Ghana Water Company (GWC) must consider the use of Direct Debit payment system to help reduce revenue losses through customers? non-payment of tariffs says the Chief Executive of Ghana Interbank Payment and Settlement Systems (GhIPSS).
Mr Archie Hesse said the Direct Debit provides the best option to Ghana Water to reduce losses.
GhIPSS operates the national electronic payment system.
The Direct Debit, which is an electronic payment system, enables a bank customer to instruct its bankers to make payments to a third party.
The National Water Company has indicated its decision to pilot a prepaid metering system for water as it battles commercial losses due to the refusal of some consumers to pay their water bills.
Besides the challenge that the system poses, prepaid metering for water is not well developed and some civil society groups have criticised the idea, saying it could deprive the poor of a basic necessity of life.
Mr Hesse explained that since the Direct Debit is electronic, once the customer issues the instruction, the deductions and subsequent transfers will be made automatically.
He added that, customers who pay by Direct Debit would not need to visit the banking halls to issue such instructions ?and that convenience should encourage many more to pay,? he said.
GhIPSS has different electronic payment systems that various institutions are applying for easy collection of monies due them as well as making payments.
Mr Hesse said GhIPSS could support GWC, in case it decides to introduce the prepaid meters, by enabling customers to pay their bills with their ATM cards on the hybrid Point of Sales terminals which are being deployed.
He said his outfit would not hesitate to have discussions with GWC and other utility companies on how they could deploy various electronic payment systems to make it easier for them to collect monies due them with an audit trail.
The GhIPSS Boss expressed optimism that with various services being rolled out; there should be a lot of flexibility and convenience in payments of any form in the ?very near future, such that only the very recalcitrant ones will continue to default in payments?.
Source: GNA
