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Introduction to Direct Debit using GoCardless

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Summary

An introduction to Direct Debits and GoCardless for Sage Accounting.

Description

What is a Direct Debit?

Direct Debits let you take payments automatically, straight from your customer's bank accounts when due. Customers can set this up by filling out an online Direct Debit form.

A Direct Debit is unique because:

  • Bank to bank payment method - There are no card networks involved, which makes it cheaper
  • Pull-based system - Pull funds when a payment is due, instead of waiting for the customer

We notify paying customers before taking payment and securely collect details using a GoCardless hosted payments page.

For more information, visit GoCardless.com.

What is the Direct Debit Guarantee?

The Direct Debit Guarantee protects customers in the Direct Debit scheme. The guarantee covers payments made by mistake or fraud. It protects customers in three ways:

  • Notify customers before each payment
  • Customers get a full refund for any payment taken in error
  • Customers can cancel a Direct Debit anytime by contacting their bank

What are Direct Debit Mandates?

Direct Debit Mandates protect all payments. They allow you to collect future payments from your customer. You can collect any amount at any time, but you must notify your customer before each payment.

When to use Direct Debit

Direct Debit payments are good for:

  • Regular payments - for example, subscriptions or regular donations
  • Customers with an ongoing relationship - for example, account customers
  • Invoicing for services - for example, accountancy and tax advice

Direct Debit payments are not so good for:

  • Transactions that need instant clearing - for example e-commerce
  • High-value, one-off payments for liquid goods - for example gold bullion
  • Transactions likely to experience chargebacks - for example gambling

Introduction to GoCardless

GoCardless is the UK’s leading Direct Debit provider, providing payment services for more than 75,000+ businesses.

They process transactions with clients ranging from small businesses to household names, including Sage.

The Financial Conduct Authority authorises GoCardless to provide payment services as an Authorised Payment Institution.

Find out more from GoCardless.com.

How does GoCardless integrate with Sage Accounting?

With Sage Accounting, you can integrate with GoCardless to take payment from your customers using Direct Debit.

You can manage the whole process from within your software. Set up Direct Debits with GoCardless.

Pricing

For details on pricing, visit the pricing plans at GoCardless.com.