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Thursday, May 22, 2008

Make it easy to pay by bank transfer

Mr. Tan,
When I get my invoices processed, my Accounts department will start processing if I provide an email copy in advance. They still need an original (i.e. signed) invoice before releasing the cheque. I think that this is required as an audit trail.

A direct debit payment (DDA) has to be done through banks. I understand that it is a hassle to arrange with the bank such a payment mode. I think that there are extra charges or delays. For one-time payments, perhaps it's much easier to pay by cheque.

REPLY
We are caught in the old ways of making payments, due to various reasons. Mostly, it is the reluctance to try a new way.

Many people continue to write cheques and mail them. The receipients have to open the envelope and visit the bank to deposit the payment into their account.

In many other "advanced" countries such as Cjhina, the payee instructs the bank to make the transfer to the payor. The bank gives detailed information to the payor about the payment - sufficient for audit trail, etc

I hope that employees of commercial organisations or banks reading my blog will ring this matter up to their bosses.

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