Ask not what your enterprise is able to do for payment collection, but what competent, affordable payment collection can do with regards to your company. The single most efficient, affordable payment procedures available today is known as a NAEDO or Non-Authenticated Early Debit Order. This payment method brings together the efficiency of debit orders with all the clever tracking of credit payments to help increase the likelihood of successful collections and reduce 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 somewhat new payment systems were brought to improve debit order efficacy by allowing intelligent, honest action of an debit order as near to a credit payment (e.g. salary deposit) as you can. AEDO payments are often connected with pos transactions where a future dated debit is mandated by pin authentication, on the debit or credit card or bank-account for instance. NAEDO debits don't require pin authorization, have a R5,000.00 per item transaction cap and tend to be only approved to be submitted on accounts.
To remove the increasing problem of preferential payment access where some classes of beneficiaries always had access to account holder funds before others the NAEDO and its contemporaries were brought in. The roll-out of new legislation allowed for the phasing out from existing preferential practices eliminating unfair reduced collection success rates for specific beneficiary classes and establishing an equal arena for all. NAEDO's are processed in a random, non-preferential basis, providing every beneficiary or service provider with a equal and fair opportunity to collect payments.
The wonder behind a Non-Authenticated Early Debit Order (NAEDO) is that it could be enhanced by the use of tracking facilities. This implies the beneficiary or service agency can stretch the mandated date across a number of months allowing the debit order instruction to always be kept active, but unprocessed, until a credit payment is receive within the account. This significantly enhances the creditor's odds of collecting.
All taken into account, a NAEDO will not only give your small business an affordable possibility of collecting funds, but increases your likelihood to do so by allowing tracking to activate the debit at the most opportune time. If you are concerned about your collection efficacy now might be the time to switch to NAEDO.
NAEDO debit orders were introduced together with AEDO or Authenticated Early Debit Orders in South Africa in September 2006. These somewhat new payment systems were brought to improve debit order efficacy by allowing intelligent, honest action of an debit order as near to a credit payment (e.g. salary deposit) as you can. AEDO payments are often connected with pos transactions where a future dated debit is mandated by pin authentication, on the debit or credit card or bank-account for instance. NAEDO debits don't require pin authorization, have a R5,000.00 per item transaction cap and tend to be only approved to be submitted on accounts.
To remove the increasing problem of preferential payment access where some classes of beneficiaries always had access to account holder funds before others the NAEDO and its contemporaries were brought in. The roll-out of new legislation allowed for the phasing out from existing preferential practices eliminating unfair reduced collection success rates for specific beneficiary classes and establishing an equal arena for all. NAEDO's are processed in a random, non-preferential basis, providing every beneficiary or service provider with a equal and fair opportunity to collect payments.
The wonder behind a Non-Authenticated Early Debit Order (NAEDO) is that it could be enhanced by the use of tracking facilities. This implies the beneficiary or service agency can stretch the mandated date across a number of months allowing the debit order instruction to always be kept active, but unprocessed, until a credit payment is receive within the account. This significantly enhances the creditor's odds of collecting.
All taken into account, a NAEDO will not only give your small business an affordable possibility of collecting funds, but increases your likelihood to do so by allowing tracking to activate the debit at the most opportune time. If you are concerned about your collection efficacy now might be the time to switch to NAEDO.
About the Author:
Debby Ordner is an expert in business payment collection. Debby specialises in NAEDO debit ordersand the best debit order procedures for your needs.
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