5 Direct Debit myths debunked
It’s been a British institution since the 1960s, but in the last half century, Direct Debit has gone from clunky and paper-based, to sleek, slick and simple.
In this post, we’ll clear up some common misconceptions around Direct Debit, so you’re up to date on the UK’s most popular method for collecting recurring payments.
Myth 1: Gaining access to Direct Debit is difficult
If you want to start processing payments by Direct Debit today, you can choose direct or indirect access. In the past, access to Direct Debit was only available directly, through your bank. The process was, and in some cases remains, slow. It also requires significant effort and expense for the person applying – in setup and ongoing management.
For very large businesses with high transaction volumes, who can meet the revenue criteria of banks and don’t mind hiring people to manage the process (and sourcing their own software), direct access may still be the preferred route, since it enables them to negotiate the lowest transaction fees.
The other way to access Direct Debit is ‘indirectly’ via a third party provider like GoCardless. These providers manage the Direct Debit process with the bank on your behalf. They are an attractive option for many businesses; they can provide an online plug-in-and-go service, significantly reducing setup time and cost and ongoing management and admin. And choosing a third party provider doesn’t necessarily mean high transaction costs (see myth 5).
Myth 2: Direct Debit is unsafe
Putting New Zealand on the PaymentsMap
It seems not so long ago that we revealed our launch of Australian Direct Debit with accounting software partner Xero and already we have more good news to share. You can now collect Direct Debit payments from customers in New Zealand through GoCardless!
Growing our payments network: next stop, Denmark
Last month we announced our launch in Australia, this month we’ve turned our attention to Scandinavia and are excited to announce that we can now take payments via Danish Direct Debit.
It’s another step towards our mission of creating a global bank to bank payments network and takes the the number of Direct Debit schemes that we offer to 5 (covering 23 countries), with lots more in the pipeline.
The Denmark launch means our customers in Europe or Australia can now take Krone-denominated payments from Danish customers.
GoCardless goes down under - collect payments in Australia
We’re really excited to announce that you can now collect payments from Australia with GoCardless. The launch means our customers can now take payments from 24 countries and it brings us one step closer to delivering a global bank to bank payments network.
We have heard from many of you that Australia is an important existing or new market for your business, so we’re really looking forward to supporting you and your customers.
We think Direct Debit is the perfect solution for collecting payments, and it seems that customers in Australia agree; almost 36% of non-cash transactions were made through Direct Debit* in 2017, with trends indicating that this number will grow in 2018.