Small businesses grow into medium-sized ones - and beyond

Grow your business with NuPay

Offering authenticated payment and collection solutions helps businesses to start small and increase their offerings as the business grows, using a single service provider committed to their customers' success.

Most businesses start out small with limited capital and some have gone on to become industry giants over time. NuPay has a full suite of payment and collection solutions to help small businesses grow into medium-sized businesses and beyond. Having the right tools to increase your collection rate, as well as having a product that fits with each function of your business, can be what it takes to put a business on the path to success.

AEDO (authenticated early debit order), in conjunction with NuPay's range of collection solutions, can help any micro-enterprise grow into an SME and beyond.

Most businesses start out small with limited capital and some have gone on to become industry giants over time.

"A large portion of our customer base effectively started out as micro-enterprises, being one-man shows," says Keith Wrede, deputy managing director for NuPay. "Our proven solutions have helped these businesses grow into small, medium and corporate-sized businesses by partnering with the right collection and payment solutions like AEDO, which is one of the best mechanisms available today to ensure collections growth."

AEDO is a PIN-based mandated transaction that can be used in any business that needs to collect fees for any type of service or credit offered. Collections would typically occur over a number of months and would include collections for education fees, subscriptions, rentals, credit repayments, monthly services and more.

“Customers will dispute a direct debit order simply because they don't want to pay,” says Keith Wrede of NuPay.

Being an authenticated collection mechanism means that once the AEDO transaction has processed successfully, the collection is finalised and this finality leads to healthier and better cash flow. The disadvantages of standard and enhanced debit orders, such as disputed debit orders, which adversely affect cash flow, are not a factor with AEDO and the business can carry on with its normal course of business and not spend time and effort on payment follow-ups and collections, allowing businesses to focus on their core functions.

Wrede says that where DebiCheck is concerned, “it will now be up to the consumer to authenticate and approve a debit order at the start of the new contract, and the consumer will need to agree to the terms of the payment schedule, ensuring the user authorises the details. This is known as authorising the debit order mandate.” 

There are other ways to authorise the debit order mandate, including through cellphone banking apps, internet banking and even at an ATM, but to speed things up, having your phone number registered at the bank will be the quickest. 

The fastest way the bank can use to check with you will be by sending you a USSD message with the details of the mandate and the user will need to reply to the USSD message. Of course, this will depend on the consumer's bank having the correct cellphone number on record.

If your bank does not have your cellphone number, it can delay the finalisation of your contract with the DebiCheck user. The consumer also needs to understand that if the DebiCheck debit order is processed according to the terms that you agreed to, you will not be able to reverse the transaction (unless you are asking the bank to investigate a fraud charge against the DebiCheck user).

DebiCheck is safer than normal debit orders, because:

  • You have to authorise the mandate details with the bank, so both the bank and you will know what going to be processed and when it is due.
  • The bank will check the details before allowing your account to be debited.
  • You will be able to suspend the mandate if anything goes wrong.
  • You will be able to claim the funds back under certain conditions.

You have certain obligations as well:

  • You must ensure that your correct cellphone number is always registered with the bank.
  • You must make sure your account has enough money to honour the transaction.
  • You cannot reverse a transaction that has been processed according to the terms of the agreement.

For a company like NuPay, this means strengthening relationships with banks and their customers to ensure the end-consumer leverages the full benefits of DebiCheck and to ensure customer service delivery is smoothly regulated according to industry standards.

NuPay is a PCI-DSS certified transaction service provider and is the leader in managed electronic payment solutions. NuPay offers proven business solutions within the authenticated (terminal-based, card present), non-authenticated (card not present) and web-based product space, providing secure solutions for payments and collections to all industries.

NuPay is a division of the Altron Group.