Four things to know about cancelling Direct Debit payments

The ability to instantly cancel a Direct Debit instruction is an important right for your customers.


To cancel a Direct Debit, contact your bank or building society on the phone, via secure online banking, or visit your local branch. Direct Debit payments can be cancelled at any time but a bank will require at least 1 days’ notice before your next payment date. Both the customer and organisation are recommended to have confirmation of the cancellation in a letter or email.

It’s important that you know how to handle cancellations to make sure Direct Debit continues to be a convenient and effective payment method for you and your customers.

Four things you need to know about cancelling Direct Debit payments

1. Customers can cancel a Direct Debit at any time. Your customer can cancel a Direct Debit mandate at any time either by informing you directly or through their bank. If a customer asks you to cancel a mandate make sure they also notify their bank.

2. You will be notified of a cancellation by ADDACS message. If your customer asks their bank to cancel a mandate the bank will do so immediately and you will be notified of the cancellation by an ADDACs message. For details of ADDACs messages see our guide to messages from the banks.

3. You must apply any cancellations immediately. You must apply any changes immediately or within three working days of receiving an ADDACS message. Make sure you regularly check for reports from the bank.

4. Failure to act can result in an indemnity claim. If you can’t act on the notice of cancellation before the next payment date your customer may be entitled to make an indemnity claim. You should keep records of any ADDACS messages to respond to any future indemnity claims.

GoCardless helps you to keep on top of any cancellations

GoCardless deals with any cancellations for you by:

  • Handling any reports on your behalf. We receive any reports from the bank and use this information to make any updates.

  • Immediately cancelling any instructions on receiving a message from your customer

To find out more about how GoCardless can help you to handle Direct Debit cancellations, book a chat with one of our Direct Debit experts.

‹ View all tips

Latest features

The ultimate payments cheat sheet for SaaS leaders

Optimise your payments strategy to impact key business metrics like Churn Rate and Customer Lifetime Value, with this free cheat sheet from GoCardless and ChartMogul.

How to optimise your payment strategy to prevent involuntary churn

Every month, SaaS businesses are losing 1-4% of their customers, pointlessly. This is involuntary churn and here's what you can do about it.

The little churn book: Advice from SaaS business leaders and investors

How do you measure churn? Why does it matter? And what should you do about it? We've collected advice from some of the world’s most successful and outspoken investors and SaaS C-suite executives.

View all


Reference guides

View all