Our terms of service

GoCardless Payments 

Service Terms: Outbound Payments Feature

1. THESE SERVICE TERMS AND YOUR AGREEMENT WITH GOCARDLESS

How do these Service Terms fit into the Agreement between you and GoCardless?

1.1 The General Terms explain what makes up the Agreement between you and GoCardless and state that when you use any Service provided by GoCardless, you are agreeing to the Service Terms which apply to that Service.  

1.2 These Service Terms govern your use of the Outbound Payments Feature (which is a Service for the purposes of the Agreement).  A description of the Service is set out in the Product Description Document (or, for GoCardless Embed customers, the Product Description Document for Embed).

1.3 The definitions and interpretation provisions contained in the Definitions Document (or, for GoCardless Embed customers, the Definitions Document - Embed) apply to these Service Terms.  

1.4 These Service Terms are incorporated by reference into the Agreement and apply in addition to the General Terms and any other Service Terms which apply to the Services you are using under the Agreement.  By setting up a GoCardless Account, accepting the Agreement and using the Service, you agree to be bound by these Service Terms, and consent to GoCardless providing the Service. 

2. PAYMENT SCHEMES AND GOCARDLESS SERVICE PROVIDERS 

Which Payment Schemes does GoCardless support for the Service? 

2.1 The Payment Schemes supporting the Service are as set out in the Product Description Document (or, for GoCardless Embed customers, the Product Description Document for Embed).  GoCardless may add and/or remove Payment Schemes for the Service at any time and without notice to you. 

Which GoCardless entity will be providing the Service to you?

2.2 The GoCardless entity providing the Service to you will depend on the jurisdiction you are established in and will be as set out in the Agreement.  A list setting out which GoCardless entity provides the Service in each available jurisdiction can be found in the Product Description Document (or, for GoCardless Embed customers, the Product Description Document for Embed).    

Can you use the Service to send money to a Payee who lives in a jurisdiction other than your jurisdiction or has an account in a currency other than the currency of your Payment Account?

2.3 No.  The Service can only be used to make a payment to a Payee who lives in the same jurisdiction as you and who has an account in the same currency as the Payment Account.  This means the Service can not be used in conjunction with the FX Feature. 

Are there any particular restrictions or requirements you should be aware of when using the Service?

2.4 GoCardless may apply limits to your use of a Payment Account and payments made from your Payment Account. Limits may include: (a) the amount of any credit transfer of Incoming Funds from your Nominated Account into a Payment Account; (b) the amount of any Outbound Payment Instruction made from your Payment Account; (c) the aggregate amount of Outbound Payment Instructions  which can be scheduled in any Business Day; and (d) the aggregate number of Outbound Payment Instructions which can be scheduled in any period.  GoCardless will give you reasonable notice of these limits and any changes to them, as long as the notification will not compromise the security of or allow potentially fraudulent use of the Service.  GoCardless will not give you notice if it is prevented from doing so due to Applicable Law.

3. THE SERVICE

What will GoCardless provide to you under these Service Terms?

3.1 The Service comprises: (a) the provision and operation of a Payment Account by GoCardless which you can use to send and receive payments; and (b) the receipt of payments into the Payment Account and the execution of payments out of the Payment Account. 

3.2 Subject to your compliance with the Agreement and any rights GoCardless may have under the Agreement, GoCardless will: (a) set up a Payment Account; (b) operate each Payment Account; (c) set up Outbound Payment Transactions based on information provided to GoCardless by you in an Outbound Payment Instruction; (d) execute Outbound Payment Transactions in accordance with your Outbound Payment Instructions; (e) execute Automatic Return of Funds Transactions; (f) execute transactions in accordance with the time periods set out in the Payment Scheme Timings Page to the extent such actions are within GoCardless’ control; (g) execute Outbound Payment Transactions and Automatic Return of Funds Transactions less any Authorised Deductions, Fees (if applicable) and any other amounts due and payable by you to GoCardless; (h) enable Incoming Funds to be received into a Payment Account and made available to you, subject to any Holding Period. 

When will GoCardless start providing the Service to you?

