Frequently asked questions

Pre-Authorized Debit

What is customer recourse?

Due to the pull-based nature of Pre-Authorized Debit, protection is offered to safeguard customers using this payment method. Any customer paying a business via PAD may submit a claim for a refund in the rare event that they believe the payment has been collected mistakenly.

Both banks (the customer’s bank and your bank) must judge whether their request for a refund is a valid claim by providing sufficient evidence.

Do I need an authorisation code or permission from my bank?

There is no need to talk to your bank. We provide you with everything you need to sign up online and start taking payments.

What kind of payments is it good for?

They are particularly good for:

  • Regular payments (e.g., subscriptions or regular donations)
  • Customers with an ongoing relationship (e.g., account customers)
  • Invoicing for services (e.g., accountancy, tax advice, etc.)

What kind of payments isn’t it good for?

  • Transactions which need an instant clearing (e.g., e-commerce)
  • High-value, one-off payments for liquid goods (e.g., gold bullion)
  • Transactions likely to experience chargebacks (e.g., gambling)

What are the payment timings for PAD?

Unlike card payments, PAD payments don’t clear instantly. Once GoCardless has collected payment from your customer we hold the money in case of payment failures for two working days, before paying it out to your bank account.

Learn more about PAD payment timings with GoCardless here.

Can I collect one-off payments using PAD?

Yes - although Direct Debit is most well-known for recurring payments, it can also be used to collect one-off payments.

Can I easily change Direct Debit provider?

Yes - the bulk change process allows you to move Pre-Authorized Debits between providers easily.

GoCardless has experience managing the entire transfer process for hundreds of large merchants. Your existing customers won’t need to take any action whatsoever, and we offer this service free of charge.

Contact us

Contact sales +44 20 8338 9537


Seen 'GoCardless LTD' on your bank statement? Learn more

GoCardless Ltd., Sutton Yard, 65 Goswell Road, London, EC1V 7EN, United Kingdom

GoCardless (company registration number 07495895) is authorised by the Financial Conduct Authority under the Payment Services Regulations 2017, registration number 597190, for the provision of payment services.