Do I need my customers to sign something for direct debits?

[Fearghal]

I am going to start accepting direct debits as a method of payment.

Do I need written consent from customers to do this, like a signed form or something?

Thanks!

 

[Scalloway]

It is an absolute fundamental of the Direct Debit system that customers sign to agree to it! They are giving you permission to plunder their bank account for an amount decided by you.

Have you approached you bank about setting up a Direct Debit scheme?

 

[StevensOnln1]

Go Cardless lets you provide a link to the customer where they setup the direct debit online. I've setup plenty of direct debits to suppliers by phone/online without ever needing to sign anything.

 

[Alan]

If you are going to start accepting Direct Debits, there are a whole load of hoops you have to go through, you can't just 'start'. So the bank or provider that you are setting up with will advise you on what you need to do.

However, as mentioned, GoCardless (see the link in my sig) , have a payment system where they collect via DB and give you the money, some time later. It is a Direct Debit as far as the client is concerned, but its not 'true' direct debit processing in its natural form.

 

[TotallySport]

fast pay is another method of taking direct debits, without the hassle.

http://www.fastpayltd.co.uk

 

[Fearghal]

Thanks for the replies!

I have looked at GoCardless and it looks quite good. If my customer signs something would that enable me to enter their details on GoCardless to start the direct debit or would it have to be them?

My clients aren't exactly the most computer literate people.

 

[businessfunding]

For your own security I would advise that you get a form signed, though it is not a legal requirement

You are legally required to inform your customer of what they are signing and of their rights under the guarantee system. Unless you do this on a recorded phone conversation you will struggle with proof.

 

[MyAccountantOnline]

I am going to start accepting direct debits as a method of payment.

Do I need written consent from customers to do this, like a signed form or something?

Thanks!

Are you sure you want to do direct debit rather than standing order or something like regular payments with PayPal?