3.3 Unless otherwise agreed by GoCardless, GoCardless will not provide you with a Payment Account, operate a Payment Account for you, allow you to receive funds into a Payment Account or execute any Outbound Payment Transactions for you until you have successfully completed Verification in accordance with the General Terms.

3.4 Once you have been accepted to use the Service, you will be able to access and manage your use of the Service through the Dashboard and/or the API.  

4. PAYMENT ACCOUNT

How do you set up a Payment Account?

4.1 In order for GoCardless to provide you with the Service, GoCardless will need to set up a Payment Account for you. GoCardless will notify you once the set-up of your Payment Account has been completed.  

Once a Payment Account has been set up for you, how do you start using the Payment Account to make Outbound Payments?

4.2 Once a Payment Account has been set up for you, you can start funding the Payment Account and creating Outbound Payment Instructions through the API or the Dashboard.  

How do you fund a Payment Account?

4.3 Your Payment Account can be funded in the following ways: (a) you can instruct GoCardless to pay the Collected Amount into your Payment Account (rather than to your Nominated Account); (b) by making a credit transfer of funds from your Nominated Account into your Payment Account; (c) by making a credit transfer of funds from a bank account in your name which is not your Nominated Account; or (d) by receiving a credit transfer of funds from a third party bank account.  Your Payment Account details will be provided to you when your Payment Account is opened, will be available on every Payment Account statement you download and may also be accessed through the Dashboard.   

 4.4 Where you are funding a Payment Account with the Collected Amount you acknowledge and agree that the whole Collected Amount will be paid to your Payment Account (rather than to your Nominated Account) and you cannot split the payment of the Collected Amount between a Payment Account and the Nominated Account.  However, you can elect for the Collected Amount to be paid to your Payment Account and create an Outbound Payment Instruction for all or some of the Outbound Payment Funds to be paid to the Nominated Account (as a Payee).  If you want the Collected Amount to be paid to your Payment Account you must contact GoCardless.  You can, at any time, amend the instruction to pay the Collected Amount to your Nominated Account instead of to your Payment Account by contacting GoCardless.

When will funds be credited to your Payment Account?

4.5 The Collected Amount will be paid to your Payment Account in accordance with the Payment Scheme Timings applicable to the relevant collection Service (which may be subject to any features you use, such as the Scheduled Payouts Feature).  For these purposes, the reference to ‘Nominated Account’ should be construed as Payment Account where you have instructed GoCardless to pay the Collected Amount into your Payment Account.  In using the Service you warrant and represent that you are the intended recipient of the Collected Amount and you have a contractual right to receive the Collected Amount, and in electing to have the Collected Amount paid to your Payment Account GoCardless is fulfilling its obligation to pay the Collected Amount to you (as is the case where the Collected Amount is paid to your Nominated Account).

4.6 Incoming Funds will be paid to your Payment Account in accordance with the timings dictated by the bank who operates your Nominated Account, any other bank account in your name and/or a third party bank account (as applicable).  Incoming Funds will be available for you to use in the Payment Account when GoCardless receives the amount of the Incoming Funds in cleared funds.

4.7 When the Collected Amount and/or Incoming Funds are received into your Payment Account and become Outbound Payment Funds those funds will be immediately available to you.  The Outbound Payment Funds will be safeguarded in accordance with Applicable Law which requires GoCardless to segregate your money from its own whilst conducting payment services activities.

How do you see the balance of your Payment Account?

4.8 You can view: (a) the balance of Outbound Payment Funds held in the Payment Account; (b) Outbound Payment Funds which are subject to an Outbound Payment Instruction (referred to as ‘Scheduled Payments’ in the Dashboard); and (c) Outbound Payment Funds held in the Payment Account which are not subject to an Outbound Payment Instruction (referred to as ‘Available Funds’ in the Dashboard), through the Dashboard and/or the API.  

When are Fees and Authorised Deductions payable with respect to your Payment Account?

4.9 GoCardless will, where applicable: (a) at the point in time when the Fees become due and payable by you to GoCardless (as stipulated on the Payment Scheme Timings Page), transfer the Fees to GoCardless; (b) at the point in time when any Authorised Deductions and any other amounts which are due and payable by you to GoCardless become due and payable (as stipulated on the Payment Scheme Timings Page), transfer the Authorised Deductions and other amounts to GoCardless. 

