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Use cases for Direct Debit

Chris Hooper
Written by
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Last editedMay 20221 min read

BECS Direct Debit is most suitable for…

  • Taking regular payments, such as gym memberships, rental payments, or any kind of recurring subscription. In these cases, retention rates are exceptionally high, as Direct Debit eliminates customer churn from expired cards.

  • Invoicing for services where instant payment isn’t necessary, such as those provided by accountancy firms and marketing agencies.

  • Taking payments from account-based customers with whom you have an ongoing relationship, such as wholesalers.

In these cases, using Direct Debit automates the collection process and this offers a number of benefits for businesses and their customers if compared to other popular payment methods such as card payments.

For businesses, Direct Debit is cheaper than card payments and enjoys a higher payment success rate. Automation also allows businesses to spend less time on financial admin and eliminate the issue of late payments.

For customers, it is a set-and-forget method as there is no need to update payment details when cards are lost or expired, or the subscription amount changes.

BECS Direct Debit is less suitable for…

  • Transactions which need immediate clearing. Direct Debit payments are not instant - see our timings guide for more info. For instant payments, PayTo is the best option.

  • Liquid assets and high value goods, such as cars or currency. If a bank account is debited without authorisation, the merchant may be exposed to financial loss and could be a target for fraudsters.

Direct Debit payments through GoCardless

Our simple online interface makes it cheaper and easier to access and use BECS Direct Debit than ever before. This is great for:

  • Online businesses: GoCardless offers a simple API that can be easily integrated with your website and CRM, automating previously manual processes.

  • Invoicing: The GoCardless API will let you build automatic reconciliation into any invoicing software.

  • Small businesses: There's no need to talk to your bank and to go through the lengthy processes of applying for access to Direct Debit. GoCardless does it all for you.

Over 70,000 businesses use GoCardless to get paid on time. Learn more about how you can improve payment processing at your business today.

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