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      How do I enable BACS Direct Debit on my Invoices? (UK)

      BACS Direct Debit is available to businesses that have selected United Kingdom in their Company Profile.

       

      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. All BACS Direct Debit payments are 1% + 20p per transaction with a cap of £4 on Lite & Plus plans or £2 on Premium & Select plans.

       

       

      Enable BACS Direct Debit on Invoices

      Direct Debit can be enabled 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, click on the Accept Online Payments option in the Settings panel to the right of the Invoice
        Accept online payments under settings on invoice.
      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
        Checkbox checked off next to accept direct debit.
      4. Click Done to finish applying the payment settings and continue editing the rest of your Invoice. 

       

      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. Click on the Clients section
      2. Then click on a Client you’d like to send a Direct Debit Mandate to
      3. Click on the Set Up Direct Debit button inside their Client Profile
        Set up direct debit button in client profile.
      4. A Direct Debit Setup Form email preview will appear - feel free to add additional emails in the To field or modify theSubject line
      5. Click in the Enter a Personal Message field if you’d like to add details
      6. Then click Send Setup Form
      7. In the Client Profile, under Saved Payment Methods, this will display as Request Pending… until your Client has completed the Set Up form
        Request pending under payment method in client profile.
      8. Once the Set Up Form has been completed, you’ll see Account ending in xxxx under the Saved Payment Methods in the Client’s Profile. You can now use this saved information to pay Invoices or for Recurring Payments on Recurring Templates.
        Saved payment method displayed in client profile.

       

      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. Go to the Invoices section
      2. Click on the Invoice you want to pay with a Direct Debit Mandate on
      3. Then click on the Direct Debit button
        Direct debit button above invoice.
      4. Choose the saved Direct Debit Mandate and click on the Pay ‎€‎xx.xx‎ button
      5. Click 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. Go to the Invoices section, then click on the Recurring Templates sub-tab
      2. For a new Recurring Template, click on the plus button and create your new Template
      3. Or for an existing Recurring Template, click on a Template
      4. In the Accept Online Payments section, click on the Add your client’s payment method link under Automatic Payments
        Add client payment method link on recurring template settings.
      5. Click to select the Direct Debit Mandate, then click on the Apply button
        Apply button for direct debit payment.
      6. Finish making your Recurring Template as usual and click on 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.

       

      Client View

      Pay with BACS Direct Debit

      Once the Invoice is sent to your Client, they can pay using Direct Debit with the below steps:

      1. Open the Invoice from the email that was sent to you
      2. Click on the View Invoice button in the email
      3. If you see multiple tabs, ensure you’re on the Direct Debit tab
        Direct debit tab on payment form of invoice.
      4. Click on the Pay £xx.xx button
      5. Next, you’ll be taken to the Set up BACS Direct Debit form for this one-time payment, enter your Email Address
      6. Then enter your Sort Code and Account Number
        Sort code and account number fields on form to fill out.
      7. Next, enter your Name on Account and your Billing Address
      8. 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
        Checkbox to authorise Direct Debit.
      9. Click on the Set up Direct Debit button to confirm
      10. Review your Direct Debit details and click on Confirm to pay the Invoice.
        Confirm direct debit details button at bottom of summary.


      Complete a BACS Direct Debit Set Up Form

      A Direct Debit Set Up Form allows you to authorise the Business Owner to take future payments from your bank account for Invoices and Recurring Invoices.

      1. In the email, click on the Set Up Direct Debit button
      2. Then in the page that appears, click on Set Up Direct Debit button to begin
      3. Enter your Email Address in the field provided
      4. Then enter your Sort Code and Account Number
        Sort code and account number fields on form to fill out.
      5. Next, enter your Name on Account and your Billing Address
      6. 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
        Checkbox to authorise Direct Debit.
      7. Review your Direct Debit details and click on Confirm
      8. A confirmation page will let you know your Direct Debit set up has been successful.

      FAQs

      How long does a Direct Debit payment take to process?

      Each payment can take up to 6 business days while the initial Direct Debit Mandate payment can take anywhere from 1-7 business days to process before appearing in your Stripe dashboard and becoming available for withdrawal. Once a Mandate has been set up, payments may process much quicker within the 1-7 business days.

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