Direct Debit is an automated payment method that allows you to collect payment from your customer’s bank account.
There are two main reasons why Direct Debits are a smart way for small businesses to collect payment:
- Direct Debits are taken automatically from your customer’s bank account
After your customer has authorised a Direct Debit mandate from you, you can set up future payments from their bank account. Your customer always gets notified of the amounts and payment dates but because the payments are automatic, your customer doesn’t need to remember to pay. This means you spend less time chasing up on late payments.
- Direct Debit payments are bank-to-bank
There’s no card network involved in processing Direct Debit payments so the cost stays low and there’s no risk of failed payments due to expired cards.
For peace of mind for your customers, all Direct Debits are covered by the Direct Debit Guarantee. Read more about this at the Bacs website:
Bacs | Direct Debit Guarantee »
You can collect invoice payments by Direct Debit via your Tide account. This service is provided by our partner, GoCardless. Find out more:
Tide | Features | Direct Debit with GoCardless »