Introduction to Pre-Authorized Debit with GoCardless

An introduction to Pre-Authorized Debit and GoCardless for Sage Accounting.

What is a Pre-Authorized Debit?

Pre-Authorized Debit lets you take payments automatically from your customer's bank accounts when due. Customers can set this up by filling out an online Pre-Authorized Debit form.

A Pre-Authorized Debit is unique because:

• Bank-to-bank payment method: No card networks involved, making it cheaper
• Pull-based system: Pull funds when a payment is due, instead of waiting for the customer

We notify paying customers before taking payment and securely collect details using a GoCardless-hosted payments page. For more information, visit gocardless.com.

What is the Pre-Authorized Debit Guarantee?

The Pre-Authorized Debit Guarantee protects customers in the Pre-Authorized Debit scheme. The guarantee covers payments made by mistake or fraud. It protects customers in 3 ways:

• Notify customers before each payment
• Customers get a full refund for any payment taken in error
• Customers can cancel a Pre-Authorized Debit anytime by contacting their bank

What are Pre-Authorized Debit Mandates?

Pre-Authorized Debit Mandates protect all payments. They allow you to collect future payments from your customer. You can collect any amount at any time, but you must notify your customer before each payment.

When to use Pre-Authorized Debit

Pre-Authorized Debit payments are good for:

• Regular payments, such as subscriptions or regular donations
• Customers with an ongoing relationship, such as account customers
• Invoicing for services, such as accountancy and tax advice

Pre-Authorized Debit payments aren't so good for:

• Transactions needing instant clearing, such as e-commerce
• High-value, one-off payments for liquid goods, such as gold bullion
• Transactions are likely to experience chargebacks, such as gambling

Introduction to GoCardless

GoCardless is a global Pre-Authorized Debit provider, serving over 85,000 businesses. They process transactions for clients ranging from small businesses to household names, including Sage. Find out more at gocardless.com.

How does GoCardless integrate with Sage Accounting?

See How to request Pre-Authorized Debit payments with Go Cardless.

Pricing

For details on pricing, visit the pricing plans at gocardless.com.