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What is the best way to take regular payments?

Chris Hooper
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Last editedJun 20221 min read

A table summarising the differences between credit card (CPA), cash, cheque or Bacs transfer and Direct Debit.

There are a number of different ways to take regular payments. You could use standing orders, regular payments by credit card (known as a ‘continuous payment authority’), cash, cheque or Bacs payment. Or you could use Direct Debit.

While we obviously think Direct Debit is the simplest and most efficient option, which is best for you will depend on your business. To help you decide which is the right option for you, we’ve summarised each in this short table.

Cash/cheque/Bacs CPA Standing Order Direct Debit
What is it? One-off payments by cheque or bank transfer. A pre-authorisation from customers to take any future payments from their credit card. A fixed, regular bank transfer set up and managed by the customer. A pre-authorisation from customers to take any future payments direct from their bank account.
Transaction fees ~£1.50 + 1 hour to pay in 3% + 20p Free Varies (see our pricing)
Failure rates Variable ~5% Variable < 1%
Flexibility Low High Low High
Late payment risk High Mid Mid None
Admin required High Mid High Low
Best for Elderly customers and one-off, high value payments Consumer subscriptions, low value payments Strictly fixed payments to small businesses All consumer subscriptions, regular bills & regular B2B invoicing.

Want all the benefits of Direct Debit but without all the hassle & expense of dealing with banks?

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Take control of payment collection with Direct Debit via GoCardless. Eliminate late payments. Reduce time spent on financial admin. Get paid on time, every time.

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Over 70,000 businesses use GoCardless to get paid on time. Learn more about how you can improve payment processing at your business today.

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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