EFT draft day

[bjhcpa]

any statistic out there that says what day of the month people are more likely to have funds in their account.

When we first starting doing efts we processed them on the 15th of the month. Had an eft processor that said more likely to be money in the bank on the 15th and you miss that mad dash to pay bills on the first most people do.

Now hearing that more likely to be cash in bank on the first as people are gearing up to pay their bills.

curious if there is any statistic out there anyone has heard to confirm either way.

[Bombay Tan]

Actually run them on the day they are due and that does not seem to be a problem. In the past few months we have seen an increase in declines. For the most part the customers did provide us another valid cc, but some have cards that are probably at the limit.

I once heard that make sure the cc was run first thing in the morning so your draft was one of the first to be pulled...

[Geoff B]

This is a good post. It makes me wonder? We do ours on the 25th. My thinking was to hit them towards the end of the month, before they have rent, mortgage, etc. However, we have about a 15% NSF rate. We always re-draft and collect more later on. However, that takes time.

[Ezliving_Jim]

I draft everyday. No real discernable trend on NSFs except, perhaps, a slight increase during the last few days of the month.

[Beach Bum]

We proposed to draft on the 15th, but we will draft whenever the customer wants.

[Jones]

We draft daily. Seems that Friday afternoon or early Saturday morning I can most likely clear any declines that are on a debt card.

[sedmiller]

We do ours on the 6th of the month. We have about a 20% rate of decline/NSF/bad cc. Doesn't seem to matter whether we have 80 or 300 - it's always about 15-20%.

Do any of you impose penalties for declined charges? How do you collect?

[Geoff B]

We have a $5 NSF fee. Many will clear the next day, or will bring in a new #, but they must still pay the NSF fee. The fee is spelled out in our agreement.

[ertanman]

We have a $20 decline transaction fee regardless of the reason, draft on the first of the month, re-draft declines every Monday. I feel fortunate that our decline rate is at around 5% or less each month.

[BIG AL]

We do it both ways. One of my salons, we draft everyday and the other we draft on the 15th. There are no more declines one way or the other. We charge $25, the same as if it was a check.