GoCardless Direct Debit invoice payments

This feature is only available from Sage 200 Professional Summer 2018 version onwards.

Warning: You must apply this following hotfix if you are using GoCardless with all Sage 200 Professional versions up to and including 2020 R2. If you do not apply this hotfix, transactions may be processed incorrectly, and the GoCardless integration with Sage 200 will not be supported. For assistance, please contact your Sage 200 support provider.

What is GoCardless for Invoice Payments?

With Sage 200 you can integrate with GoCardless to take payments from your customers using Direct Debit.

You can manage the process from Sage 200:

  • Create a new GoCardless account.
  • Collect payments from your customers using Direct Debit.
  • Download payment receipts and automatically make allocations in Sage 200.

Pricing

For details on pricing, please visit the GoCardless - Pricing plans.

About GoCardless

GoCardless is the UK's leading Direct Debit provider, providing payment services for more than 25,000 businesses. They process over £3bn worth of transactions with clients ranging from small businesses to household names, including Sage.

GoCardless are authorised by the Financial Conduct Authority (FCA) to provide payment services as an Authorised Payment Institution and serve more businesses than any other Direct Debit provider.

About GoCardless

GoCardless security credentials

Direct Debit

When to use Direct Debit

Direct Debit payments are particularly good for:

  • Regular payments - for example, subscriptions or regular donations.
  • Customers with an ongoing relationship - for example, account customers.
  • Invoicing for services - for example, accountancy, or tax advice.

Direct Debit payments are not so good for:

  • Transactions which need instant clearing - for example e-commerce.
  • High-value, one-off payments for liquid goods - for example gold bullion.
  • Transactions likely to experience chargebacks - for example gambling.

Note: GoCardless Direct Debit payments can be for a minimum of £1/€1 and a maximum of £5000/€5000.

What is Direct Debit?

A Direct Debit authorises you to collect payments from your customers bank account when they are due. Your customers give this authorisation by completing a Direct Debit mandate online. Once authorised, you can automatically collect payments from your customer.

Two things make Direct Debit unique:

  • Direct Debit is a bank to bank payment method - There are no card networks involved. This makes it cheaper.
  • Direct Debit is a pull based system - Instead of a business waiting for the customer to push funds, the business has permission to pull funds when a payment is due.

Paying customers are notified before a payment is taken, and details are taken using a secure GoCardless hosted payments page.

The Direct Debit Guarantee

The Direct Debit Guarantee is the Direct Debit scheme's consumer protection. The Guarantee protects consumers against payments made in error or fraudulently. The guarantee protects customers in these ways:

  • Notifications - customers must be notified in advance of each payment.
  • Refunds - customers are entitled to a full and immediate refund of any payment that has been taken in error.
  • Cancellations - customers can cancel a Direct Debit mandate at any time by contacting their bank.

Direct Debit mandates

In order to take payments by Direct Debit your customer must complete a Direct Debit mandate. This authorises you to take payments using Direct Debit.

Before you can collect payment by Direct Debit, your customer must issue you with a mandate. This mandate is called a Direct Debit Instruction, or DDI, although it is commonly referred to as a Direct Debit mandate.

The details of each authorisation are standardised:

  • All future payments are authorised, so you can collect any amount at any time from your customer.
  • Your customer must be notified of each payment before it's collected. When you request a payment, an email is automatically sent to your customer.
  • All payments are covered by the Direct Debit Guarantee, which protects customers from payments taken in error. See more details on the Direct Debit Guarantee.

The notification requirements of a DDI and the Direct Debit Guarantee help protect them from any other payments taken in error or fraudulently.

Direct Debit payment timings

GBP payments using Bacs

Once submitted to the banks, the Direct Debit Instruction will be active within a couple of working days. Once active you can start taking payments against it.

Once submitted to the banks, Direct Debit payments are processed using the Bacs three day cycle.

In summary:

  • If a Direct Debit mandate is already in place, payment is collected 2 working days after submission, can be considered 99% confirmed 3 working days after submission, and 100% confirmed after 4 working days.
  • If a Direct Debit mandate needs to be created, payment is collected 4 working days after submission, can be considered 99% confirmed 5 working days after submission, and 100% confirmed after 6 working days.

For more details, see Direct Debit timings.

Euro payments using SEPA

Payments take at least 2 interbank working days under the B2B scheme and 3 interbank working days under the Core scheme to clear on your bank account.

Cut-off to submit payments in SEPA Core Direct Debit Scheme:

  • For first payment collections, you must submit the collection to the banks 5 interbank business days before the payment due date.
  • For subsequent payment collections, you must submit the collection to the banks 2 interbank business days before the payment due date.

Cut-off to submit payments in SEPA B2B Direct Debit Scheme:

  • Under the SEPA B2B Direct Debit Scheme, you will need to submit a collection to the banks 1 interbank working day before the payment due date.

For more details, see SEPA Direct Debit payment timings.

How will my customers pay by Direct Debit?

To set up the Direct Debit and pay the invoice, your customer will follow these steps:

  • The customer receives your invoice, then clicks Pay Now and chooses Direct Debit.
  • The customer enters some personal and bank details to set up the Direct Debit.
  • The Direct Debit will usually take 2 days to be processed.

    The customer will receive an email confirmation from GoCardless when it is processed.

  • Once the Direct Debit is processed, the payment will usually take 4 days to be collected.

    The customer will receive an email notification from GoCardless when you initially request the payment, which is when you print the invoice in Sage 200.

  • When you next print an invoice for this customer, the payment is sent automatically to GoCardless. The invoice will not include a Pay Now button, so your customer can't accidentally set it up twice.

What happens if I stop using GoCardless?

If you disconnect the GoCardless service for Invoice Payments, there may still be payments that are due to be collected by Direct Debit. You should check your GoCardless account and cancel any payments that you do not want to collect.

If you are stopping using GoCardless altogether, you should also close your GoCardless account.

Your GoCardless account

To view your GoCardless account, please visit the GoCardless dashboard.

You can use the dashboard to check a Direct Debit status, cancel a payment, cancel a mandate, or retry a collection.

Change your GoCardless log in

You may need to change your GoCardless login email for a number of reasons, for example, email no longer in use, or someone leaving the business.

You can change your GoCardless email login in the GoCardless dashboard.

If Sage 200 is connected to GoCardless, you don't need to do anything. If you're prompted to connect in the future, use your new email login.

Contacting GoCardless

  • If your query is regarding the integration between Sage and GoCardless, or is specific to Sage 200, please contact Sage Support.
  • If your query is specific to GoCardless, contact [email protected]. For example, for queries regarding your account, making refunds, payment queries, changing your package, adding a new currency account, or if you are new to GoCardless.

Sage is providing this article for organisations to use for general guidance. Sage works hard to ensure the information is correct at the time of publication and strives to keep all supplied information up-to-date and accurate, but makes no representations or warranties of any kind—express or implied—about the ongoing accuracy, reliability, suitability, or completeness of the information provided.

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