Can anyone recommend a Direct Debit co?

[Tony Tomlinson]

Hi,

I'm sure we have all experienced something similar, i'm trying to reduce the time it takes chasing clients for payment. I currently take payment via credit/debit card which is fantastic initially however there is no protection for me as a merchant (unless I obtain customers signature and/or chip and pin)

Usually for any further work customers settle on a 30 day terms however hearing all the excuses to extend those terms is becoming frustrating. I'd like to be able to obtain direct debit payments, seems every man and his dog are offering this, has anybody got some insights on a good company to use which makes things simple and less time consuming?

Any feedback on your experience with DD collection companies would be great.

Thanks in advance.

 

[StevensOnln1]

I've have no problem using Go Cardless to collect direct debits from customers. Easy to setup either one off or recurring payments and it can integrate with various accounting packages etc.

 

[Tony Tomlinson]

I've have no problem using Go Cardless to collect direct debits from customers. Easy to setup either one off or recurring payments and it can integrate with various accounting packages etc.

Thanks Steven i'll check them out.

 

[Raw Rob]

I also use GoCardless and they are great.

 

[Tony Tomlinson]

I also use GoCardless and they are great.

Thanks, Just got off the phone to them, sounds super easy and straight forward. Looking forward to tackling those pesky late payers with the new DD solution.

 

[ldjames]

GoCardless are very good. We've used them before and have done a lot of integration work with their system. It's not necessarily more cost effective for small payments, though, and you'll have to wait 3-4 days to even find out if you'll be paid.

 

[Tony Tomlinson]

Can I ask how it works for those direct debits that don't go through? The chap on the phone wasn't too clear, its great being notified but when are you notified?

 

[Nochexman]

I currently take payment via credit/debit card which is fantastic initially however there is no protection for me as a merchant (unless I obtain customers signature and/or chip and pin)

Hope you don't mind me asking a slightly off topic question, but why don't you have any protection when take payment by card?

 

[Tony Tomlinson]

Hope you don't mind me asking a slightly off topic question, but why don't you have any protection when take payment by card?

Hi Peter,

Im sure you know this working with working in the industry however my experience has shown me that due to the Consumer Credit Act, unless the merchant has the customers signature for goods/service then its almost impossible to defend a chargeback for a MOTO payment.

 

[Alan]

Can I ask how it works for those direct debits that don't go through? The chap on the phone wasn't too clear, its great being notified but when are you notified?

I have been using Gocardless for years ( linked to Kashflow ). It works really well.

The timeline is like this, to comply with direct debit rules clients have to be pre notified before hand - so when you 'charge', 7 days later it hits the bank account of the client, it it fails e.g. no funds you and the client get notified straight away - you can retry through the dashboard and it get rescheduled. Once 'claimed' from the bank it gets transferred to you about 2 days later. Of course DD guarantees can be invoked at anytime if you have claimed incorrectly so you account can in theory be recharged just like credit cards.

DD rarely gives me issues, it only tends to be rare insufficient funds ( bank rejects ) or when a client changes bank ( and this closes the DD )

many systems integrate to Gocardless see http://badlywired.com/2013/06/gocardless-discount-code/

 

[Tony Tomlinson]

I have been using Gocardless for years ( linked to Kashflow ). It works really well.

The timeline is like this, to comply with direct debit rules clients have to be pre notified before hand - so when you 'charge', 7 days later it hits the bank account of the client, it it fails e.g. no funds you and the client get notified straight away - you can retry through the dashboard and it get rescheduled. Once 'claimed' from the bank it gets transferred to you about 2 days later. Of course DD guarantees can be invoked at anytime if you have claimed incorrectly so you account can in theory be recharged just like credit cards.

DD rarely gives me issues, it only tends to be rare insufficient funds ( bank rejects ) or when a client changes bank ( and this closes the DD )

many systems integrate to Gocardless see http://badlywired.com/2013/06/gocardless-discount-code/

That sounds great, thank you for the breakdown, set up an account with GC now just awaiting bank verification, put off card transactions now after one customer clearly knew what they were doing and successfully submitted a chargeback for 3 months worth of invoices, we just signed up with docusign also to ensure all terms are signed, certainly once bitten twice shy.

 

[RobertN]

Using subscription script could help you out. There are lots of recurring subscription scripts out there just in case.

 

[Nochexman]

Im sure you know this working with working in the industry however my experience has shown me that due to the Consumer Credit Act, unless the merchant has the customers signature for goods/service then its almost impossible to defend a chargeback for a MOTO payment.

Sorry Tony, I hadn't appreciated you were talking MOTO - thought this was online.

 

[effie9]

GoCardless