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Learn more about our latest feature, automatic direct debit, including its various use cases, how it works, and the benefits it provides for you and your business.
What is Automatic Direct Debit?
Our automatic direct debit feature allows users to collect automated subscription payments from customers, even for one-off or variable amounts, from around the world via bank debit schemes such as ACH debit in the US.
Imagine instead of dealing with credit cards, you deal with direct bank accounts. Why is this awesome? Because you can save up to 90% on processing fees without changing the user experience!
Instead of having to request payments every week, month, quarter, or year for a recurring payment, this feature allows you and your customers to set up a plan for automatic payments via borderless’ direct bank-to-bank payment solution.
As you will learn below, this feature gives businesses in many industries several key benefits, including boosted efficiency, a reduction in failed payments, and more.
How it Works
Automatic direct debit may seem confusing and difficult to understand, but borderless™ makes it a simple, three step process. Check out this video to learn how it works!
Step 1: Create a Plan
Set the amount and frequency you would like to debit your customers.
Step 2: One Time Setup
Customers are emailed a link to our secure gateway. They then enter their payment details online to subscribe to the plan.
Step 3: Get Paid Automatically
Payments are collected automatically. We also notify your customers of every payment, which can be tracked in real-time.
Uses for Automatic Direct Debit
There are many uses for automatic direct debit that span a variety of industries. We will describe a few of them below and how businesses in these industries can simplify their payment process and save money with borderless™.
Example 1: Automating Rent Payments for Commercial Office Space
You probably have automated rent payments for your apartment or residential property. Commercial office spaces have a higher difficulty doing so as the amounts are larger, invoices need to be issued and payments are made via checks or bank transfers. With borderless™, you can now automate your invoice and payments in 3 simple steps. The payments are all made via bank transfers with $0 wire fees like clockwork. Who likes paying rent anw?
Example 2: Automating SaaS (Software as a Service) Subscription Payments
Some SaaS companies have high charges for their business and enterprise clients. Some even have certain minimums that need to be charged. These are normally done manually by issuing an invoice everything month or by collecting a few hundred or thousand dollars charges via credit card incurring a 2.5-3% fee on every payment. No business should be forced to choose between automation or saving on processing fees. With borderless™, you can now automate large SaaS charges via direct bank debits with rates as low as 0.1%.
Example 3: Automating International Transfers to Contractors or Vendors.
It is a manual process to pay your vendor or contractor that has a recurring charge or payroll every month. They can now create plans to get paid a certain amount every month using our automatic direct debit plans. This ensures all parties are paying and getting paid on cycle which improves the existing professional experience.
Benefits of Automatic Direct Debit
There are many benefits of using our automatic direct debit feature for you and your business. Here are just a few of them:
Automate Your Savings
Reduce credit and debit card fees by up to 90%! You can automate your business subscriptions with rates as low as 0.1%. That’s money back in your business to help you grow.
Eliminate unnecessary manual work and streamline your payment process by automating your payments.
Reduce Failed Payments
Bank accounts don’t suffer from expiration or loss, which means failed payments are a thing of the past.
Forecast with Accuracy
With automated recurring payments you know how much you will receive each month, allowing you to take greater control over your cash flow.
Automatic direct debit is just one of many features that borderless™ provides in our efforts to deliver a global solution for better business payments.