What is a Direct Debit? How UK businesses collect regular payments
By SendPay Business · · 2 min read
- 1Set up the plan once
- 2It renews on the same day each month
- 3Payments arrive without chasing
A Direct Debit is an instruction a customer gives their bank to let a business collect money from their account. The business decides the amount and date, within what it has told the customer, which makes it popular for bills that vary, such as utilities.
How it works
- The customer signs a Direct Debit mandate with the business.
- The business tells the customer in advance how much it will take and when.
- On the date, the business collects the payment through the Bacs system.
- The customer can cancel the mandate with their bank at any time.
Direct Debit vs standing order
With a standing order, the customer sets a fixed amount and date and the bank sends it; the business can't change it. With a Direct Debit, the business pulls the payment and can change the amount, as long as it gives notice.
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Direct Debit vs card subscriptions
Card subscriptions charge a saved card on a schedule and can start straight away. Direct Debits usually take a few days to set up and collect, but tend to cost less per payment and don't fail when a card expires.
The Direct Debit Guarantee
If a payment is taken in error, the customer is entitled to an immediate refund from their bank. That protection is one reason customers are comfortable with Direct Debits.
Where SendPay fits
SendPay platforms include subscriptions, so your customers can be charged on a repeating schedule under your brand, powered by licensed partners.
How it works
Your own money app- 1Name it and pick your colours
- 2Choose what it does
- 3Launch when you are ready
Why sign up
Create your free SendPay account
It's all about creating your own financial platform with ease. Start with a free account today.
- 🪪A free business accountOpen it in about a minute with your business name, email, password and mobile. No card and no documents to start.
- 💳Get paid from day oneTake card payments, and share your own payment link and invoices so customers pay in a click.
- 🌐A free business websiteFree to build, free to publish and free to keep, with unlimited visits.
- 🚀Your own financial platformDesign and preview your whole platform free, then launch when you are ready.
SendPay Business is a technology company, not a bank. Accounts, cards and payments are powered by licensed partners.
Questions people ask
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Subscriptions platform guide →Read next
Spotted a mistake or something out of date? and we'll fix it. How our guides are made
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.