BACS Direct Debit

Bankers' Automated Clearing Services (BACS) Direct Debit is a widely used payment method in the United Kingdom. The scheme is owned by Bacs Payment Schemes Limited, which have very strict rules to protect shoppers. Shoppers are further protected by the Direct Debit Guarantee.

When making a BACS Direct Debit payment, the shopper needs to enter their name, bank account number, sort code, and email address. Before they continue to pay, the shopper confirms that the account is in their name and that they agree with the payment. After the payment is received, they are given the option to download a copy of the Direct Debit Instruction (DDI) or 'mandate'. Adyen submits the DDI and the payment to BACS for processing. Taking the BACS processing cycle into account, it can take four to six days before a payment is cleared and settled.

Payment type	Payment flow	Countries	Currencies	Recurring	Refunds	Partial refunds	Multiple partial refunds	Separate captures	Partial captures	Multiple partial captures	Chargebacks
Direct Debit	Direct	GB	GBP

Advance notice

We strongly recommend that you send advance notice to shoppers before you process BACS Direct Debit payments. According to scheme rules, shoppers may file a chargeback when they do not receive a notification 10 days before a charge.

Below is a template email we recommend that you send to shoppers 8 working days before capturing a payment in our platform. Shoppers will see the charge 2 to 3 working days later, in accordance with the BACS Direct Debit payment cycle.

Advance notice email template

From: Your company email address
To: Shopper email address
Subject: ADVANCE NOTICE OF DIRECT DEBIT COLLECTION

This is for informational purposes only. The below amount due will be collected by direct debit from your bank account on or after: Settlement date: (dd/mm/yy).

Please note you will see the “ADYEN RE Your company name” on your bank statement.

Shopper Account Name: Shopper name

Shopper Reference: Your shopper reference number

Direct Debit Amount Due: Payment amount

If you have any queries about this notification please contact Your company name and telephone number.

Best regards,

Your name and signature

Chargebacks

The BACS scheme and the Direct Debit Guarantee give significant consumer rights to the shopper, such as:

• An immediate money back guarantee if an error is made in the payment of a direct debit.
• The right to cancel the DDI at any time.

Unpaid direct debits are booked as chargebacks. A chargeback can indicate that:

• The DDI was changed or cancelled.
• The shopper disputes the due date, amount, or frequency of the direct debit.
• The shopper has not paid the direct debit.
• There were insufficient funds in the shopper's bank account.

For more information on the chargeback process, refer to Dispute management.

Chargeback webhook

A webhook for a chargeback has:

• pspReference: Adyen's unique reference associated with the payment request.
• eventCode: CHARGEBACK.
• reason: Reason for the chargeback.
• success: true.

Here is an example of a webhook for a chargeback due to insufficient funds in the shopper's bank account.

{
   "live":"false",
   "notificationItems":[
      {
         "NotificationRequestItem":{
            "additionalData":{
               "directdebit_GB.mandateId":"424544",
               "directdebit_GB.serviceUserNumber":"298288",
               "directdebit_GB.serviceUserName":"Adyen Payments",
               "directdebit_GB.sequenceType":"OneOff",
               "directdebit_GB.dateOfSignature":"2016-10-21"
            },
            "amount":{
               "currency":"",
               "value":1000
            },
            "eventCode":"CHARGEBACK",
            "eventDate":"2016-10-21T11:34:15+02:00",
            "merchantAccountCode":"YOUR_MERCHANT_ACCOUNT",
            "merchantReference":"YOUR_PAYMENT_REFERENCE",
            "paymentMethod":"",
            "pspReference":"9914770424540842",
            "reason":"Insufficient funds",
            "success":"true"
         }
      }
   ]
}

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