Bacs Direct Debit - BETA
This payment method is currently available in beta testing program. Please reach out to your Airwallex account manager or [email protected] if you'd like to join the beta.
Gain access to shoppers through Bacs Direct Debit
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.
Both one-off and recurring payments are supported by Bacs. Due to the nature of delayed notification which may take up to days for payments to succeed, we recommend accepting Bacs Direct Debit for recurring services.
Shoppers can choose TrueLayer to connect and verify their bank account or choose to enter the account details manually to complete the payment.
Payment method properties
| Features | Bacs |
|---|---|
| Payment type | Direct Debit |
| Available for businesses registered in | AU, UK, EU, US, HK, SG |
| Activation time for onboarding | Instant |
| Shopper regions (typically used by payers from) | UK |
| Processing currencies | GBP |
| Settlement currencies | GBP or in your default settlement currency if your account does not support GBP settlement |
| Settlement schedule | T+3 business days, subject to reserve plans |
| Minimum transaction amount | 1 GBP |
| Maximum transaction amount* | 100,000 GBP, subject to risk approval |
| Session timeout | N/A |
| Recurring Payment | ✅ |
| Refunds | ✅ |
| Partial Refunds | ✅ |
| Disputes (chargebacks) | ✅ |
| Placing a hold (delayed/manual capture) | ⛔ |
| Descriptor (what the payer will see in their transaction history) | Airwallex |
| Payments for Platforms support | ✅ |
* Support for increasing the maximum transaction amount is available on a case by case basis upon risk approval.
Choose the integration method that best suits your needs
Airwallex has built a range of client-side integration methods that allow you to manage your UI, minimize your implementation effort, and allow you to get to market quickly.
| Online payments via your own website/app | Online payments via ecommerce plugins | Payment links & Invoice Integrations |
|---|---|---|
| ✅ Hosted Payment Page ✅ Drop-in Element ⛔ Embedded Elements ⛔ Mobile SDK ✅ Native API ⛔ Subscription APIs |
⛔ Shopify ⛔ WooCommerce ⛔ Shopline ⛔ ShopLazza ⛔ Magento |
✅ Payment Links ✅ Xero Invoice |
| Attributes | Sample |
|---|---|
| Account holder name | John Smith |
| Sort code | 123456789 |
| Account number | xxxx0123 |
| Bank name | ABC bank |
| Direct Debit Instruction reference id | xxx234 |
| Contact information | [email protected] |
| Direct Debit Guarantee | Use the exact terms from Direct Debit Guarantee |
You should provide the DDI registration status to your customers and an option for them to cancel the DDI.
Advance notice
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:
| Attributes | Sample |
|---|---|
| Advance notice period | 3 days |
| Account holder name | John Smith |
| Debit amount | $ 100 |
| Frequency | Monthly |
| Contact information | [email protected] |
| Direct Debit Guarantee | Use the exact terms from Direct Debit Guarantee |
You should provide the DDI registration status to your customers and option for them to cancel the DDI.
Verification
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.
Disputes
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.
Disputes on Bacs payments are fundamentally different than those on credit card payments. You cannot defend against Bacs Direct Debit disputes. These will always result in the settlement being reversed. You must contact your customer to resolve the situation.
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.
Risk of double-crediting with Bacs Direct Debit refunds and disputes
Please note the risk of double crediting with Bacs refunds and disputes. If you proactively issue your shopper a refund while their bank also initiates the dispute process, they may receive two credits for the same transaction.
When issuing a refund for a Bacs payment, you must notify your customer immediately that you’re issuing the refund and that it may take 3-4 business days for the funds to arrive in their bank account.
* The method by which a payer can claim their payment back under the Direct Debit Guarantee. The bank is obliged to offer an immediate refund in the event that a Direct Debit has been taken in error or without authority.