Last week or so, my client asked if they could use direct debit as optional payment method. To me this is really valid point. They said that when offering their service from iTunes, they pay hefty 30 % commission for Apple. When offering service to be paid
with credit card, commission is nearly 2,5 % to 4,5 % per paid service. When discussing with direct debit option, they were really keen on it.
They know their customers, they offer continuous service, where customer pays every month for subscription. There are recurring credit card options, but too many their younger generation customers have credit cards.
We have been talking and making some plans how direct debit could be really useful when ordering online.
Now I would like to know few things? First, how high are direct debit fees in your bank for merchant? And secondly; have you seen really international online store offering direct debit as payment option.