Partnership with GoCardless
WebCollect's direct debit solution is provided in partnership with GoCardless. The solution is fully integrated, which means that during the checkout process, members are transferred to the GoCardless site to set up their direct debit and then come back to WebCollect to complete their order. The whole process is very simple (much better than the traditional Direct Debit mandate forms) and takes only a few minutes. Click here to see the page flow for members.
In order to use the direct debit payment method, the organisation sets up an account with GoCardless. Again this process is fully integrated with the WebCollect site and takes only a few minutes. Click here for details on setting up the direct debit payment method.
GoCardless collects the direct debit payments from members, and passes the funds onto the organisation directly. The funds do not pass through WebCollect's bank accounts. GoCardless accesses the Direct Debit network through its sponsor, the Royal Bank of Scotland and is registered as a small Payments Institution with the Financial Services Authority.
GoCardless is currently available to organisations in the UK. Unfortunately it is not available in the Channel Islands or Isle of Man. It is however being rolled out across EU countries, and may be available via WebCollect in more countries soon.
Transaction Charges for using the Direct Debit payment method
There is no set-up or monthly fee for using the GoCardless service. A transaction charge is deducted from the amount paid by the member to GoCardless before it is passed onto the organisation. Details of the current charges for direct debits are set out on our Pricing page. The transaction charge is a combination of GoCardless and WebCollect's charges for providing the service. It is considerably cheaper than Paypal or credit/debit card charges.
Online Direct Debit - how it works
Single Payment
Although most people think of direct debit as something that is used to pay repeat bills like gas and electricity, it can also be an easy and cost effective way to make one off payments. The first time a member pays using direct debit, they will set up a Direct Debit authorisation with GoCardless. This only takes a few moments. The next time they make a payment, they can choose to use the existing authorisation to pay for the order. No need to go to GoCardless a second time or re-add their bank account details, making it a very convenient way to pay.
Recurring Payments
When the member first makes a payment using the direct debit, they create a Direct Debit authorisation to the organisation. That direct debit authorisation can be used for:
- any further purchases the member makes, without them needing to login to their GoCardless account and confirm all their details again;
- any orders you place on their behalf; and
- to automatically collect subscription renewals.
Each time a payment is taken on the direct debit, the member will automatically be sent an email by WebCollect and by GoCardless letting them know how much has been taken and what it is for.
Money Flow
When a member makes a direct debit payment, the funds are transferred from their bank account to GoCardless. If it is the first time the member has used GoCardless, this can take around 5 business days (as there is a verification process for the first payment). Future payments are usually slightly quicker, but will still be a few business days. When GoCardless receives the funds, the GoCardless system will automatically notify WebCollect. WebCollect will automatically update the order status to Payment Received. Click here for details on how order processing works for direct debit.
A few days later, GoCardless will pass on the funds (less their and our commission) to the organisation's bank account. GoCardless notifies WebCollect that the funds have been passed on and WebCollect reports this automatically by updating the order status to Payment Transferred.
You can check where you are in the process for any order by looking at its order status in WebCollect. You can also login to your GoCardless account and look up the order.
Refunds
Unfortunately, refunding members is not currently an option via GoCardless. They have promised that this is a feature they will add soon, and we will update our home page blog as we get any news on this. In the meantime, you will need to refund the member by other means. Click here for details on how to record the refund in WebCollect.
Bank Accounts that Require 2 Signatories
Member Bank Accounts
If the member's bank account requires 2 signatories, they should complete the online form as usual to set up their payment, and then download the PDF paper mandate from the link at the bottom of the payment pages and post it to GoCardless. If the payment doesn't go through because of the 2 signatory requirement, it will appear on GoCardless as a cancelled Direct Debit Instruction (DDI), and GoCardless will notify the member the reason why it was cancelled. When the DDI is cancelled, WebCollect will automatically be notified and you will see the order status update automatically to "Payment Problem".
Organisation Bank Accounts
If your organisation bank account requires 2 signatories, this is not an issue for setting up a GoCardless Merchant Account, because you are receiving the funds, not paying them out.
