Unlike card transactions, bank debit payments are not processed instantly.
Each country (or in some cases, region) operates its own bank debit scheme with its own rules and regulations. These rules and regulations govern things like advance payment notice requirements, payment request submission processes, failure notice periods, and more.
Mandates
The first step is to invite the customer to set up the Direct Debit mandate. This can be done in many different ways, including via email or direct link.
The mandate submission works slightly differently depending on the scheme. In most schemes, the mandates are submitted to the bank once they are created and the bank confirms the set up of the mandate.
In some schemes, for example in the SEPA scheme, the mandate will only be submitted to the bank once a payment has been created against that mandate. We then send both the mandate and first payment requests together. If the bank tells us that the payment has failed, then the mandate will not be set up, and can be sent again with the next payment request.
Payments
Each payment in GoCardless goes through a multi-stage journey.
If there are no obstacles to collect that payment, this journey is straightforward and you will see the following payment statuses:
Pending submission >> Submitted >> Confirmed >> Paid out
Pending submission
The pending submission status indicates that the payment has been created on the dashboard. At this stage the payment can still be cancelled, if needed.
Submitted
The submitted status indicates that the payment has been sent to the bank to be processed. At this stage the payment can no longer be cancelled.
Confirmed
The confirmed status indicates that the payment has been successfully collected from the customers bank account.
Paid Out
The paid out status indicates that the payment has been paid out to you.
In addition to the above, there are other payment statuses that a payment can have:
Failed
The failed status indicates that the payment has not been successfully collected from the customers bank account.
Pending customer approval
The pending customer approval status indicates that the payment has not yet been approved for collection. This could be due to a dual signature mandate not yet being set up or a payment on a restricted mandate not being approved.
Cancelled
The cancelled status indicates that the payment has been cancelled and will no longer be collected.
Late failure
The late failure status indicates that a payment, which was previously in the confirmed status, has failed. This happens when the customer's bank sends us a delayed report to notify us that the payment was not successfully collected.
Chargeback
The chargeback status indicates that a payment has been charged back by a customer under the Direct Debit guarantee.