There’s a difference between automatic payments and direct debits. It’s important for businesses to understand this distinction so they can find the right solutions for their customers.
A direct debit is a recurring payment that’s requested and approved by the customer and managed by the business. This means the amount and the frequency of the payment can vary.
An automatic payment is created, controlled and managed solely by the customer – meaning that a business is not given the ability to alter or change the payment.
The advantage of a direct debit is that the business and the customer can work together to find the optimal repayment process.
Working with an online direct debit service like Payleadr gives both parties access to an intuitive online portal. This allows payments can evolve over time to meet the needs of both parties.
It’s the perfect modern solution for today’s busy, digital-first businesses and their customers!