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10 important questions to ask when choosing a Direct Debit provider

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Last editedJun 20243 min read

Are you using bank debit (ACH) as a fast, efficient, low-cost method to collect regular fees, subscriptions, or one-off payments from your customers? Or considering adding bank debit to your payments mix?

How do you know if you are getting the best deal from your provider? Does your solution of choice have the flexibility and cost-effective pricing you deserve as a business?

We want to make sure you always get the best solution for your business. In this post, we have highlighted some key questions for you to ask when choosing a bank debit provider.

1. How much does it cost?

Are you charged extra for failed payments? Adding new customers? Reporting? Cancellations? Most third party bank debit providers will charge you a fixed amount per transaction, with additional charges for these extra services. This can easily double your charges, adding to your monthly running costs.

2. Does your bank debit solution integrate with your accounting software?

Can you integrate directly with accountancy software like Xero, Kashflow, Sage50 or QuickBooks? Many bank debit solutions don’t integrate fully with your financial software. That means more hassle and headaches to get your payment data into your accounting system.

3. How much time does it take to manage the entire bank debit process?

From sending out a bank debit form to actually being paid, how long does it take? Days, weeks, or even months? Waiting for mandates to be signed and paperwork to be posted isn’t efficient. You may have to wait weeks before you’re ready to go. And, in business, time is money.

4. How frequently do you want to collect payments?

Are you constrained to one or two dates each month to submit payments? If yes, can you choose these dates to suit your business? Some providers only offer a restricted number of collection days in the month. That can be extremely limiting, both for you as a business and for your customers.

5. Do you get notified automatically if a payment fails?

Does your provider notify you as soon as a payment has failed, with detailed reporting on the nature of the failure? If you’re not informed when payments fail, you can’t react to resolve the issue. Without automatic notifications, you have to rely on lengthy weekly or monthly reports.

With GoCardless, payment failure rates can be as low as <0.5% and we notify you of any failed payments.

6. Can you take one-off, recurring and variable payments?

Does your provider make it easy to create fixed payment plans and set up the one-off payments you need to collect from customers? Sometimes you’ll need to collect a one-off payment, or want to vary the amounts in a payment plan. Many third party providers will charge you for these bespoke amounts and payments.

7. Are you tied into a lengthy contract?

Are there penalty fees for moving to a different supplier? It’s helpful to have the choice and mobility to move suppliers. But many providers will tie you to a contract of a year, or even two years, with an additional three-month penalty to pay.

8. Is there a limit on how much you can bill customers per month?

Do smaller upper limits make it difficult to take the kinds of larger payments that your business deals with? It can be restricting to find there’s an inflexible upper limit on payment amounts or that collections can only be made in fixed amounts, as is the case with many third party providers.

9. Is there a dedicated US support team?

Do you get fed up dealing with email-based support desks, or talking to outsourced customer service teams that can’t answer your bank debit queries? Talking on the phone to a dedicated bank debit expert can be reassuring. Some providers don’t provide phone support, and others have outsourced their support to a third party – so resolutions can take time.

10. Can you charge in both US dollars and euros?

Do you have the flexibility to take payment collections in euros if you’re trading with customers across Europe? Taking payments in euros means using the Single Euro Payment Area (SEPA), a service that some providers don’t offer and others will charge you an additional fee to use.

GoCardless: transparent pricing, flexible options and efficient integration

At GoCardless, there are three key attributes that make our bank debit offering a more customer-driven service.

  • Transparent pricing – We’re completely up front about the best-in-class service you can expect and the lack of any hidden costs in our pricing. So you know exactly what you’ll pay each month, with no extras.

  • Flexible options – We don’t believe in limiting your payment dates, payment amounts or whether you’re trading in the US, the Eurozone, or somewhere else. We give you options, so you can tailor the service to your business needs.

Efficient integration – Our global support team can help you integrate your payment processes directly with your accounting software. Reconciling transactions is a breeze and you’re automatically notified when payments fail – so you’re on top of your numbers.

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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