What is Direct Debit?

Direct Debit is an arrangement made with your bank or building society. It allows a third party to withdraw money from a person’s account.

In the UK, 75% of all regular payments are made with Direct Debit.

Here are the steps that take place:

  1. A payment request is submitted
  2. Payer’s bank receives the request
  3. Merchant is credited with the payment

The payer must have advised their bank or building society that the payee has been authorised to draw the funds.

What are Direct Debits used for?

Typically, Direct Debits are used to set up recurring payments.

These payments could include bills for credit cards or utilities and the payment amount may stay the same, or it could vary.

Direct Debits can also be used to pay for lifestyle choices such as monthly gym memberships or magazine subscriptions.

As well as personal bills, businesses can also pay regular or occasional bills in this way too.

Direct Debit can also be used for one-off payments.

Once the Direct Debit has been authorised, the fund withdrawal dates and amounts are set between the payee and payer.

What is GoCardless?

As the UK’s leading Direct Debit provider, the GoCardless online tool processes payments for over 30,000 organisations, such as Thomas Cook and HM Government.

Paying with bank transfers, cheques, cash, or one-off card payments, means it’s harder to keep on top of things.

With GoCardless you only need to set up the payment once, which means there will be no accidental disruptions to your service, subscription or membership.

It’s this simple:

  1. Complete an online form
  2. Your payment will go out

You can rest easy knowing that GoCardless gives you certainty. At any point, you will know how much you’ll be paying and when the payment will come out.

Budgeting has never been easier!

What are the benefits of paying by Direct Debit?

Keyboard and card

Credit: TwilightEye

Saves you time
Once you’ve set up and authorised the payment, it can be left alone. This means you won’t have to waste time setting up new payments every single month.

Payments will be automatic, so bills can never be forgotten, delayed or lost entirely.

Saves you money
As your payments will be automated, it means there is less chance of you paying late fees. It allows you to plan your finances as you can see clearly what is coming out every month. Regular payments mean that you can focus on other activities such as your business and increasing revenue.

Direct Debit is secure
With excellent security technology, you can have complete confidence in your payments.

What are the benefits of using GoCardless?

Stay aware
GoCardless will notify you that a payment will be coming out 3 days in advance. This will allow you to keep on top of your finances and raise any issues if you need to.

You’re protected

The Direct Debit Guarantee is offered by all banks and building societies and means that you’re fully protected.

The guarantee includes:

  • If there are any changes to the amount, date, or interval of the Direct Debit payment, you will be notified 3 days in advance of the account being debited.
  • If an error is made by your bank, building society, or GoCardless, you are entitled to a full and immediate refund.
  • You may cancel a Direct Debit at any time.

GoCardless is authorised
Authorised by the Financial Conduct Authority to provide payment, GoCardless is also ISO 27001 accredited.

You can cancel
If you no longer wish to pay your Direct Debit, you can cancel at any time. This can be achieved through your online banking or by contacting your bank or building society.

Paying by Direct Debit will help Chameleon-i
As well as being easier for you, paying by Direct Debit will help our business.

Here is why:

  • It will help our business run more efficiently
  • It will keep costs down
  • It will save us time

Want to know more about Direct Debit payment?

If you would like to know more or would like to set up a Direct Debit payment with us, please contact us and we’d be happy to help.