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What are the benefits of Direct Debit?

Chris Hooper
Written by

Last editedJun 20232 min read

1. No more late payments.

With Direct Debit you’re in control – once authorized you can collect payments whenever they’re due without needing your customer to do anything else. So no more chasing customers for payments - they'll be on time every time.

2. Direct Debit reduces your admin time.

Once a Direct Debit has been set up the whole process can be automated. Payments can be automatically taken and tracked each month which significantly reduces the time needed to manage them.

3. It lets you set and forget.

If you’re collecting fixed amounts at regular intervals, you can set up Direct Debit payments then forget about them as they’ll automatically be taken each time they’re due without you or your customer needing to do anything more.

How to collect ACH Debit payments with GoCardless


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


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


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

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4. Direct Debit is more cost effective than card payments.

Using the card networks usually costs around 3-5% per transaction. Direct Debit is typically much cheaper. See our full pricing here.

5. It reduces payment failures.

Roughly 3-5% of card payments fail each month due to card expiry or cancellation. Direct Debit payments use a customer’s bank details, which rarely expire or change so failure rates are less than 1%. Find out why some Direct Debits fail at all, and how you can reduce these instances even further.

6. Direct Debit is flexible.

With Direct Debit, you can change the amount and frequency of payments without needing your customer to re-authorize. This means you can take variable amounts or increase prices whenever you need to without administrative hassle.

7. It improves cashflow.

Late payments impact your cash flow as you won’t know when to expect payments and therefore when you can pay your own bills or buy new stock. With Direct Debit, you'll always know when payments will be arriving so you can plan accordingly.

8. Direct Debit is great for recurring, variable and one off payments.

While Direct Debit is usually associated with regular and recurring payments, it can also be a great option for one-off payments (as long as you don’t need the money immediately).

9. It’s environmentally friendly.

Using paperless Direct Debit is not only great for the environment (no more paper, printing or postage) but it also saves you time and money helping you to streamline your business.

10. Direct Debit is easy to set up and get started.

Direct Debit is often seen as just for big businesses or expensive and difficult to set up but with Direct Debit providers like GoCardless you can use Direct Debit no matter the size of your business or your income. In fact - with GoCardless you can get set up instantly and for free.

Still unsure of whether Direct Debit is a good fit for you? Try our blog post running through both the advantages and disadvantages of Direct Debit, to see if it should be part of the payment mix for your enterprise.

Over 85,000 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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Interested in automating the way you get paid? GoCardless can help
Interested in automating the way you get paid? GoCardless can help

Interested in automating the way you get paid? GoCardless can help

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