Reduce your collection processing costs and give your customers a more convenient payment option with Merchants Bank’s Direct Debit tool.


What is Direct Debit?

Direct Debit is the electronic transfer and collection of receivables from your customer’s bank accounts anywhere in the U.S. through the Automated Clearing House (ACH) system. 


How Does Direct Debit Work?

  • You receive authorization from your customers to collect their payments using direct debit. 
  • You create a file through ACH software or Merchants Commercial Online Banking, which many of our customers find to be the most efficient. 
  • We process the ACH files based on your instructions. 
  • Your customer’s payment is withdrawn automatically from their account at the opening of the bank business day they authorized. 
  • Your account is credited for the total file amount and is immediately available as cash.


Benefits of Direct Debit

  • Reduce the costs of collecting, depositing and reconciling checks.
  • Stop waiting for balances to become available, as with traditional deposits.
  • Forecast cash flow more accurately.
  • Eliminates the possibility of lost, delayed, stolen and forged checks. 
  • Increase customer retention since customers set up to make payments electronically are less likely to move their business.
  • Provide service many customers have come to expect.


Which businesses should use Direct Debit?

Our Direct Debit tool is ideal if your business:

  • Wants to streamline the receivables function and reduce paperwork 
  • Wants to eliminate costs associated with collecting and depositing customer payments
  • Has recurring monthly payments from the same customers


To get started, contact a Treasury Management Specialist or Commercial Banker. Discover the Merchants Bank difference.


Additional Resources:

Learn more about our other Treasury Management tools for collection, which help you collect and manage payments from your customers or vendors.


* Subject to approval