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Use cases for Direct Debit

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David and his team manage relationships with banks, scheme providers, and other parties involved in payment transactions in the UK and Scandinavia. David has worked in the finance and payment industry for over 12 years, primarily focusing on the BACs and Faster Payments schemes. He has sat on governance committees and chaired cross-government public sector working groups. David is also a regular attendee at the SIBOS and MoneyLIVE financial conferences. ConnectSee full bio

Last editedDec 20231 min read

The level of control Direct Debit gives merchants makes it perfectly suited to recurring payments and invoicing. Its 3 day payment cycle makes it less suited for payments where instant clearing is required.

Direct Debit is great for…

Regular payments such as subscriptions. Retention rates are exceptionally high, as churn due to card expiry is completely eliminated. An example would be membership organisations.
Invoicing for services where instant payment is not required. Examples are businesses such as marketing agencies and driving schools.
Account customers who have an ongoing relationship with the merchant. Direct Debit automates the collection process and lets customers simplify the way they pay. Wholesalers are a good example (read Has Bean Coffee's story).

Accept Direct Debit payments for your business with GoCardless

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Direct Debit isn’t so good for…

Transactions which need immediate clearing. Direct Debit payments are not instant - see our timings guide for more info. For urgent payments consider Faster Payments or Instant Bank Pay when funds need to arrive on the same day, they are sent.
Liquid assets and high value goods, such as cars or currency. The Direct Debit Guarantee could make these a target for fraudsters.

How to collect Direct Debit payments with GoCardless

1.

Create your free GoCardless account, access your user-friendly payments dashboard & connect your accounting software (if you use one).

2.

Easily set up & schedule Direct Debit payments via payment pages on your website checkout or secure payment links.

3.

From now on you'll get paid on time, every time, as GoCardless automatically collects payment on the scheduled Direct Debit collection date. Simple.

Collect by Direct Debit easily — link your Xero account to GoCardless and set up Direct Debit payments!Learn more about Direct Debit collections

Direct Debit payments through GoCardless

Our simple online interface makes it cheaper and easier to access and use Direct Debit than ever before:

Online businesses: We are the leader in online Direct Debit, with a simple API that integrates with your website & CRM. This automates the manual processes associated with other providers.
Invoicing: GoCardless has partnerships with Sage, Xero, FreeAgent and KashFlow to reconcile your Direct Debit payments automatically.
Small businesses: Set up online in under 5 minutes with our simple online interface.

Click here to find out more about collecting Direct Debits with GoCardless.