Direct Debit question

Discussion in 'Ecommerce Forum' started by northlondonitsupport, Mar 17, 2016.

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  1. northlondonitsupport

    northlondonitsupport UKBF Contributor Full Member

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    Hope this is the right section of the forums.
    I run a small IT business and some customers have (for example) 3 recurring invoices a month for different services. Some have requested to pay by DD but as yet we have not set it up.
    I have been looking into it today, we can easily use GoCardless through our online accounts system, but I have a question. Sometimes the amounts per month vary and on the sample set- up email it says 'although this request is for £100 per month, we may not always collect this amount - just the maximum we will ask you to authorise to collect if we need to'. Is this normal practice? Otherwise it's just a glorified Standing Order, but changeable from our end, not theirs. So would you email them the current fixed amount per month (one customer's is £304.32 for example), or email them a higher figure (say £350) to cover any changes?
    Also, pros and cons for using DD through GC for a small business?
    Posted: Mar 17, 2016 By: northlondonitsupport Member since: May 25, 2010
  2. WebDesires

    WebDesires UKBF Regular Full Member

    259 44
    Usually anything that is veritable requires manual payment as there is no way I know of to charge different prices every month. However you could charge the maximum every month and credit the customer back but this is something you need to agree with the customer on how that should work.
    Posted: Mar 25, 2016 By: WebDesires Member since: Feb 23, 2016
  3. billmccallum1957

    billmccallum1957 UKBF Ace Free Member

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  4. UKBF Newcomer Free Member

    27 8
    I use GoCardless with variable direct debits. It's simple enough, you login and charge the customer whatever you want and it comes out. They get an email making them aware, but I always make sure they receive the invoice at least a week before I issue the charge (it comes out about 3 days after that and reaches me on day 5).

    With the GoCardless API I'm sure a lot of accounting or invoicing software can even make the charge for you.
    Posted: Mar 28, 2016 By: Member since: Mar 23, 2016
  5. marble_pars

    marble_pars UKBF Regular Free Member

    125 13
    We use GoCardless on reoccurring invoices that can change in value but we use FreeAgent to manage invoices. FreeAgent just sends the invoices automatically with any additional time, GoCardless just processes the direct debit for any value under £5k per month even if it varies from month to month.

    I'm not sure how you would set this up outside FreeAgent but it is possible.
    Posted: Mar 28, 2016 By: marble_pars Member since: Jan 4, 2012
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