What is the Direct
Payment Plan?
Direct Payment is a smart way
to collect payments. It can save your company time and money, build customer
satisfaction and retention, and improve your payment operation efficiency.
The Direct Payment Plan is a
Check Assist application
that allows consumers to have payments electronically withdrawn from their
checking or savings accounts on a pre-determined date. The Direct Payment Plan
uses the ACH (Automated Clearing House) and the Federal Reserve to process the
electronic withdrawals.
How is the Direct
Payment Plan used?
The Direct Payment Plan is used by consumers to pay
recurring bills. These recurring
bills can come from several sources including:
-
Dental Offices
-
Daycare
-
Tutoring Centers
-
Private Schools
-
Gyms/Health clubs
-
Karate Schools
Who uses the Direct
Payment Plan?
- More and more people select the Direct Payment Plan as their preferred
method of paying their bills.
- 43%
of U.S. Households have at least one bill paid automatically.
- 30
– 50% of all life insurance payments are paid using Direct Payments.
- 5
– 20% of all utility customers choose to pay using Direct Payment.
Benefits of the Direct
Payment Plan.
The Direct Payment Plan will bring benefits to
consumers, as well as businesses and financial institutions. With an already
high level of consumer awareness and incentives such as postal rate increases
Direct Payment Plans are becoming even more popular. Some of the benefits
using a Direct Payment Plan are:
For the Company
- Elimination
of check handling and check processing
- Elimination
of costs associated with printing and mailing monthly bills.
- Reduced
delinquencies of receivables.
- Increased member or donor retention
For
the Consumer
- Elimination
of check, envelope, and postage costs.
- Elimination
of past due payments, late charges, or derogatory credit reporting.
- Convenient bill paying for today’s hectic family
Please
visit our reply page if you would like someone to contact you
regarding the Check Assist Direct Payment plan.
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