Direct Debit (BACs, BECs, ACH and SEPA)

Offering customers more payment options can accelerate invoice processing, improving cash flow. Even when chasing older debts, you can use alternative payment methods to provide greater flexibility to your customer base.

Connect your Stripe account

1. Go to Manage > Payment Portal.
2. In Payment Methods, click Connect with Stripe.
3. Login to Stripe.
4. Click Authorise access to this account.
5. Enable the relevant Direct Debit method
   1. BACs for GBP invoices
   2. ACH for USD invoices
   3. SEPA for EUR invoices
   4. BECs for AUD invoices
      1. To use BECs, you must enable the payment method in your Stripe account as this is switched off by default. To do this follow this link and turn on the BECs option (only available in Australian Stripe accounts). 

1. If you use Xero or Quickbooks, select your payment account for each payment method so that Chaser knows where to register the payments in your accounting system (this step is not required for other integrations)

Get authorization from your customer

Once enabled, your customer will be able to set up their direct debit from within the payment portal with the following steps:

1. Select at least one outstanding invoice.
2. Click Pay and set up Direct Debit, in the summary.
3. Enter all required information:
   a. Personal details: Email, name and address.
   b. Account details: Account number and sort code
4. Review summary of mandate and click confirm. 
   
   

Once your customer has set up a direct debit:

• Future payments will be taken automatically on the selected invoices’ due date.
• Your customer will be sent a reminder of each payment before each scheduled payment, as well as a confirmation email when the payment is complete.

Direct Debit payment schedule 

Invoice payments via Direct Debit are scheduled on the invoices' due dates, except those selected explicitly during setup.

Selective payment collection

Direct Debit payments only cover invoices selected during setup and new invoices with future due dates. 

Processing time

The first payment with a new mandate can take up to 6 days, and subsequent payments take up to 3 days.

Chasing and pending payments

Chaser pauses chasing once a Direct Debit payment is initiated, and the invoice status shows as 

Pending Debit.

Failed payment handling

Failed payments trigger notifications, but chasing will not resume automatically. Manual intervention is required.

Payment confirmation

For Xero and QuickBooks online users, Chaser automatically marks invoices as paid. Others require manual marking.

Removal of Direct Debit

Automatic payments cease until a new eligible payment account is connected.

Payment plans

Invoice instalments cannot be paid by direct debit.

Cancel Direct Debit authorization.

Cancellation can be done through the customer's bank or by cancelling the mandate in the Stripe account.

Disputes

• Payments: BACS Direct Debit disputes are final and require direct communication with the customer to resolve them.
• Invoices: Disputed invoices stop Direct Debit payments until resolved.
  
  

Fee Structure

Chaser charges an additional fee of up to 0.5% per transaction, capped at £2, on top of regular payment platform fees.