Let’s say it right from the start: the title is deliberately catchy because it’s not easy to imagine a world without financial institutions. So how can we cut down on time wasted by volunteer co-owners at the bank? By using automatic direct debits, of course!
This type of service has been used for more than 20 years in Canada. In fact, it is the most widely used automated payment method for recurring payments, the most secure and the least expensive. Contrary to what one might think, this system is not complicated. There are 3 simple steps. The co-owners Board:
- Is authorized (in a form) by the co-owner to withdraw the monthly fees from their account, and requests a cheque specimen;
- Via its representative, enters the payment details in the appropriate online form, depending on the selected supplier;
- Sends the payable amounts based on the predetermined frequency, which is usually monthly.
- Limits volunteer time for an activity that is important, but without added value, if it can be done quickly;
- Avoids: -preparing deposit slips;
-trips to the bank;
-late payments due to a delay or the temporary absence of the authorized volunteer;
- Secures and regularizes your receivables.
This question is frequently asked. Canadian regulations governing pre-authorized debits are among the most stringent in the world. Payments Canada is the regulatory body that oversees the industry. Operators who do not comply with the obligations of the regulatory body face stiff penalties. Also, isn’t it reassuring to know that your neighbour will process your payments as agreed?
There are several companies that offer this tool. Ask them for more information. They offer a wide range of benefits at a very low cost.