By SHAHEERA AZNAM SHAH / Graphic By TMR
Affin Bank Bhd introduces an alternative financial transaction method that facilitates its clients to better manage recurring payment processes between businesses.
Affin said the Direct Debit will enhance business merchants’ financial transactions by enabling an automated collection directly from their clients’ accounts.
“The new product offers a more convenient method for both businesses as well as billing organisations. It allows businesses to collect payments directly from their clients on a recurring basis.
“Our customers can determine when and how much to debit their clients once the Direct Debit mandate is obtained from them,” it said in a statement.
According to the bank, the product was rolled out together with its Shariah-compliant arm, Affin Islamic Bank Bhd, under the banks’ cash management solution portfolio.
Affin group CEO Kamarul Ariffin Mohd Jamil said the bank is honoured to be among the country’s 15 financial institutions which offer Direct Debit.
“We hope this product will set a mark in making our customers’ transactions more efficient, convenient, effective and secure,” he said in the statement.
Affin said paying through Direct Debit is comparatively more cost effective against other auto-debit services as it includes some added value features.
“Direct Debit allows for ease of reconciliation as it provides payment reference information.
“It is built with a secure payment infrastructure and businesses can collect payments from customers through 22 participating banks,” it said.
Affin aims to acquire at least 30 sizeable Direct Debit merchants with a minimum annual collection of RM50 million in transaction value by the end of 2018.
Affin’s other payment methods under its cash management portfolio include standing instruction, financial process exchange and JomPAY.
Home appliance producer, Cuckoo International (M) Sdn Bhd, is Affin’s first Direct Debit merchant.