Ryan Pearcy explains how it works. Think of it as an alternative direct debit, with the agreement in place but the payment on a card. The card is checked with a small authorisation, like at a petrol pump, then sits in the background. Neither Adfin nor the firm ever sees the card details, which are held by the payment processor, and the client is told at least one business day before money is taken. Some clients prefer it, especially those using virtual cards they can cancel whenever they like.
John Toon asks about the regulation side, and Indi Tatla talks about the data standards involved and where payments are heading, towards a ledger that runs in real time from the contract through to reconciliation.
From episode 6.39 of Digi-Tools in Accrual World, with Indi Tatla, John Toon and Ryan Pearcy.
Digi-Tools in Accrual World is The Loop's weekly accounting tech podcast, hosted by Ryan Pearcy, John Toon, Indi Tatla, Eriona Bajrakurtaj and Ian Gregory.
Full episodes: https://digitoolsinaccrual.world
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