Introduction to Same Day Settlement
What is Same Day Settlement?
Same Day Settlement is our new payment feature to speed up your direct debit payments.
Same Day Settlement reduces your time to get paid by 2 business days, by paying out the same day your customer is charged.
Please note: This is only available to customers who meet a certain criteria, and process UK Bacs direct debits.
How does Same Day Settlement work?
When using Same Day Settlement, GoCardless pays out Direct Debit payments on the day your customer is charged, as opposed to standard Direct Debit where there is an additional 2 day waiting period after customers' accounts are charged. By paying out on charge day, we are able to speed up the payments cycle by 2 days.
How do I set up Same Day Settlement?
You can get in touch with our sales team to discuss your setup.
Is there anything else I need to know?
Yes. It is important to know that with Same Day Settlement, all failed payments will become ‘late failures’. Receiving funds on the same day as customers are charged requires all payments to be marked as confirmed on charge date.
UK Banks provide the majority of failure reports a day after the charge date. Meaning failed payments with SDS will be marked as ‘failed’ after they’ve initially been confirmed and paid out.
GoCardless will then complete a ‘late failure settlement’ to recoup the failed payment value from your next payout.
Will that impact my expected payout value?
Yes. Expected payout value may be lower.
If ‘late failure settlements’ are deducted from a payout, you will receive less funds than the amount being collected that day.
If the value of ‘late failure settlements’ is higher than the amount collected that day, your account will (temporarily) fall into a negative balance.
GoCardless will commence payouts again once enough funds are collected to move back into a positive balance.
Are there any considerations for reconciliation?
Yes. ‘Late failure settlements’ will show as debits on a payout and will need to be factored in during reconciliation processes.