How to access Direct Debit: a 60 second guide
Last editedApr 20235 min read
There are three options you can use to access the Direct Debit system. This guide will walk you through each to help you decide which is best option for you.
Accessing Direct Debit
For SMEs that want to collect Direct Debit payments online and who value fast and easy set-up, a bank payment specialist is the quickest and easiest option. For businesses that also need to offer their customers the options of paper and telephone authorisation, then a Direct Debit Bureau would probably be the most suitable provider. For larger enterprise businesses that require more control and have more resources to devote to payment collection, the scheme can be accessed directly via a bank. Let’s look at each option in more detail:
1. Direct access via a bank
You can access the scheme directly through your bank. This is best for big businesses signing up customers with paper Direct Debit.
If you are able to meet certain criteria they will issue you with a “Service User Number” ("SUN"), which means you can submit payments into the system yourself.
2. A Direct Debit Bureau
A Direct Debit bureau is a third party which handles Direct Debit payments on your behalf, either using your own SUN or using the Bureau’s SUN.
A bureau is great if you need the full suite of phone, paper and paperless Direct Debit and want to manage everything yourself from scratch; if not, take a look at GoCardless.
They’re best for smaller businesses that want to sign up customers with paper mandate forms.
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 date. Simple.
3. A bank payment specialist
With a bank payment specialist such as GoCardless, you can get instant access to a fully automated Direct Debit payments service.
This is your best option for online Direct Debit if you want to get started straight away or if you want an efficient and cost-effective payment solution.
Signing up with GoCardless is free, and we manage the whole payment process for you.
For SMEs that do not have the time or resources to invest in direct access and that are simply looking for a secure, reliable and cost-effective way to always get paid on time, then GoCardless is a great option.
Watch the 60-second Direct Debit explainer video below that highlights the business benefits of Direct Debit and how easy it is to get started with GoCardless.
Want all the benefits of Direct Debit but without all the hassle & expense of dealing with banks?
GoCardless does all the heavy lifting for you so you can collect payments on time every time with just a few clicks!
Options for access to the Direct Debit scheme
We will now look at the three options in more detail, starting with the option that will be suitable for most SMEs and ending with the solution that best fits larger enterprise-style businesses.
Option 1: GoCardless
GoCardless is the UK’s leading Direct Debit provider. It’s a completely automated Direct Debit payments provider which lets you take, track and automatically reconcile your payments online through our simple dashboard or REST API. You can quickly and easily set up Direct Debit payments online with GoCardless.
Why use GoCardless?
GoCardless automates and simplifies the whole payment process for you. This has four main benefits:
Eliminates late payments. Direct Debit is an automated ‘pull’ payment - once authorised by your customer, you will receive payments on the due dates you set without your customer needing to take any additional action.
Reduced admin. You can collect recurring and one-off payments automatically or at the click of a button. We manage everything else for you. You can also automate bank reconciliation, and with late payments eliminated, there’s no need to spend time chasing.
Powerful tools that suit you. With GoCardless, it is incredibly easy to set up, collect and manage Direct Debit payments with our simple online tool or REST API. We also offer integrations with your accounts provider.
Simple, low pricing. Our size enables us to offer you highly competitive prices. For full details, see here.
There are no requirements for using GoCardless. Any business or charity - from sole traders to national finance companies – can sign up for free with us online and start collecting payments immediately.
Merchants' feedback often highlights how much easier and faster GoCardless makes the payment process. Businesses like Bike Club have been able to save time and money on their payment process every month since switching to Direct Debit payments with GoCardless.
“GoCardless saves us about three FTE per year, which equates to around £100,000 worth of overhead. It's been really, really valuable for our business – if we don't have GoCardless, we barely have a business.” - James Symes, CEO, Bike Club
Getting paid shouldn't cost you time, money and stress!
That's why GoCardless automates payment collection to make it simple, affordable & hassle-free.
Option 2: A Direct Debit Bureau
A Direct Debit bureau is a third party which handles Direct Debit payments on your behalf. For examples, see Eazy Collect, FastPay, and SmartDebit.
There are two ways to collect Direct Debit payments using a bureau:
Using your own SUN. A bureau can set one up for you. Choose this option if you would like only your business name to show on your customer's bank statements. Expect to pay around £1000 upfront. This is called “facilities management.”
Using the Bureau’s SUN. The bureau will submit and manage payments on your behalf. Choose this option if you don’t mind the bureau's name appearing on your customers’ bank statements and would like to get started more quickly. Expect to pay around £500 upfront, and be aware that up to 30% of your funds may be withheld each month to cover their risk.
Our guide to SUNs should help you to decide which of these two options you prefer.
Why use a bureau?
Compared to direct access through a bank, bureaus are cheap and quick to sign up with. They are great if you want to sign up customers with paper forms. However, while some bureaus do offer paperless Direct Debit, this may be more expensive or at a lower standard.
What do I need to do?
Direct Debit bureaus typically don't publish their pricing, but typically you will be required to:
Pay a £500 - £1000 setup fee
Pay 40p per payment and £1.40 to set up each new customer
Manually reconcile reports back into your systems
Invest 4-8 weeks in setting up
Where do I start?
The first step - and possibly the biggest challenge - is to find the right bureau for you. Ask each bureau these 8 Questions to help you decide if it's right for you.
Option 3: A bank
Large businesses with plentiful administrative, financial and legal resources may wish to manage Direct Debit collection in-house. To do this your bank will need to grant you your own SUN.
Why go through a bank?
There are two advantages:
Lowest cost per payment. You will pay a small fee per payment which should decrease with volume.
Full control of your payments. You will decide when and how you submit payment requests, and only your company name will appear on your customer’s bank statement.
What do I need to do?
The requirements for accessing the scheme differ slightly by the bank, but in general, you will need to:
Get your own SUN (Read more about the pros and cons of getting your own SUN here).
Put down a £100k bond with the bank to cover their risk
Invest around £20k in software, and staff training
Assign 1-3 staff to manage the system
Invest 3-6 months in setting up
For further details on what this will involve, see our guide to becoming a Direct Debit Originator.
Where do I start?
The first step is to get a sponsor bank and a Service User Number. For details on getting a SUN please see our guide to Service User Numbers.
Summary: Accessing Direct Debit
Direct Debit via GoCardless offers SMEs multiple benefits compared to other payment methods, including:
Lower transaction fees.
More security with better customer protections
Automation that reduces the amount of manual financial admin.
Eliminates late payments as the collection is automated for the due dates set by you.
GoCardless is free to set up with no contracts or upfront commitment required.
Easy to get started, and payments can be set up in just a few clicks.
GoCardless takes care of all the legal, administrative and legal requirements on your behalf.
“Our card payments provider charges an average of 3.3% per transaction – GoCardless costs less than half that. In just a couple of months, Success+ recovered £1,400 in failed payments and saved about 10 hours a week of collections work – and all without us having to do a single thing.” - Andrew Charalambous - Director, Ignite
GoCardless makes it easy to accept Direct Debit. Automate payment collection. Reduce manual admin. Get paid on time, every time.
What our customers say
Dayle, an accountant and GoCardless customer, recommends GoCardless Direct Debit to all his clients:
What do I need?
There are no requirements for using GoCardless. Any business or charity - from sole traders to national finance companies – can sign up for free with and start collecting payments immediately.
