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EFT: electronic direct debit as payment option
Wirecard offers secure and efficient direct debit options to also address those who would like to process their payments via a bank account.
Opportunities with EFT for online retail:
- acquire new customers
- achieve higher sales
- increase market share
- increase turnover rate
Payment systems that rely on cards only exclude significant customer potential. Whereas only 10 to 25% of the customers in Europe use credit cards, nearly all of them have a bank account and many prefer debits or payments.
Wirecard offers a solution for efficient and secure payment from bank accounts, the Electronic Funds Transfer - EFT. This system integrates three account-related options: Direct debit, Bank transfer and Payment in advance.
Wirecard offers merchants processing of EFT transactions in real-time or deferred to the end of the business day. Via a unique identifier, direct debits and credits are automatically allocated to payment, product or purchaser by the Wirecard payment system, and are booked on the same day for merchants with an account at the Wirecard Bank.
The advantages are evident: Utmost efficiency, minimal risk and maximum transparency.
CASE STUDY
Procedure of a Direct Debit
- A customer orders a product from an online merchant and enters his payment data on the website. The data is then transmitted to the merchant’s IT system via a secure connection.
- The merchant’s system automatically sends a request for authorization of the direct debit to Wirecard’s system. Immediately, or batched and deferred, via a SFTP server.
- Wirecard conducts a risk analysis and initiates a request for authorization to the merchant’s bank.
- The merchant’s bank verifies the request and informs the customer’s bank that they have been authorized by the customer to debit his account.V. The customer’s bank debits the amount from the customer’s account and transfers this amount to the merchant’s bank, which in turn credits it to the merchant’s account.
- Wirecard imports all data relevant to the transaction – e.g. possible return debit notes as well, compares them with the requests for authorization provided and makes them available to the merchant as a file or a report as well as via the administrative application ACM.
BENEFITS
Electronic direct debit features
- Fully Integrated Bank and Payment System Solution
- Automatic Processing (in real time or batched)
- Extensive display and assessment of payment procedures
- Automatic currency conversion possible
- Secure data transmission (SSL encrypted)
- Easy connection to the system via XML interfaces
- Automatic check of transaction data provided
- High availability (24 hours a day, 365 days a year)
- Administration via an Account Management System (ACM)
