Use cases for Direct Debit


There are some things that BECS Direct Debit is excellent for, and others for which it is less suitable.

BECS Direct Debit is excellent for…

  • Taking regular payments, such as gym memberships or web hosting subscriptions. 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 who you have an ongoing relationship with, such as wholesalers.

In these cases, using Direct Debit automates the collection process and lets customers simplify payment. For businesses collecting payments, it's also cheaper than card payments.

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.
  • 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.
‹ View table of contents Next page ›

Latest features

5 strategies for reducing delinquent loans with better payments

Delinquent loans are a constant concern for lenders of all sizes. If your level of loan delinquency becomes too high it can have serious negative effects on your business, including increased collection costs and reputational risk. This article explores 5 ways to reduce loan delinquency with better payments.

What I wish I had known: Cash flow edition

We spoke to small business owners about how they took control of cash flow – and the lessons they learned along the way.

How to drive business impact with payments: A guide for financial services providers

The ultimate guide to driving and measuring business with payments, complete with four strategies for building a scalable payments advantage.

View all


Reference guides

View all