How does Ezypay work?

Direct debit is an agreement initiated by a business to withdraw funds from a customer’s account. Direct debit typically refers to bank transactions, but can also include debit and credit card payments. A direct debit transaction requires authority from the customer, where the customer must confirm the amount being deducted and the frequency of payments if ongoing. Manual bank transfer (EFT) which is initiated by the customer (even if it is scheduled within their internet banking) is not classified a direct debit transaction.

Ezypay accepts direct debit and online card payments via Visa, MasterCard and Amex.

Direct debit first requires collecting authority from a customer using a Direct Debit Request form. Once the customer has given their authority to withdraw the amount specified in the agreement, the funds are debited from their account according to the instructions set in the agreement.

Ezypay offers online sign-up forms to easily collect direct debit authority from customers and sign them up to payment plans. Once a payment plan is in place, Ezypay will debit the customer until either the total payment amount is collected, the debit end date is met, or the payment plan is cancelled.

Direct debit payments are generally set up by a business according to the preferred payment frequency and amount. These can be set up manually by completing a direct debit authority form and submitting it to the bank, or through a recurring payment system to automatically debit the customer according to a direct debit payment plan.

A direct debit can easily be set up in Ezypay using an online sign-up form or by collecting and entering a customer’s details in person. The customer can then be added to a direct debit payment plan.

Direct debit is one of the safest payment methods available as they are often governed by either the bank or card scheme used for payment. Transactions are constantly monitored and if any fraudulent or unusual payments are detected, they will simply be declined. PCI compliant payment providers, such as Ezypay, also go through stringent compliance checks to ensure the highest level of security for payment handling and storage is maintained.

Unlike card payments which are processed instantly, bank direct debit payments have a 3-day processing time before they can be marked as successful. If the payment fails, you will often be notified before the end of the 3-day cycle. Direct debit can also become costly and difficult to implement when going straight to the bank so a third-party processor such as Ezypay is often preferred.

There are 2 main methods for introducing direct debit to a business. The first method is by going directly to the bank to set up the direct debit facilities used to collect payments. This process can become costly and requires a merchant bank account and approval from the bank to do so. The second method is to use a third-party payment processor, such as Ezypay. This is much easier to implement and manage, especially for small to medium-sized businesses.

You can apply for an Ezypay account at www.ezypay.com/apply-now.