4.10 You are not due and will not be entitled to receive any interest on funds that are held in your Payment Account. 

4.11 Your use of the Service is distinct from your use of other Services, including the Bank Debit Feature and/or the Instant Bank Pay Feature, and you will be charged Fees for each Service you use.

5. MAKING OUTBOUND PAYMENTS FROM A PAYMENT ACCOUNT

How do you make Outbound Payments from your Payment Account?

5.1 Once there is a positive balance in your Payment Account you can apply Outbound Payment Instructions to the Outbound Payment Funds through the API and/or the Dashboard.  An Outbound Payment Instruction can be for an Immediate Outbound Payment or for a Scheduled Outbound Payment.  

5.2 If you do not apply an Outbound Payment Instruction to any or all of the Outbound Payment Funds then GoCardless will automatically execute an Automatic Return of Funds Transaction every quarter, on the first Tuesday of January, April, July and October.

5.3 You can create Outbound Payment Instructions through the API and/or the Dashboard.  You will need to configure your application processing interface which connects with the API in line with the Documentation to enable you to create Outbound Payment Instructions through the API.

5.4 Outbound Payment Funds held in a Payment Account can only be held and used in relation to payment transactions so must either be accompanied by an Outbound Payment Instruction or will be subject to an Automatic Return of Funds Instruction.

5.5 It is your responsibility to ensure the Payee information provided to GoCardless in an Outbound Payment Instruction is correct.  GoCardless will execute an Outbound Payment Transaction in accordance with the Outbound Payment Instruction and it is your sole responsibility to ensure the information provided is correct.  GoCardless will not be liable to you if the Outbound Payment Instruction is incorrect.  If you want to change an Outbound Payment Instruction you must notify GoCardless no later than any cut-off time for the execution of the associated Outbound Payment Transaction as set out in the Payment Scheme Timings.  

5.6 You acknowledge and agree that if further information or investigation is required in relation to any Outbound Payment Instruction and/or your Payment Account, you will promptly upon GoCardless’ written request provide all relevant information reasonably requested and/or cooperate with, and follow GoCardless’ reasonable instructions in respect of, any such investigation (as applicable).

How do you authorise Outbound Payment Instructions?

5.7 You give your consent to each Outbound Payment Transaction by creating and confirming the Outbound Payment Transaction through the API and/or the Dashboard.  If you are creating an Outbound Payment Instruction to pay a new Payee you will be required to authenticate the Outbound Payment Transaction securely.  If you do not successfully authenticate, you will not be able to create the Outbound Payment Instruction to the new Payee and GoCardless will not execute the Outbound Payment Transaction.  Further information on authentication methods will be set out in the Documentation.

5.8 GoCardless will perform COP Checks prior to executing Outbound Payment Transactions and adding Trusted Beneficiaries, as further explained in section 6 below.

Can you have a negative balance on your Payment Account?

5.9 No.  You must maintain sufficient funds in a Payment Account at all times to ensure it does not fall into a negative balance.  If you provide any Outbound Payment Instruction which is in excess of the balance of available Outbound Payment Funds in your Payment Account, the Outbound Payment Instruction will be declined and GoCardless will not execute the Outbound Payment Transaction.

 What happens if you do not create an Outbound Payment Instruction to Outbound Payment Funds?

5.10 If you do not create an Outbound Payment Instruction to any or all of the Outbound Payment Funds you are deemed to have created and confirmed an Automatic Return of Funds Instruction and consented to the consequent Automatic Return of Funds Transaction.  You will be charged a Fee for any Automatic Return of Funds Transaction.

When will GoCardless execute Outbound Payment Transactions and Automatic Return of Funds Transactions?

5.11 GoCardless will execute Outbound Payment Transactions in accordance with the Payment Scheme Timings.  However any Outbound Payment Transaction can be delayed by up to four (4) Business Days if GoCardless suspects the Outbound Payment Transaction is fraudulent or in breach of any Applicable Law.  GoCardless will notify you if the Outbound Payment Transaction is delayed, unless it is prevented from doing so by Applicable Law.

