Use cases for Direct Debit

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 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.

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.
  • Liquid assets and high value goods, such as cars or currency. The Direct Debit Guarantee could make these a target for fraudsters.

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.

To find out more about collecting Direct Debits with GoCardless visit our website.

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