The General Cuts Physical Check Fees by 80%
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User Rank: Apprentice
12/5/2014 | 11:05:23 AM
Interesting to recognize how efficient German insurers process payments
Many thanks for these interesting insights.

Maybe it could be interesting for you to learn from Germany. Direct debit is very popular and common practice for paying insurance premiums, across all German-speaking countries.

For receiving payments almost everybody accepts bank transfers (electronic fund transfers). As far as I read, the average costs per payment transaction are less than 10 Cent (0.1 €) for big insurers in Germany. The average costs per return (refusal) of a direct debit are less than 1 €. Manual intervention is required in less than 1 of 10,000 (ten thousand) cases.

PayPal and similar payment methods are much more expensive. Any credit card is much more expensive. Thus, nobody likes to pay insurance premiums via these alternatives.

The avarage duration between triggering an incoming or outgoing payment and the posting of a debit or credit entry on the bank account (value date) is just one day. The delay with PayPal and similar payment methods or credit card payments is much longer.

Best regards,


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