5.12 If you consent to an Immediate Outbound Payment the Outbound Payment Instruction is irrevocable and cannot be cancelled once you have given your consent.  If you consent to a Scheduled Outbound Payment which is to be executed at a future date you can revoke your consent to the Outbound Payment Transaction up to 23:59 GMT on the Business Day prior to the scheduled execution date by sending a revocation message through the API or the Dashboard.  If you revoke your consent to a Scheduled Outbound Payment, the associated Outbound Payment Funds may become subject to an Automatic Return of Funds Transaction if you do not apply a new Outbound Payment Instruction to those funds.

5.13 GoCardless may put a hold on any Outbound Payment Transaction if it is permitted to do so under Applicable Law and this may affect execution timings.  You can check the status of all Outbound Payment Transactions at any time through the Dashboard. 

 Does GoCardless monitor your use of the Service? 

5.14 Yes.  GoCardless monitors the status of your Payment Account and your use of the Service.  GoCardless may suspend payments into or out of your Payment Account if, in GoCardless’ reasonable opinion, it thinks such suspension or amendment is required, for example, as a result of pending disputes, deterioration of your financial situation or credit standing, other suspected fraudulent or otherwise suspicious activity related to your Payment Account and/or use of the Service.  GoCardless will notify you of any suspension or amendment unless to do so would be unlawful or GoCardless has grounds to suspect fraudulent or any other form of criminal use of your Payment Account and/or the Service.

Are there any other provisions relating to your use of the Service you should be aware of?

5.15 You agree not to use the Service for any unlawful activity and GoCardless reserves the right to investigate any suspicious activity or in response to any complaints or reported violations.  When investigating any such activity, GoCardless reserves the right to institute a hold on your Payment Account, any Outbound Payment Instruction, any Outbound Payment Transaction or your Outbound Payment Funds, to report suspected unlawful activity to any appropriate Regulatory Authority or person and to provide such authority or person any relevant information, including personal data.  

5.16 You must act upon and take any necessary actions relating to all rejects, returns and Refunds in relation to all payments processed by GoCardless using the Service.  If funds deriving from rejects or returns are received into your Payment Account, those funds will form part of the Payment Account balance and will be the subject of an Automatic Return of Funds Transaction, unless an Outbound Payment Instruction is attached to those funds by you.  If a third party attempts to pay a Refund to you into your Payment Account, the inbound payment may be rejected on the basis of unknown source of funds. 

5.17 You must, without delay, provide information relating to processed or pending Outbound Payment Instructions or Outbound Payment Transactions when requested to do so by GoCardless.

5.18 You must comply with any guidance issued by GoCardless to you from time to time in relation to risk mitigation whilst processing payments.  

6. UNAUTHORISED OUTBOUND PAYMENT TRANSACTIONS AND APP FRAUD

What happens if you think there has been an Unauthorised Outbound Payment Transaction on your Payment Account?

6.1 You must notify GoCardless without undue delay upon becoming aware of any Unauthorised Outbound Payment Transaction and in any event within thirteen (13) months of the execution of the relevant Unauthorised Outbound Payment Transaction by notifying GoCardless by email to help@gocardless.com.

6.2 Provided you have notified GoCardless in accordance with section 6.1 of these Service Terms and subject to section 6.3 of these Service Terms and any relevant provisions of the General Terms, GoCardless will repay the amount of any sums paid out pursuant to an Unauthorised Outbound Payment Transaction and any related interest and charges but will have no further liability to you.

6.3 You will be liable to GoCardless for any and all Losses suffered or incurred by GoCardless as a result of any Unauthorised Outbound Payment Transaction in circumstances where: (a) GoCardless reasonably suspects there has been fraud by you; or (b) you have, with intent or negligence, failed to comply with any obligation under the Agreement, including the provisions of the General Terms relating to the security of the Account Details which has, in turn, caused the Unauthorised Outbound Payment Transaction to occur. 

6.4 You will have no liability to GoCardless in relation to any Unauthorised Outbound Payment Transaction where: (a) the execution of an Unauthorised Outbound Payment Transaction occurs after you have notified GoCardless that your Account Details have been lost, stolen or misappropriated; or (b) GoCardless has failed to provide you with the means to notify it of the loss, theft or misappropriation of the Account Details (except where that failure arises wholly or mainly due to factors outside GoCardless' reasonable control or its compliance with Applicable Law).

