Before you start
Adfin direct debits work for UK customers with:
A GBP-denominated bank account
Held with a bank participating in the UK Bacs scheme
If your customer's bank account doesn't meet these criteria, they can still pay via one-time methods like card or pay by bank.
1. What is a direct debit mandate?
A direct debit mandate is an authorisation that lets Adfin collect payments directly from a customer's bank account through the Bacs direct debit system. It's a safe, regulated way to manage payments between you and your customers.
How it works
Initiation: Adfin sends a mandate request to your customer.
Authorisation: Your customer signs by providing their account name, sort code, and account number.
Bank verification: Their bank verifies the details and activates the mandate (usually within three working days).
Active: Once the mandate is Active, payments are collected automatically where Auto Collect is used. No further action is needed from your customer.
Flexible by default
Adfin direct debit mandates aren't tied to specific collection dates or fixed amounts. We use the amount and due date from each invoice or payment link you create.
Indefinite validity
Mandates stay valid until your customer cancels them directly with their bank.
Bacs compliance
Your customer must be notified at least three working days before each payment date and amount. Adfin handles this notification automatically. The advance collection notice is a Bacs requirement and can't be turned off.
2. Sending direct debit mandates
To send a direct debit mandate to a single customer, navigate to the Customers view, select the customer, and click "Send direct debit mandate." This will prompt a confirmation pop-up, and the mandate will be sent to the customer. It is optional, but you can provide a custom message if you would like.
Here's the guide to send direct debit mandates in bulk. This will send a direct debit mandate request by email to all of the selected customers.
When you send an invoice to a customer who doesn't yet have an active mandate, Adfin automatically includes a direct debit mandate link with it, so they can set up the mandate and pay in one go.
3. Understanding mandate statuses
No mandate: A mandate has not yet been sent to the customer, or the previous mandate was cancelled.
Awaiting signature: The mandate has been sent, but the customer hasn't yet completed it. We will automatically remind the customer to authorise the mandate according to your customer agent's Auto Collect settings.
Active: The mandate is signed and payments will be scheduled automatically. Please note, for newly signed mandates there will be a three business day delay until the first payment can be collected.
Migrating: Your customer has switched bank accounts, usually through their bank's Current Account Switch Service. Adfin is waiting for the new mandate and reconnects it automatically when it arrives. Nothing needed from you.
Client already signed a mandate but received a new request?
This usually means there are duplicate customer records in Adfin. The existing mandate is linked to one record, but the invoice was raised against a different one. Head to the Customers view, search for the customer, and use the Merge feature to combine the records. Once merged, the existing mandate will apply to all their invoices.
4. Invoicing customers on direct debit
If your customer has signed a direct debit mandate and it is 'Active', invoices are automatically scheduled for direct debit collection on the due date, provided the customer's agent uses Auto Collect or a customer or invoice-level override sets it (occasionally collection may be later than the due date - see direct debit timings below). To learn more about agents and overrides, see How to get paid with customer agents.
Via Adfin: If you manually upload an invoice, Adfin will automatically match the invoice to the corresponding customer and schedule the direct debit. When sending the invoice you must choose Auto Collect as the collection method.
Via your Accounting Software: Any approved Auto Collect invoices will follow the same process, scheduling the payment to be collected on the invoice due date.
5. Direct debit timings
Everything works back from the invoice due date: that's the day we aim to debit your customer's account.
3 working days before the due date (15:00 UK time): your customer receives their advance notice email telling them the amount and date. The invoice still shows as Scheduled.
2 working days before the due date (16:00 UK time): we submit the collection to the bank, and the invoice moves from Scheduled to Submitted.
Due date: the money leaves your customer's account.
2 working days after the due date: the funds settle and are paid out to your bank account.
If the due date falls on a weekend or bank holiday, the collection moves to the next working day, so the debit may appear on your customer's account a day or two after the date on the invoice. Bank holidays also push the payout back a day.
Raise direct debit invoices at least 4 working days before the due date, ideally 1 to 2 weeks out. With less lead time, Adfin still gives your customer the full advance notice, so the debit lands a few working days after the due date rather than on it.
