Direct debit

Direct Debit is a UK bank payment where a customer authorises you to collect money from their bank account. You collect on agreed dates, and the amount can be fixed or variable, provided you tell the customer in advance.

To use it, you need a customer mandate (paper or online) and a bank or payment provider that submits the collections through the scheme. It suits subscriptions, memberships, instalments and regular invoices; it’s not for instant point‑of‑sale payments. Customers can cancel a mandate with their bank, so keep clear records and stop collecting when a mandate ends.

How Direct Debit differs from other payment methods:

• Standing order: the customer pushes a fixed amount; with Direct Debit you pull funds and can change the amount with notice.
• Card on file: uses card networks and can fail when cards expire; Direct Debit uses bank accounts and often suits larger or recurring amounts.
• Bank transfer: the customer sends a one‑off payment; Direct Debit automates repeat billing and collections.