How do i debit someones bank account?

[birdman557]

Hello. I am opening a payday loan business online and dont know one thing. Does anyone know a software that will transfer money to someones bank account and then debit the bank account on a certain day? Plz let me know if you know anything. Thanks.

[jeffweico]

You would need authorization to debit the account. Here in the US, it is normally done through ACH processing. You have to apply for it and be accepted. You can then use the ACH system to debit the account. But you have to retain proof of authorization. Usually, that would be a paper check, or a statement the debtor signed giving you permission to debit the account for a certain amount of money on a certain day.

I have no idea what they use in Canada, but I would think they have a similar system.

BTW: It seems strange to me that you don't have this part of it down and you are starting this business. You may want to check what the laws are in Canada, because the PayDay Loan business is HEAVILY regulated. You have to be licensed, in many US states you have to post a bond, etc. It is not as simple as setting up a website.

[GreenBean]

Originally Posted by birdman557

Hello. I am opening a payday loan business online and dont know one thing. Does anyone know a software that will transfer money to someones bank account and then debit the bank account on a certain day? Plz let me know if you know anything. Thanks.

Why on earth would you commit yourself to this high interest loan arrangement.

You need to go to your bank with the account info of the party that needs to be paid. Bank will do the work.

But make sure you are safe if anything goes bad.

Be very very careful of this type of loan.


Payday loans attract too high rates of interest.

[GhostOfAmazon]

Originally Posted by jeffweico

You would need authorization to debit the account. Here in the US, it is normally done through ACH processing. You have to apply for it and be accepted. You can then use the ACH system to debit the account. But you have to retain proof of authorization. Usually, that would be a paper check, or a statement the debtor signed giving you permission to debit the account for a certain amount of money on a certain day.

I have no idea what they use in Canada, but I would think they have a similar system.

BTW: It seems strange to me that you don't have this part of it down and you are starting this business. You may want to check what the laws are in Canada, because the PayDay Loan business is HEAVILY regulated. You have to be licensed, in many US states you have to post a bond, etc. It is not as simple as setting up a website.

Holy crap Jeff, is there anything you don't know?

I am humbled by the knowledge and advice you provide to members here. Thank you for your insight (even though I'm not interested in a payday loan business, it's great to know someone around here knows their stuff!)

[spindoctor]

Originally Posted by birdman557

Hello. I am opening a payday loan business online and dont know one thing. Does anyone know a software that will transfer money to someones bank account and then debit the bank account on a certain day? Plz let me know if you know anything. Thanks.

Didn't understand that? did you say your opening a payday loan business?

or taking a pay day loan out?

Your going to struggle if your looking for advice on here for help in opening up a payday loan business.

Payday loan companies spend millions on advertisement. I hope you have a good budget to advertise. Thats if your looking to start a payday loan business.