Collection strategies

Root’s managed debit order service has three collection strategies that can be chosen from when setting up a product module.

Strategy	Collection type	Description
`same-day`	EFT-only	This strategy only uses EFT debit orders. On the `payment_date` , Root creates same-day EFT debit order payments and submits them to the bank to be actioned on the same day. EFT debit orders are cheaper than DebiCheck debit orders, but might result in less successful collections.
`debicheck`	DebiCheck, falls back to EFT	This strategy uses DebiCheck for collections, but falls back to EFT-only for policies that failed to accept the electronic mandate. Root will submit the collections three days before the `payment_date`, which results in an `action_date` two days before the `payment_date`. The bank will then attempt collection on the account daily for 5 days. Example timeline: P - 3 days: submit to bank (`process_date`) P - 2 days: attempt to collect (`action_date`) P - 1 days: attempt to collect P: attempt to collect (`payment_date`) P + 1 days: attempt to collect P + 2 days: attempt to collect
`best-effort`	Hybrid	This strategy is the default strategy that uses a combination of two-day EFT debit orders and DebiCheck to optimize for collection success vs cost of collection. For policies that are current, simple EFT debit orders are used. For policies that are in-arrears, DebiCheck collections are used if a mandate has been accepted. If not, EFT debit orders are used.

Strategy

Collection type

Description

same-day

EFT-only

This strategy only uses EFT debit orders. On the payment_date , Root creates same-day EFT debit order payments and submits them to the bank to be actioned on the same day.

EFT debit orders are cheaper than DebiCheck debit orders, but might result in less successful collections.

debicheck

DebiCheck, falls back to EFT

This strategy uses DebiCheck for collections, but falls back to EFT-only for policies that failed to accept the electronic mandate.

Root will submit the collections three days before the payment_date, which results in an action_date two days before the payment_date. The bank will then attempt collection on the account daily for 5 days.

Example timeline:
P - 3 days: submit to bank (process_date)
P - 2 days: attempt to collect (action_date)
P - 1 days: attempt to collect
P: attempt to collect (payment_date)
P + 1 days: attempt to collect
P + 2 days: attempt to collect

best-effort

Hybrid

This strategy is the default strategy that uses a combination of two-day EFT debit orders and DebiCheck to optimize for collection success vs cost of collection.

For policies that are current, simple EFT debit orders are used.

For policies that are in-arrears, DebiCheck collections are used if a mandate has been accepted. If not, EFT debit orders are used.