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February 16th, 2005, 05:39 PM #1Why Do Merchants NOT Do Direct Deposit ?
I sometimes leave checks in my desk draw for a couple months . I have some merchants that offer Direct Deposit and it is nice.
Why would a merchant not do Direct Deposit for their Affiliates?
Is it costly?
Is it complicated?
Is it not easier than printing checks?
I'm not complaining, Honest I'm NOT, I'm still happy i have the checks. I just wish all my merchants did direct deposit.
If someone could tell me why it would not be in the merchants best interest or if a merchant could comment why they have chosen not.dave
February 16th, 2005, 06:07 PM #2
- Join Date
- February 10th, 2005
- Olympia, WA
All of the above. Actually there are several programs available but depending on the size of the merchant the cost of check, envelop and stamp is less. Sometimes they don't include the cost of labor in the calculation. But look at the great return. If they ACHed you the money it is out of their account. Right now they are having the pleasure of gathering interest on the money you haven't cashed.
Wish I was making enough that cashing a few paychecks don't make a difference!
February 16th, 2005, 07:34 PM #3
- Join Date
- January 17th, 2005
I have $5000 in cheques sitting here. I've been unwell and can't get to the bank but because they're international cheques, only I can deposit them. I'm not sure what to do.
February 16th, 2005, 07:54 PM #4
- Join Date
- January 18th, 2005
- Colorado River, Bullhead City AZ
One of the reasons my merchant went with Share A Sale was the direct deposit. They were not interested in writing out hundreds if not thousands of checks.
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February 16th, 2005, 11:59 PM #5
One possible explanation, or at least a part in the whole deal is affiliate participation. Just as affiliates communicate here on ABW, merchants also have their own in-communication and talk about what works, how to improve programs, etc...
Since we have offered direct deposit which is well over a year, including parts of europe, canada, and australia... less than 25% or so of qualified affiliates have signed up for the service - despite the fact that it is the fastest and easiest way to receive commissions. I am guessing that there are concerns from the affiliate side, probably mostly due to security/identity concerns, etc...
I'm not suggesting that this is the only reason why... but it is possible that the response rate to this kind of service has been low and that merchants share that info with one another. It certainly isn't free to setup a direct deposit system, and it does take resources and security measures to pull off... so it is possible that they might not see the cost/benefit considering other merchants feedback, etc... As a general rule, from a merchant perspective... I do think that it (direct deposit) at least APPEARS and may actually be more costly, more complicated, and not as easy to pull of as a check system. Utilizing a network that provides direct deposit as a payment method is probably the easiest way to work this in.
Another factor is the perceived benefit from the merchant perspective of having the check (with their brand name on it) being sent to you as a constant reminder to you that you are earning from their program. Direct Deposits are great, I agree, but they are not as glamourous when they are listed on a bank account like "241057TRANDEP", etc... instead of a nice branded check. Affiliates (or anyone receiving a bank transfer) occasionally are confused as to why that money showed up, etc...
Again, none of these individually make up an answer to your question... and if I were ever recommending a practice - I would definitely recommend that a merchant setup auto-deposit. But it isn't a simple task like writing up a check is....and I can understand why some do not. Of course, I would also recommend that affiliates all participate in direct deposit where available.... but most choose not to.
I would disagree that "interest on the money in the account" has any bearing on the decision. But, then again that's just my opinion. With interest rates so low it just doesn't make sense to me.Thanks,
President/CEO - ShareASale.com, Inc.
February 17th, 2005, 03:45 AM #6
Hi Brian. While your on the topic of commissions, how long does it generally take to "process" commissions from a merchant?
February 17th, 2005, 07:39 AM #7
Since we have offered direct deposit which is well over a year, including parts of europe, canada, and australia... less than 25% or so of qualified affiliates have signed up for the service - despite the fact that it is the fastest and easiest way to receive commissions. I am guessing that there are concerns from the affiliate side, probably mostly due to security/identity concerns, etc... ~ Brian – ShareASale
- Join Date
- January 18th, 2005
- Moved, Asia
If ShareASale extends direct deposit to the rest of the world, I bet that affiliates utilizing the service would be doubled. More importantly that affiliates will be encouraged to sign up and promoting more merchants.IRS
Don't ask why the ball doesn't come.
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