Understanding the payment process
GoCardless enables you to collect payments from customers both domestically and internationally, through a global network of connected bank debit systems.
At its core, bank debit is a pull-based payment mechanism, putting you in control of collecting payments from your clients, rather than relying on them to send you funds when payment is due.
What is bank debit?
Bank debit is the universal term we use to refer to the bank-to-bank payment method through which payments are processed within the GoCardless network.
Common regional terms include Direct Debit; Pre-Authorised Debit (or Pre-Auth); or in some cases, by the name of their operator, such as ACH in the US. [Click here to read more].
The GoCardless payment process has been designed with simplicity in mind, whilst still ensuring you have the flexibility you need to get paid on time, every time.
The end-to-end process can be broken down into three simple steps :
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Invite your customer to authorise you to collect funds from their account *
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Set up their payment(s)
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Receive and reconcile your collected funds
* A bank debit authorisation, stored on a payer’s bank account to allow the collection of funds by a specified party, is commonly referred to as a mandate. Other common terms include Direct Debit Instruction (DDI), pre-auth, or active direct debit.
Invite
Invite your customers to set up an authorisation
Authorise
Customer sets up a mandate, giving approval for payments to be collected
Create
A payment is set up to be collected from the customer
Notify
An advance payment notification is sent to the customer
Request
Payment is requested from the customers bank
Received
The funds are received into GoCardless ring-fenced client monies account
Updated
The payment status is updated to confirmed or failed
Paid out
The collected funds are paid out to you
Reconcile
The funds arrive in your bank account, ready to reconcile.