How can i collect direct debits online?

[martin33]

Hi,

I'm planning a new business venture, which will require members to sign up to a subsription of £x amount per month via the website. It'll be direct debit where this fixed amout will be automatically charged at a set day per month.

Does anybody know how i can do this? In my current business, i have a protx account, but that doesn't have the facilities to do direct debit.

Many thanks

Martin

 

[Peter Bowen]

Protx has a facility to do a recurring payment on certain types of cards (most credit cards, some debit cards).

You need a continuous merchant authority with your bank to do this. Protx can work with some banks like this but not all. They haven't updated their web page showing which banks they work with so you'll have to give them a call to see which ones they can work with. I know that HSBC works even though it's not on their list of supported merchants.

The first time you take payment from someone you store some information that Protx sends you and use that information every month when you request payment again.

There are a couple of other ways of doing this too. WorldPay and 2Co also offer recurring payments.

Give me a shout to [email protected] if you need want to ask specific questions. We've run a subscription website since 2004 and bumped into all sorts of interesting challenges along the way.

Cheers

Pete

 

[Stampy]

You can set up recurring payments through Paypal. It won't be Direct Debit as such, but customers can sign up for a monthly payment. Not sure if that's any help?

 

[FelixSilver]

To accept payments via your website / over phone, for Protx you will need to set up or already have a merchant account with one of these banks:
http://www.protx.com/merchantaccounts.asp

 

[cjd]

If you are a new business with no track record the banks will not give you direct debit facilities I'm afraid - with direct debit they take the risk if you go bust. Continuous authority on credit card is the better option.

 

[martin33]

Thanks for all your replies.

Business will be brand new, so i guess recurring payments on protx is the way to go.

Thanks again

Martin

 

[qxteluk]

Hi Martin,

Banks are pretty fussy with DD. But if you are not collecting a lot and would put up collateral, you may stand a chance. Also, unless you are doing a lot, it is pretty expensive (one off cost, running these off BACS bureay etc). Barclays tend to be more adventurous with these sort of facility (I last checked before credit crunch hit!)

The problem with continous authority is that many consumers don't like it. If you want to do this, it has to be very easy to cancel.

Protx also offer a facility to 'repeat' a payment manually. As long as you get a customer agreement to do that, you can repeat a payment manually when the next subscription period begins. You can also program your web interface so that a customer can 'click' a button and then you send a command to Protx to repeat a payment on a customer payment.

Of course..there is still this grand old bank standing order scheme (not particulrly popular of course)

Good luck..