Learn about pricing and settlement services for BACS Direct Debit on adyen.com.
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.
Both one-off and recurring payments are supported by BACS. Due to the risk of chargebacks, we don't recommend using BACS Direct Debit for one-off payments or the sale of physical goods.
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.
Your company name is forwarded to the shopper's bank but it may not show up on the shopper's statement. Instead, the shopper may see Adyen with Service User Number 182827 on their statement.
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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.
Your name and signature