- andcards in partnership with Stripe enables all customers to accept direct debit payments in-app.
- US-based coworking operators can accept payments with ACH direct debit while flex workspaces located in the EU are starting to enjoy the benefits of SEPA.
- All andcards customers can take advantage of this new feature at no extra cost.
- Direct debit is going to make payments at coworking spaces faster, safer and cheaper than ever before!
Collecting payments is probably one of the most challenging parts of coworking space management. Members’ bank cards expire regularly and return failed payment messages. Transaction fees sometimes go as high as 5%, which seems really unfair to operators.
Direct debit, which is a scenario that allows a workspace administrator to transfer money from a member’s account on agreed dates solves both issues and adds even more benefits on top of this.
andcards in partnership with Stripe is happy to announce that now direct debit payments are available to coworking spaces all over the globe: in the US (ACH), Eurozone (SEPA), the UK (Bacs), and Australia (Becs).
This newly rolled out feature is going to take billing at a coworking space to the next level and make it even more convenient for tenants and effortless for administrators.
How Does Direct Debit Work?
andcards' powerful billing automation already allows spaces to generate invoices and collect payments through bank cards such as Visa and Mastercard. When tenants move in, you just assign a membership plan and andcards takes care of bills and payment collection.
Now, in addition to cards, users can connect their bank accounts for payment settlement. The process of adding an account is exactly the same easy as adding a card. When the account is connected, you will be able to charge it in a click, just like you do with members’ cards.
Direct Debit Benefits for Coworking Spaces
- Save on payment processing fees. Direct debit is much more cost-effective than card payments. For instance, using the card networks in the US will cost you $87.3 for a $3000 transaction (at 2.9% + 30 cents rate) while the charge for ACH direct debit will make as low as $5 for the same amount (at 0.8% $5 cap rate), which is much cheaper.
- Reduce the number of payment failures. According to statistical data from 3% to 5% of card payments fail each month. This mostly happens due to card expiry or cancellation. With direct debit, failure rates are less than 1% because the system uses a customer’s bank details, which expire or change next to never. Moreover, bank cards often have transaction limits. For instance, sometimes you can’t charge more than $8000. Bank accounts, however, don’t have such limitations.
"With connecting direct debit to our app, we can offer our customers more flexibility of paying the subscription. Moreover, the system of accepting payments is totally automated, which saves time for administrators at no processing fee charged by andcards. For members it's pure joy to pay seamlessly through their favourite app."
— Kate Moras, Co-founder of HUSTLE.
- No late payments anymore. Manage subscriptions more efficiently. Collect payments from members when they are due and have your money on time. Once authorized, you can bill your customers directly, without chasing them for payments.
- Insert payment details only once. The customer doesn’t have to input their bank account details each time they want to pay with Direct Debit. Just like cards, bank account details are securely stored by Stripe, so members just pick the preferred payment method when paying by bills.
- Get flexibility. With Direct Debit, you can change the amount and frequency of payments without required re-authorization from the customer, which saves from multiple administrative hassles.
- The feature is free to use on andcards side. Unlike other coworking systems, andcards doesn’t charge any commission from customers for connecting or using direct debits. You pay only Stripe’s payment processing fees that depend on the country but stay really low compared to cards.
It’s impossible to overestimate the importance of this incredible billing system improvement. Finance is always a concern for every coworking space. No exceptions. The new Direct Debit functionality presented by andcards is another missing piece of the puzzle to make billing and payments at your coworking space really simple, streamlined, and convenient both for members and administrators. Just give it a try and feel the difference!
Not an andcards customer yet? Book a demo call with our product expert to see how the platform can automate your billing and what else can it do for your business.
