How do I enable BACS Direct Debit on my Invoices? (UK)
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.
- Enable Direct Debit in Stripe
- Enable Direct Debit on an Invoice
- Client View of Paying with Direct Debit
Enable Direct Debit in Stripe
For users who have been invited to participate in Direct Debit, please follow the steps below:
- Ensure you have a Stripe account connected first
- Log into your Stripe dashboard
- Click on Settings on the left
- Under Business Settings in the Payments and Payouts area, click on Payment methods
- Next to Bacs Direct Debit (Beta), click on the Activate button
- In the Activate Bacs Direct Debit pop-up, click the dot next to the 1% + 20p option
- Click on Activate to save
- Then email email@example.com directly to get Direct Debit enabled inside your FreshBooks account.
Enable Direct Debit on an Invoice
Direct Debit can be enabled on any Invoice where the currency is in GBP (£) with the below steps:
- When creating an Invoice, click on the Accept Online Payments option in the Settings panel to the right of the Invoice
- 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
- Click Done to finish applying the payment settings and continue editing the rest of your Invoice.
Note: All Direct Debit transactions will have a fee of 1% + 20p per transaction + a cap of £4 on Lite & Plus plans or £2 on Premium & Select plans.
Client View of Paying with Direct Debit
Once the Invoice is sent to your Client, they can pay using Direct Debit with the below steps:
- Open the Invoice from the email that was sent to you
- Click on the View Invoice button in the email
- If you see multiple tabs, ensure you’re on the Direct Debit tab
- Click on the Pay £xx.xx button
- Next, you’ll be taken to the Set up BACS Direct Debit form for this one-time payment, enter your Email Address
- Then enter your Sort Code and Account Number
- Next, enter your Name on Account and your Billing Address
- Check off the box next to I understand that Stripe will be collecting Direct Debits on behalf of [Business Name] and confirm that I am the account holder and the only person required to authorise debits from this account
- Click on the Set up Direct Debit button to confirm
- Review your Direct Debit details and click on Confirm to pay the Invoice.
How can I get access to the Direct Debit program?
Right now, the Direct Debit program is in closed beta to specific invited users only while we work on making it better. If you’d like to be considered in the near future when we open to more users, please reach out to firstname.lastname@example.org directly.
How long does a Direct Debit payment take to process?
Each payment can take up to 6 business days before appearing in your Stripe dashboard and becoming available for withdrawal. As we continue to build out Direct Debit, processing times may be processed faster in the near future.
Will FreshBooks support other BACS methods?
Yes, Direct Debit Mandates, which will allow you to collect future payments by saving the client’s payment details, and Recurring Direct Debit are planned to be added in the near future.