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Direct Debit

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General

This page is designed to provide a high-level understanding of what Direct Debit is and what it looks like when implemented with UNIPaaS. To go directly to implementation options, click here.

What is Direct Debit?

Direct Debit is a widely-used payment method in the UK that allows authorized vendors to collect funds directly from their customers' bank accounts. It is commonly used for recurring payments such as bills, subscriptions, memberships, and more. However, it can also be used for one-off or ongoing ad hoc payments.

Benefits of implementing Direct Debit

By incorporating UNIPaaS Direct Debit offering into your platform, you can unlock new opportunities with your vendors who may currently rely on third-party solutions for Direct Debit payments. Enabling Direct Debit within your payment solution brings significant benefits for both your platform and your users.

Benefits for your platform:

  • New revenue stream: Access transactions previously unavailable to your payment solution, with higher profit margins compared to other payment methods.
  • Minimal integration effort: Implementing Direct Debit is straightforward and requires minimal development effort.
  • Enhanced payment experience: Provide your users with a comprehensive payment experience within your platform, fostering loyalty and retention.

Benefits for your vendors:

  • One-stop shop: Enable your vendors to use Direct Debit within your platform without additional sign-ups or logins to third-party services.
  • Streamlined payments: Automate payment collections, eliminating manual processes and reducing the risk of missed due dates.
  • Competitive transaction fees: Offer your vendors highly competitive transaction fees for Direct Debit payments.

How does UNIPaaS Direct Debit work?

  • Onboarding completion: Direct Debit is only available to vendors who have completed their onboarding process. Until then, vendors can see the Direct Debit option but cannot utilize it. Once onboarding is complete, Direct Debit becomes accessible.
  • Requesting Direct Debit mandates: Vendors must request Direct Debit mandates from their customers. This triggers an email containing instructions for the customer to provide the mandate.
  • Mandate flow: Customers are directed to a mandate flow where they provide the required details and submit them for approval.
  • Collecting payments: Once the mandate is set up, vendors can start collecting payments via Direct Debit.

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Important

A payment can be made either by Direct Debit OR by other payment methods. While it is possible to switch between these options, simultaneous use is not possible.

  • Monitoring Direct Debit mandates: Vendors can monitor and manage their Direct Debit mandates through the Pay Portal UI Web-Embed, specifically under the Direct Debit tab.
  • Monitoring Direct Debit collections: Vendors can monitor and manage their Direct Debit collections through the Pay Portal UI Web-Embed, accessible under the Direct Debit tab.

Implementation options

There are two primary methods to implement Direct Debit within your embedded payment solution:

Testing your Direct Debit implementation

See Direct Debit Test Scenarios

Updated over 1 year ago