Ask not what your organization can do for payment collection, but what competent, cost effective payment collection is able to do within your company. Just about the most efficient, inexpensive payment strategies on the market today is known as a NAEDO or Non-Authenticated Early Debit Order. This payment system fuses the efficiency of debit orders together with the intelligent tracking of credit payments to increase the likelihood of successful collections and lower fees allocated to retries and returned debits.
NAEDO debit orders were introduced together with AEDO or Authenticated Early Debit Orders in South Africa in September 2006. These fairly new payment systems were brought in to increase debit order effectiveness by permitting smart, fair action of any debit order as close to a credit payment (e.g. salary deposit) as possible. AEDO payments usually are connected with pos transactions where a future dated debit is mandated by pin authentication, with a debit or credit card or account with a bank for example. NAEDO debits will not require pin authorization, have got a R5,000.00 per item transaction cap and so are only approved to generally be submitted on accounts.
To eliminate the thriving problem of preferential payment access where some classes of beneficiaries always had use of account holder funds before others the NAEDO along with its contemporaries were launched. The introduction of new legislation allowed for the phasing out from existing preferential practices doing away with unfair reduced collection success for specific beneficiary classes and establishing an identical stage for everyone. NAEDO’s are processed on a random, non-preferential basis, providing every beneficiary or service agency with an equal and fair opportunity to collect payments.
The magic behind a Non-Authenticated Early Debit Order (NAEDO) is it could be enhanced by the use of tracking facilities. This simply means the beneficiary or service agency can stretch the mandated date over a specified period of time allowing the debit order instruction to generally be kept active, but unprocessed, until a credit payment is receive within the account. This significantly improves the creditor’s possibilities of collecting.
All considered, a NAEDO doesn’t just give your small business a reasonable probability of collecting funds, but increases your likelihood for this by permitting tracking to activate the debit at the most opportune time. If you’re concerned about your collection efficiency now could be the time to switch to NAEDO.
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