Bacs Direct Debit - BETA

Bacs (Bankers' Automated Clearing Services) Direct Debit is a widely used payment method in the UK. The scheme is owned and operated by pay.uk , which has very strict rules to protect shoppers. Shoppers are further protected by the Direct Debit Guarantee .

Direct Debit is a simple, cost-effective way to accept recurring payments where same-day payment isn't required. It takes around 3 business days to confirm the success or failure of a payment when a Direct Debit Instruction (DDI) is already in place and 6 business days when a new DDI must be set up.

Shoppers can choose TrueLayer to connect and verify their bank account or choose to enter the account details manually to complete the payment.

*Use our Auto FX feature to unlock more settlement currencies.

** Increase of maximum transaction amount can be supported on a case by case basis per risk assessment.

Airwallex has built a range of client-side integration methods that allow you to manage your UI, minimize your implementation effort and enable you to get to market quickly.

* We recommend you to integrate with Bacs Direct Debit using HPP or Drop-in Element. UI and UX approval according to BACS scheme rules is required for API integration.

Airwallex’s Bacs Direct Debit solution supports the following desktop and mobile channels.

Bacs Direct Debit is a cost-effective way to accept recurring payments where same-day payment isn't required. For a new order to be paid by Bacs DD, you must collect Direct Debit Instruction (DDI) from your customers, and wait for around 3 days for the BACS scheme to successfully register the DDI. It also takes another 3 days to confirm the success or failure of the payment. For subsequent transactions, when a DDI is already in place, it normally takes 3 days for a payment to be collected.

Depending on your billing cycle, you may want your customers to pay by credit card or e-wallet, which allows instant confirmation for the first payment to succeed.

In accordance with the Bacs scheme rules, shoppers MUST be authorized by the owner of a bank account before processing Bacs debits from that bank account. You are suggested to display the Direct Debit Instruction (DDI) terms below for your customers on the checkout form. Only upon your customer’s authorization will you be able to initiate debits from your customer’s bank account.

Airwallex will send Direct Debit Instruction confirmation email to your customers automatically when the DDI is successfully setup in the Bacs scheme. See a sample as below:

If you want to customize the email, contact our support team to add your corporate logo on this email. You can also turn off Airwallex confirmation email and send your own copy. You should provide the customer a confirmation for each DDI, either via email or as a downloadable copy on your website.

You should include wording advising of the content and purpose of this email, and that the recipient should check all the details and contact support using a provided contact method if anything is incorrect. You should also include below information in your email:

You should provide the DDI registration status to your customers and an option for them to cancel the DDI.

Advance notice is one of the main protections offered by the Direct Debit Guarantee. It requires service providers to give customers a notice for a Direct Debit payment before it’s debited from their accounts. Airwallex will send Advance Notice to your customers automatically when DDI is setup or subsequent transaction request is received. See a sample as below:

If you want to customize the email, contact our support team to add your corporate logo on this email. You can also turn off Airwallex confirmation email and send your own copy.

You should include wording advising of the content and purpose of this email, and that the recipient should check all the details and contact support using a provided contact method if anything is incorrect. You should also include below information in your email:

You should provide the DDI registration status to your customers and option for them to cancel the DDI.

Airwallex offers TrueLayer and micro-deposit services to help you verify the bank accounts. TrueLayer is an open banking solution that helps you verify the banks account instantly and securely. You are suggested to enable both options during configuration.

For micro-deposit verification, Airwallex will send 2 micro deposits to the owner’s bank account and an email with the verification link to the shopper. The 2 micro deposits may take up to 2 days to arrive. After the shopper receives the micro deposits, they can enter the 2 amounts on verification link to get the account verified. Learn more about micro-deposit verification.

Customers can dispute a payment through their bank for an unlimited period of time. Bacs Direct Debit disputes are final and can’t be appealed. If a customer successfully disputes a payment, you must contact shoppers if they want to resolve the situation by initiating a new payment.

Any bank rejections or indemnity claims* are treated as disputes by Airwallex. If a dispute gets created, Airwallex sends the dispute.accepted webhook event, and deducts the amount of the dispute and associated dispute fee from your pending settlement amount.