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Use cases for Direct Debit

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The GoCardless content team comprises a group of subject-matter experts in multiple fields from across GoCardless. The authors and reviewers work in the sales, marketing, legal, and finance departments. All have in-depth knowledge and experience in various aspects of payment scheme technology and the operating rules applicable to each. The team holds expertise in the well-established payment schemes such as UK Direct Debit, the European SEPA scheme, and the US ACH scheme, as well as in schemes operating in Scandinavia, Australia, and New Zealand. See full bio

Last editedDec 20231 min read

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.

How to collect Direct Debit payments with GoCardless

1.

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

2.

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

3.

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

Collect by Direct Debit easily — link your Xero account to GoCardless and set up Direct Debit payments!Learn more about Direct Debit collections

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.