Bacs Direct Debit
Learn about Bacs Direct Debit, one of the most common bank-to-bank transfers in the UK.
Yorlet users in the UK have the ability to receive Bacs Direct Debit payments from customers who have a UK bank account. This means you can offer a secure and convenient payment option for your customers, who can easily authorise payments without having to manually initiate them every time.
Collect a Bacs Direct Debit
To collect a Bacs Direct Debit payment method, follow these steps:
- Navigate to the customer account for which you want to collect the payment method.
- Under the Payment methods section, click Collect payment method.
- Choose the Bacs Direct Debit payment method type. You can also select multiple methods or just one; the customer will only be able to supply one method in the session.
- Optionally, you can choose an active subscription to allocate the payment method to. This will update the subscription’s default payment method and set the collection method to Charge automatically.
- Optionally, you can choose to send the collection link to the customer’s email.
- Click Create.
- Share the collection link with your customer.
Timing
Bacs Direct Debit payments work on a 3 business day cycle.
Occasionally, Bacs Direct Debits can fail even if they have been marked as paid in your Yorlet account. In such cases, a dispute is created for the payment, with the reason code we receive from the network. If the payment is for an invoice, the invoice will be updated to show the late payment failure, and a new invoice will be created automatically to recover the funds.
This table illustrates the timings for a Bacs Direct Debit payment:
| Day | Event |
|---|---|
| Day 0 (before 20:00) | The payment is submitted |
| Day 2 | The funds leave the customers account |
| Day 3 | The funds settle to your Yorlet merchant account |
Notifcations
The Bacs Direct Debit scheme requires customers be notified about the follwing events:
- When payment details are collected and the mandate is submitted
- Every time a payment is submitted
Yorlet automatically handles sending these emails to your customers.
Disputes
Bacs Direct Debit disputes are final and cannot be appealed. If a customer successfully disputes a payment, you must contact them to resolve the dispute. If you’re able to come to an agreement and your customer is willing to return the funds, you can create a new payment.
Bacs Direct Debit is one of the most popular methods used by Yorlet customers in the UK to collect rent. Although there is risk associated with accepting Bacs Direct Debit for rent payments, fraudulent disputes are extremely rare and in the event of a dispute, we work with customers to recover funds.
Refunds
Refunds for payments made with Bacs Direct Debit must be requested within 180 days of the original payment. Refunds usually take 3-4 business days to be processed. If you accidentally charge your customer, please contact them right away to prevent a payment dispute. Learn how to create a refund.