How do I activate BACS Direct Debit on my invoices? (UK)

BACS Direct Debit, also known as Bankers’ Automated Clearing System (BACS), is available through Stripe and allows businesses to receive online payments from clients through bank-to-bank transfers in GBP currency. 

 

BACS Direct Debit is available to businesses that have selected United Kingdom in Basic Information settings.

 

• Details
• Activate BACS Direct Debit on Invoices
• BACS Direct Debit Mandates
  • Send a BACS Direct Debit Set Up Form
  • Pay with BACS Direct Debit Mandates

 

Details

• Availability - For businesses based in the United Kingdom that already have Stripe set up
• Transaction Fee - 1% + 20p per transaction with caps of £4 for Lite and Plus, £2 for Premium and Select
• Processing / Payout Schedule - Direct Debit payments take up to 6 business days to process; initial Direct Debit Mandate payments take anywhere from 1-7 business days to process at first, subsequent payments can be processed quicker
• Chargebacks - Review Stripe’s disputes and fraud process here

 

Activate BACS Direct Debit on Invoices

Direct Debit can be activated on any Invoice where the currency is in GBP (£) with the below steps:

1. If you have not yet set up Stripe, complete the steps to accept online payments with Stripe first
2. When creating an invoice, under Settings, select Accept Online Payments
   
3. Under Stripe, check off the box next to Accept Direct Debit (GBP £). If you check off Accept Credit Cards as well, your clients can pay by either credit card or Direct Debit on this invoice; if only one is checked off, your clients can only pay by the selected option
   
4. Select Done to finish applying the payment settings and continue editing the rest of your invoice. 

To review what the experience looks like for your Clients when paying by Direct Debit, review As a client, how do I pay with Direct Debit? here.

 

BACS Direct Debit Mandates

Direct Debit Mandates allow you, as a business owner, to easily save the client’s Direct Debit information for future use on a single invoice, or through recurring payments on recurring templates without having to request authorisation each time. This requires you to send a Direct Debit Set Up Form (also known as a Direct Debit Instruction) to safely collect the client’s payment details first before using it to pay invoices.

Send a BACS Direct Debit Set Up Form

To send a Direct Debit Set Up Form, use the below steps:

1. Select the Clients section
2. Then select a client you’d like to send a Direct Debit Mandate to
3. In the client profile, under Online Payment, select the + button and then select Set Up Direct Debit
   
4. A Direct Debit Setup Form email preview will appear - feel free to add additional emails in the To field or modify the Subject line
5. Select in the Enter a Personal Message field if you’d like to add details
6. Then select Send Setup Form
7. In the client profile, under Payment Options, this will display as Request Pending… until your client has completed the Set Up form
   
8. Once the Set Up Form has been completed, you’ll find Account ending in xxxx under Direct Debit in the client’s profile. You can now use this saved information to pay invoices or for recurring payments on recurring templates.
   
   

To review what the experience looks like for your Clients when receiving and completing a Direct Debit Setup Form, review As a client, how do I pay with Direct Debit? here.

 

Pay with BACS Direct Debit Mandates

To pay an invoice or set up recurring payments on a recurring template with a Direct Debit Mandate, use the below steps:

For an Invoice

1. Select the Invoices section
2. Then select the invoice you want to pay with a Direct Debit Mandate on
3. Next, select the Direct Debit button
   
4. Choose the saved Direct Debit Mandate and select the Pay ‎€‎xx.xx‎ button
5. Select Done to confirm
6. Your client will receive an email indicating a Direct Debit payment is processing within the next 7 business days, along with a link to the invoice.

 

For a Recurring Template

Note: A Mandate must be saved first before you can use it on a recurring template. 

1. Select the Invoices section, then select the Recurring Templates sub-tab
2. For a new recurring template, select the plus button and create your new recurring template
3. Or for an existing recurring template, select a recurring template
4. In the Accept Online Payments section, under Automatic Payments, select the Add your client’s payment method link
   
5. Select the Direct Debit Mandate, then select the Apply button
   
6. Finish making your recurring template as usual and select Save… to send
7. When a recurring template generates an invoice, your client will receive an email indicating a Direct Debit payment is processing within the next 7 business days, along with a link to the invoice.