Debit Cards for Debt Repayment: Adding Efficiency and Certainty to Debt Payments

Lending or advancing funds to consumers comes with a risk of not being repaid.

Payment risk can be greater for lenders and funds advance companies that rely solely on legacy debt payment methods, such as ACH and checks. These methods have a greater risk of return because they cannot provide real-time payment authorization. Converting payments from ACH to debit cards can result in significant cost savings and decreased transaction processing time.

This report highlights the benefits and downfalls of various debt repayment methods and explains why converting all or a portion of these payments can increase customer satisfaction and potentially create significant cost savings. TabaPay commissioned Aite-Novarica Group to collate information from interviews with executives at four organizations that lend or advance funds and other key players in the debt repayment or payment processing industry. Additional insights included desk research, previous Aite-Novarica Group research, publicly available information, and the author’s experience managing debit card, credit card, and loan products at financial institutions in the U.S.

Clients of Aite-Novarica Group’s Retail Banking & Payments service can download this report.

This report mentions TabaPay and Visa.

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