Advances On Debit Cards?

[DonP]

Greg what’s the difference between a debit card or credit card ? They can lose both just the same . They can contest payment on both . But yes a telesales agent has a much harder time getting bank info as few people have checks or bank statements.But I think your excitement will be tempered as you see the nsf’s hit because they lost the card . And getting a double payment much harder.By the time your notified of the nsf the moneys long gone . There are tons of fe CO’s that bend over backwards to help agents . None of them want cc business and there’s a reason .

 

[rousemark]

Greg what’s the difference between a debit card or credit card ? They can lose both just the same . They can contest payment on both . But yes a telesales agent has a much harder time getting bank info as few people have checks or bank statements.But I think your excitement will be tempered as you see the nsf’s hit because they lost the card . And getting a double payment much harder.By the time your notified of the nsf the moneys long gone . There are tons of fe CO’s that bend over backwards to help agents . None of them want cc business and there’s a reason .

One other problem with cards, debit or credit, is that they periodically expire and have to be replaced.. When, that happens the insured has to fill out a new draft authorization. Doesn't happen with checking accounts.

 

[theinsuranceman]

Are you sure that your statements have your full account number?

All of my accounts with major banks just use the last 4 digits of the account number.

All the bank statements of clients that I've seen have only the last 4 digits. But he says his bank prints all the digits on his paper bank statement. I don't even have bank statements mailed to me anymore as it's all online on my bank's website.

 

[theinsuranceman]

Greg what’s the difference between a debit card or credit card ? They can lose both just the same . They can contest payment on both . But yes a telesales agent has a much harder time getting bank info as few people have checks or bank statements.But I think your excitement will be tempered as you see the nsf’s hit because they lost the card . And getting a double payment much harder.By the time your notified of the nsf the moneys long gone . There are tons of fe CO’s that bend over backwards to help agents . None of them want cc business and there’s a reason .

Don you're still confused. This is not credit card business, as that will stay as earned for us as the persistency does not justify advances. I'm talking about debit card business linked to a checking or savings account at a normal bank, not meta bank, not direct express, not visa/master card. A normal bank such as First Horizon, Bank of America, etc.

A checking account's persistency is independent if the first draft is by debit card, a written check, or just using routing and account # because they don't write checks. That's because all subsequent drafts are coming from the checking account itself.

What's the difference between a credit card and a debit card you ask? Credit card business is paying premiums with borrowed money, debit card business is paying premiums with money that you already have. Credit card business does not have advanced commissions because it historically has low persistency, and has been paid as earned.

Bank draft has always had much higher persistency than credit card business. In fact high enough that insurance carriers would stick their neck out, playing the probabilities, and advance agents 75% of the year's premium right away.

Debit card business is an extension of bank draft business. So it stands to reason the persistency is exactly the same as if new customer wrote a check, or just gave you the routing # and account # (because they were out of checks, etc.).

Hopefully I've worded this such that you can now understand this. Did someone say something earlier about your command of the English language...lol. That's a joke so relax.

 

[theinsuranceman]

One other problem with cards, debit or credit, is that they periodically expire and have to be replaced.. When, that happens the insured has to fill out a new draft authorization. Doesn't happen with checking accounts.

Rouse that's just not accurate,

I always get a new bank issued debit card in the mail about 45 days before the current one expires. Same with my credit cards. I don't have to sign anything to continue any monthly payments and everything continues with no interruptions. And the customer doesn't have to sign anything either when their card expires and they've received their new card because everything continues for them too.

If the debit card is lost the customer will receive from the bank a new debit card with a different 16 digit # but the checking account # and routing # will stay the same. Since the checking account # stays the same and routing # stays the same, even though the debit card's 16 digit # is different, the electronic draft should continue as scheduled with no interruptions.

 

[theinsuranceman]

Good bank, or violating some banking/privacy regulation. Speaking of government regulations that make no sense. Why is it against the law for me to have no more than 6 monthly automatic deductions in a savings account. How stupid is that? I would rather have all my utility bills & stuff come out of my savings, not checking.......but no can do. Bug govt says 6 is more than enough. I didn't believe my bank, but looked it up on my Googler & boom, actual law. Legal to marry in North Carolina at age 14, but I can't have 8 payments from my savings account.

They raised the age to 16 earlier in 2021...lol.

 

[Allen Trent]

If that phone # on file is your cell phone then don't lose that cell phone. With your account # and your cell phone they could get to your funds.

I wonder if some techie teen could get a burner phone, spoof your cell phone, and get to your funds.

One day we may all go back to carrying cash and hiding the excess in the back yard...lol.

Some clients still work with cash. Just placed a case yesterday with an agent. Farmer paid his annual life insurance premium for his 3 Farm owned life policies with $41k of cash for the 1st years Premium. Didn't care that IRS will get the notification because it is over $10k(soon to be $600)

 

[Allen Trent]

accept premiums from Venmo then forward to

Potentially a violation with state or the carrier unless you are receipting as cash & your Venmo is a legit business account used solely as premium transfer account

 

[rousemark]

Rouse that's just not accurate,

I always get a new bank issued debit card in the mail about 45 days before the current one expires. Same with my credit cards. I don't have to sign anything to continue any monthly payments and everything continues with no interruptions. And the customer doesn't have to sign anything either when their card expires and they've received their new card because everything continues for them too.

If the debit card is lost the customer will receive from the bank a new debit card with a different 16 digit # but the checking account # and routing # will stay the same. Since the checking account # stays the same and routing # stays the same, even though the debit card's 16 digit # is different, the electronic draft should continue as scheduled with no interruptions.

What changes on the card is the expiration date and the 3 didget security number. Either of these will result in a declined payment.

 

[Life Hawk]

Personal opinion, but best to get account #'s. Make the process of buying coverage for your family is an important one. One that requires more than the normal day to day purchases. This isn't a swipe at the pump or Walmart... it's about a long term solution to a problem you 100% guaranteed to face... just like Uncle Willie you are gonna die too. Just don't leave the tab like he did.