What happens if you are using the Service and you think there has been APP Fraud on your Payment Account?

6.5 The UK operates a mandatory APP Fraud reimbursement scheme which covers certain cases involving the electronic transfer of funds.  If you consider you have made an Outbound Payment Transaction using the Service as a result of APP Fraud you may be able to claim a refund.  Where this applies you must contact GoCardless immediately by email to help@gocardless.com to assess if a claim can be made under the Payment Scheme Rules and if so what steps need to be taken.

6.6 If you receive funds electronically into your Payment Account you may become the subject of a ‘Scam Reimbursement’ claim.  If this happens GoCardless will inform you of the details of the claim made and the next steps that can be taken in accordance with the Payment Scheme Rules.  GoCardless will inform you if the claim is upheld.  Where a claim is upheld you become liable to GoCardless for the APP Fraud Reimbursement Contribution  The amount of the APP Fraud Reimbursement Contribution will become an Authorised Deduction and is due and payable by you to GoCardless immediately.

Are there any steps taken to reduce the risk of APP Fraud on your Payment Account?

6.7 Yes.  To minimise the risk of fraud and errors GoCardless will perform a COP Check each time you create an initial Outbound Payment Instruction to pay a Payee.  

6.8 The COP Check will return one of four outcomes: (a) full match - the result returned from the Payee’s bank shows an exact match between the Payee name and the Payee bank details you have provided; (b) partial match - the result returned from the Payee’s bank shows the Payee name is similar to the Payee bank details you have provided; (c) no match - the result returned from the Payee’s bank shows the Payee name and the Payee bank details do not match; or (d) unable to match - no result is returned from the Payee’s bank due to technical error.  

6.9 Irrespective of which outcome is returned, you will be able to choose whether to create an Outbound Payment Instruction to pay that Payee, and GoCardless will deem your instruction to proceed as your consent to execute the Outbound Payment Transaction on the basis of the details provided.  GoCardless will execute the Outbound Payment Transaction in accordance with the details provided and will not be liable to you if the Outbound Payment Transaction is not paid to the intended recipient.  If you do create an Outbound Payment Instruction where the COP Check does not return an exact match you accept that your money could go to the wrong account and you may not get it back. 

  When will GoCardless identify a Payee as being a Trusted Beneficiary?

6.10 If a COP Check returns a full match or partial match result and you consent to an initial Outbound Payment Transaction being executed to pay that Payee, GoCardless will automatically allocate that Payee as a Trusted Beneficiary.  This means no further COP Checks will be performed against the Payee bank details and you can make future payments to that Payee without needing to go through additional authentication processes.  If you don’t make a payment to that Payee for a period of thirteen (13) months, GoCardless will remove the Payee as a Trusted Beneficiary and if you wanted to make a payment to that Payee you need to set up a new Outbound Payment Instruction to pay them and a COP Check and additional authentication steps would be applied.

6.11 If a COP Check returns a no match or unable to match result GoCardless will not allocate that Payee as a Trusted Beneficiary, even if you consent to the payment transaction on the basis of the COP Check result.  

7. INCORRECTLY EXECUTED PAYMENT ORDERS

What happens if you think there has been an Incorrectly Executed Outbound Payment Transaction made from your Payment Account?

7.1 You must notify GoCardless as soon as reasonably practicable upon becoming aware of any Incorrectly Executed Outbound Payment Transaction and in any event within thirteen (13) months of the execution of the relevant Incorrectly Executed Outbound Payment Transaction by notifying GoCardless by email to help@gocardless.com.

7.2 If you inform GoCardless there has been an Incorrectly Executed Outbound Payment Transaction, GoCardless will make reasonable efforts to trace the relevant funds and notify you of the outcome.

7.3 GoCardless will be liable to you in respect of any Incorrectly Executed Outbound Payment Transaction  which results from GoCardless' failure to comply with its obligations under the Agreement in which case GoCardless will without undue delay: (a) refund the amount of the Incorrectly Executed Outbound Payment Transaction and restore the Payment Account to the state it would have been in had the Incorrectly Executed Outbound Payment Transaction not taken place; or (b) if the Incorrectly Executed Outbound Payment Transaction has not been executed at all, correctly execute the Outbound Payment Transaction or Automatic Return of Funds Transaction (as applicable).

