against loss by either Canada Mortgage and Housing Corporation (CMHC), a Federal Government Corporation, or GE Capital, a private insurer. The premiums can be added to the mortgage amount or paid at closing.

A First mortgage is the first debt registered against a property that is secured by a first “charge” on the property. If a default on the mortgage occurs, the first lender has first right on the property to recover the outstanding principal and interest costs, and any other costs incurred during the process.

If you obtained an insured mortgage after April 1′st, 1997, the premium you paid on the mortgage is now portable to another property (if you closed before this date, it is not portable, meaning that if you bought another home and your mortgage needed to be insured, you must pay the applicable premium again.

A closed mortgage offers the security of fixed payment for terms from 6 months to 10 years. The interest rates are considerable lower than open, and if you are not planning on any one of the above reasons, then choose a closed mortgage. Nowadays, they offer as much as 20% prepayment of the original principal, and that is more than most of us can hope to prepay on a yearly basis. If one wanted to pay off the full mortgage prior to the maturity, a penalty would be charged to break that mortgage. The penalty is usually 3 months interest, or interest rate differential

When rates are on their way down, or you may feel that they will in the near future, a 6 month convertible mortgage offers you the short term commitment at fixed payments, with an added advantage that while within the term, the mortgage is fully convertible to a longer term from 1 year to 10 years, at the drop of a dime. At the end of the 6 month period, the mortgage becomes fully open, where one can renew with the existing lender or transfer to another lender. Even though it is offered at many financial institutions, there are differences from one to the next.

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