Do you use direct debit as a payment option?
- Thread starter RPower
- Start date
Takes 14-21 days for GoCardless to authorise a direct debit and set the first payment over. I just can't wait that long when customers are expecting results (work to be done) within a 30 day time frame.
I just use PayPal's subscription feature as they can cancel any time which isn't a problem for me and it's instant. It's also easy to set up.
So I would use direct debit, but not GoCardless.
I just use PayPal's subscription feature as they can cancel any time which isn't a problem for me and it's instant. It's also easy to set up.
So I would use direct debit, but not GoCardless.
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Interesting, once set up the collection is more like 7 days, and i believe that is to comply with ethe Direct Debit Guarantee.
Having used GoCardless since Jan 2013 ( 3 years ) we always start work as soon as the bank details are entered into GC. We never have has a single 'bail out' on an initial payment. (and failure rates on repeat payments are rare)
With Paypal of course, they can reclaim within 30 days, has that ever happened to you. And the Paypal fees are so relatively high. When we started out we started with Paypal subscriptions, but converted to GC and must say it has worked fine.
Having used GoCardless since Jan 2013 ( 3 years ) we always start work as soon as the bank details are entered into GC. We never have has a single 'bail out' on an initial payment. (and failure rates on repeat payments are rare)
With Paypal of course, they can reclaim within 30 days, has that ever happened to you. And the Paypal fees are so relatively high. When we started out we started with Paypal subscriptions, but converted to GC and must say it has worked fine.
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We were a start up at the time so we just couldn't wait so long for the money to arrive in our account and pay the associated freelancers to do the work. Clients were also miffed that they wouldn't see results for so many weeks after starting the direct debit. The fees were what attracted me in the first place. Perhaps it's more suited to an established business, but such a long time to wait is still very unappealing no matter what your cashflow is like.
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Waiting a long time for payment is obviously relative. I'd much rather get paid automatically in 7 days than send a paper invoice to an accounts department and then wait 30 days to find out the invoice has been 'lost'.
But obviously if you really are hand to mouth with cashflow then your solution works for you.
But obviously if you really are hand to mouth with cashflow then your solution works for you.
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We have a gocardless account, however it's not been used...
Why not?
Where ever possible we take payment in advance, or at least a deposit. Larger companies will do so by BACS, occasionally by cheque, whilst smaller customers will do so by credit/debit card. Most of our purchases are 'occasional'
Credit account holders are frequent customers, and have a proven trading history with us, so we're comfortable with invoicing and awaiting for a BACS payment.
Some of our corporate clients, well, they just wont entertain a direct debit payment.
With gocardless, it requires the customer to register for an account too, which may put some off, entering your bank details into a website you've never heard of???
Why not?
Where ever possible we take payment in advance, or at least a deposit. Larger companies will do so by BACS, occasionally by cheque, whilst smaller customers will do so by credit/debit card. Most of our purchases are 'occasional'
Credit account holders are frequent customers, and have a proven trading history with us, so we're comfortable with invoicing and awaiting for a BACS payment.
Some of our corporate clients, well, they just wont entertain a direct debit payment.
With gocardless, it requires the customer to register for an account too, which may put some off, entering your bank details into a website you've never heard of???
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I agree that bigger customers won't entertain it. We have the local council as a customer - no way would their systems cope with a DD.
As our clients become more 'corporate' I see the proportion of income coming in via GC dropping.
Also some 'corporates' people buy with their 'company card' and don't have access the company bank account.
To that end, GC suits customers that are small owner/operator business where your service is a regular 'subscription'.
By the way, about 2 months ago, GC change so that people don't need to create an account with CG to pay. They simply 'sign' the DD mandate with their email & bank details.
As our clients become more 'corporate' I see the proportion of income coming in via GC dropping.
Also some 'corporates' people buy with their 'company card' and don't have access the company bank account.
To that end, GC suits customers that are small owner/operator business where your service is a regular 'subscription'.
By the way, about 2 months ago, GC change so that people don't need to create an account with CG to pay. They simply 'sign' the DD mandate with their email & bank details.
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E
Edith@TerraNetwork
We've started using GoCardLess a few months ago for a small group of clients as it's been a frequently requested feature by our clients. Especially larger companies prefer DD to other payment types such as continuous use authority on debit / credit cards. We haven't been able to roll it out all clients yet as there's no current integration with WHMCS but I'm looking to code this inhouse and then use it standard payment type across all clients. The payment delay is an issue with new clients, but for existing clients on rolling monthly contracts it's perfect. Feel free to PM me if you're looking for more details!
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No idea though. I was told by the account manager there is such a service available, but never got chance to use it for the time being. I believe it won't take more than a couple of days.
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Because it is Direct Debit, not Credit Card or Bank Transfer.
The Direct Debit timing and process is explained clearly here.
https://gocardless.com/direct-debit/timings/
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We use more than one option, Go Cardless, Paypal, BACS and normal bank account. Go Cardless is excellent and very fairly priced. A DD set up takes a little time 4 working days or so, then you get a notice to say its been collected then payment into your account within 2 days from collection.
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