Payments Collection Solution (Direct Debits)
This is a system that uses direct debits scheme to enable banks to collect payments on behalf of service providers like insurance companies. Direct Debits scheme was commissioned by CBK through Kenya Banker's Association (KBA) clearing house towards the end of 2002.It provides an efficient payment system using the KBA's electronic funds transfer (EFT) format. It permits an originator/service provider to collect amounts due from a payer at the payer's bank by initiating direct debit transfers on a bank account nominated in a Direct Debit Authority. It is solely a method of collecting payments and banks are not responsible for any underlying contract between service providers and their customers (payers).
A bank running our Payments Collection System will benefit as follows:
- Generation of non-funded income through automatic charging per transaction-The bank will charge the service provider for each payment collected on its behalf.
- Mobilization of deposits-Funds collected are credited to the provider's collection account held in your bank.
- Bank's customer loyalty resulting from the convenience offered by the efficiency of direct debits transfers.