Pinch's default Direct Entry processing limit is determined by the overall risk profile of our client portfolio and is set by our acquiring partner.
The primary factors that limit this to 10,000 are pre-payment exposure risk and chargeback risk due to the lack of arbitration on the Direct Entry dispute process.
Your payer's bank has ultimate authority over whether a dispute is successful or not. This means that if you process large payments and your payer disputes it, there is no independent arbitrator to assess whether the payment is valid unlike card payments where this is the role that the card schemes play (Visa, Mastercard, Amex). On top of this, a payer has up to 7 years in which they are entitled to file a chargeback via this process prolonging our exposure to defaults or business closures.
Your payer's bank has ultimate authority over whether a dispute is successful or not. This means that if you process large payments and your payer disputes it, there is no independent arbitrator to assess whether the payment is valid unlike card payments where this is the role that the card schemes play (Visa, Mastercard, Amex). On top of this, a payer has up to 7 years in which they are entitled to file a chargeback via this process prolonging our exposure to defaults or business closures.
This inherently makes all direct debit payments significantly riskier than any card payments. Which amplifies any other risk factors such as when your customer is paying you for services or goods not yet rendered. This isn't to say that Direct Debit payments are bad as their benefits over EFT deposits for low-risk reoccurring transactions such as subscriptions are numerous for both merchant and client.
As the Merchant on Record we are the accountable payer in the event that a dispute is lost. As part of our merchant services agreement with you, we have a direct debit arrangement that allows us to deduct payment from you in the event a dispute is lost, but if the amount is very large our ability to debit you heavily depends on your own business cash position which is not something we have any true control over.
Given this, it's unlikely our acquirer would approve a change in most cases unless the risk-profile of your business and invoicing process is low.
Given this, it's unlikely our acquirer would approve a change in most cases unless the risk-profile of your business and invoicing process is low.
If you think you have a valid case for having your direct debit limit increased please email compliance@getpinch.com.au and outline your reasonings. These are taken on a case-by-case basis and are presented to our acquiring partner for approval.
In the event you are successful be prepared to supply a significant security deposit and for the transaction fees on large payments to be higher than regular payments (Ie, uncapped % as opposed to fixed rate). You may also need to make significant changes to your current contract strategy as well as reduce other risk elements such as switching from prepayment to post-payment to adequately satisfy Pinch and our acquiring partner(s).
If you have any further questions feel free to reach out to either compliance@getpinch.com.au or support@getpinch.com.au and we will assist you.
In the event you are successful be prepared to supply a significant security deposit and for the transaction fees on large payments to be higher than regular payments (Ie, uncapped % as opposed to fixed rate). You may also need to make significant changes to your current contract strategy as well as reduce other risk elements such as switching from prepayment to post-payment to adequately satisfy Pinch and our acquiring partner(s).
If you have any further questions feel free to reach out to either compliance@getpinch.com.au or support@getpinch.com.au and we will assist you.