7.4 In each case above, GoCardless will not be liable for the correct execution of an Outbound Payment Transaction or Automatic Return of Funds Transaction if GoCardless can prove that the payment service provider of the intended Beneficiary has received the funds in accordance with the Outbound Payment Transaction or Automatic Return of Funds Transaction.

7.5 GoCardless will not be liable for any Incorrectly Executed Outbound Payment Transaction if the failure giving rise to the Incorrectly Executed Outbound Payment Transaction was due to abnormal and unforeseeable circumstances beyond GoCardless’ control, the consequences of which would have been unavoidable despite all efforts to the contrary, or if the Incorrectly Executed Outbound Payment Transaction arose because of GoCardless having to comply with Applicable Law. 

7.6 You will be liable to GoCardless for any and all Losses suffered or incurred by GoCardless as a result of any Incorrectly Executed Outbound Payment Transaction where you have, with intent or negligence, failed to comply with any obligation under the Agreement which has, in turn, caused the Incorrectly Executed Outbound Payment Transaction to occur.  

7.7 You are solely responsible for reconciling actions on your Payment Account with your accounts and actual bank transactions.

What happens if you accidentally receive funds into your Payment Account which you do not recognise or are not entitled (i.e. they have been paid to you by mistake)? 

7.8 If you receive funds into your Payment Account which you do not recognise or you think have been paid into your Payment Account in error you should tell us immediately.  You acknowledge and agree that GoCardless may be entitled to deduct the amount of any such Incoming Funds from the balance of your Payment Account and return them to the sender without notice to you.

8. TERMINATION OF THE SERVICE

What additional consequences of termination should you be aware of which are specific to the Service?

8.1 If the Agreement ends for any reason, in addition to the consequences set out in the General Terms: (a) if GoCardless is unable or unwilling to make payments to you as a result of concerns relating to fraud, an Insolvency Event, anti-money laundering or other regulatory or legal requirements, GoCardless may reverse or cancel any Outbound Payment Transaction and suspend your ability to access or use your Payment Account or the Service; (b) GoCardless may suspend the ability to receive funds into a Payment Account if in GoCardless’ reasonable opinion suspension is required; (c) you will not be able to submit any further Outbound Payment Instructions and, at GoCardless’ sole discretion, may be unable to access the Service and your GoCardless Account.

8.2 If you terminate the Agreement or your use of the Service you must apply an Outbound Payment Instruction to any funds held in your Payment Account.  If you don’t do this an Automatic Return of Funds Transaction will be executed by GoCardless with respect to any funds in your Payment Account.  As soon as your Payment Account has a zero balance GoCardless will close your Payment Account.  

8.3 If you terminate the Agreement or your use of the Service you will no longer be able to receive funds into your Payment Account and any Incoming Funds will be returned to the sender.  If you also use a Service to collect funds from your Customers and the collected funds are paid to your Payment Account you will need to notify GoCardless of the details of the Nominated Account where the collected funds should be paid to (instead of to your Payment Account). 

9. INDEMNITY

What additional indemnity do you give to GoCardless specifically with respect to the Service?

9.1 In addition to your indemnities to GoCardless under the General Terms, you will, with respect to the Service indemnify GoCardless and its Affiliates and keep GoCardless and its Affiliates indemnified on demand against any Losses suffered or incurred by GoCardless and its Affiliates: (a) relating to APP Fraud; (b) using the Service in a way that is not permitted by GoCardless or which requires a licence which you don’t have; (c) any misuse of your Payment Account.  For the avoidance of doubt, GoCardless may not claim under this indemnity where any Losses incurred arise directly from GoCardless' negligence, default, or mistake.  GoCardless Affiliates shall have the right to enforce this indemnity directly against you.

10. DISPUTES AND COMPLAINTS

What should you do if you have any questions, concerns or complaints relating specifically to the Service?

10.1 A good place to start is the Customer Hub which has lots of useful information about GoCardless and the Service and where you may quickly find the answer to your question.

10.2 If you have explored the Customer Hub and you still have any question, concern, issue or complaint about the Service you must contact GoCardless as set out in the General Terms.