AEDO or NAEDO: Make the decision!

“No great thing is created suddenly, any more than a bunch of grapes or a fig. If you desire a fig, I answer you that there must be time. Let it first blossom, then bear fruit, then ripen”. – Epictetus, c60 120

It has been more than a year since the first blossoms of the Early Debit Order System appeared. With the implementation of this new collection system came the challenge of various growing pains as well as getting to know the ins and outs of such an integrated system. The challenge lay in understanding the flow of transactions via your service provider, through to BankServ and ultimately to the issuing banks. The service providers had to deal with the frustration of late processing and how to provide timely feedback to you, the end-user.
 

It is important to understand the differences between the two product lines, AEDO & NAEDO, as well as the implementation of these in your business. Both these products have moved on to a stage where they can, with the correct application, start bearing fruit.

AEDO and NAEDO each have its own niche in the market, and their unique characteristics can increase your business’s success.

The general perception is that AEDO is more of a hassle because you need the client to be present with his Bankcard and PIN in your office at the time of granting the loan. On the other hand, the benefit is that the client mandates his transaction by swiping his card and entering his PIN. This brings a major benefit: the payment can’t be reversed by the client after you have received the funds in your merchant account.

In contrast to the “more of a hassle to load” AEDO transactions, NAEDO might seems more streamlined and effortless to implement. You don’t need additional computer hardware or terminals (Card readers) to load payment transactions. Your client authorizes the payment by simply signing a paper NAEDO mandate. The mandate includes the bank account number, branch code and deduction amount for a particular date. The major disadvantage of NAEDO is its reversibility. A payment can be reversed for a period of up to 40 days after it has been processed. This means the client can request his bank to reverse the payment after you have received it in you merchant account!

Another decision is weather to use a fully integrated, or stand alone system. The individual service providers develop different front-end applications and software. You can choose between stand-alone repayment modules versus fully integrated Collection and Loan Administration Applications that integrates with both AEDO & NAEDO.

We invite you to speak to us, study the available alternatives and carefully weigh up the various benefits of each product before choosing the product most suitable for your business model.

Remember, service providers are in the business of simplifying your life and adding value to your business experience.