Understanding "Submitted" status
Once a payment moves to Submitted (two working days before collection), it has been sent to the banking network and can't be cancelled or reversed. To stop a payment, act before it reaches Submitted. After that, wait for it to settle and process a refund.
A brand-new mandate needs to be confirmed by your customer's bank before the first collection, which typically takes 3 working days.
If a payment fails, we'll notify you and your customer and retry, up to 3 times by default, every 7 working days. Each retry follows the same cycle: submitted 2 working days before the new collection date. If the retries run out, we automatically send your customer a payment link so they can pay another way.
6. Syncing payments to your accounting software
If you raise the invoice using Xero or QuickBooks:
If you use Xero, Adfin marks each invoice as paid when the payment is submitted, and reverses it automatically if the payment fails. If you use QuickBooks, the invoice is marked paid only once the payment has been successfully collected.
When Adfin makes a payout, we will initiate a ledger transfer on Xero / QuickBooks between Adfin bank and your external bank.
This transfer amount will be for all invoices collected in a given day.
You should reconcile the payout received from Adfin on your bank statement to the transfer between Adfin bank and your external bank ledger on Xero.
You will see details of the payout for a given day for cards and direct debit in the Transactions view.
7. Failed payments and cancelled mandates
Failed payments
If a payment fails (e.g. insufficient funds on customer account), we will notify you and the customer and then retry the payment up to 3 times by default, every 7 working days. If the retries also fail, we'll automatically send your customer a payment link so they can pay another way.
For what happens after a failed collection, see A direct debit payment failed.
Cancelled mandates
If a mandate is cancelled we will send you an email notifying you of this. If you wish to send a new mandate then you can do this again from the Customers view.
To cancel an active mandate, go to Customers, select the customer, and choose More actions then Cancel direct debit mandate. If a payment is currently being processed, Adfin queues the cancellation and applies it automatically once that payment completes or fails.
For what to expect when a mandate is cancelled, see My customer cancelled their direct debit mandate.
Cancelling a mandate while a payment is in flight
You can cancel a mandate even while a payment is being processed. Adfin queues the cancellation and applies it once the in-flight payment completes or fails. While the cancellation is queued, no new payments can be scheduled on the mandate, any in-flight payments continue as normal, and the queued cancellation can't be undone. If a payment was collected in error, refund your customer directly from your bank once it settles, then void the invoice in Adfin.
8. Switching your direct debits from another provider
See our direct debit switching guide here.
Common questions
Is there a paper or PDF mandate form? No. Adfin mandates are signed digitally so there's no paper form to print or post. If your customer wants to sign up in person, open your reusable direct debit mandate link together and enter their details with them present. If they'd rather not do it digitally at all, you can complete the reusable mandate link on their behalf without them present, as long as you have their explicit written permission. It's important to capture their details and written permission on a direct debit form or template with your own branding. We aren't able to create this form for you, but as long as it captures the same details as our online form it works fine:
Account holder name
Sort code and account number
Email address
Billing address
Signature confirmation that they're authorised to set up direct debits on the account, and that payments will be collected on your behalf by Adfin
Please ensure you send us any paper signed mandate forms via live chat (the Get Help button in the bottom left of the Adfin console) so that we have them on record.
How do I update a customer's bank details on an active mandate? You can't edit the bank details on an active mandate. If your customer switched accounts using the Current Account Switch Service, the details carry over automatically and the mandate shows as Migrating, so there's nothing to do. Otherwise, cancel the mandate and send a fresh mandate request so your customer can enter their new details. A fresh mandate is often the quickest route.
The invoice due date passed before the mandate became Active. Will it still collect? Yes. As soon as the mandate is Active, Adfin picks the invoice up and collects it as soon as it can, provided the customer agent and any overrides for that customer allow Auto Collect. Nothing is skipped because the due date has passed.
My customer says they've been asked to set up a direct debit more than once. Usually these are reminder emails for the same request. Until a mandate is signed, Adfin sends a series of reminders, and each one contains the same link. Your customer only needs to sign once, from any of the emails. If your customer has already signed and is still being asked, check for a duplicate customer record. Each record can carry its own mandate request, so the mandate may be on one record while the request emails come from the other. Merge the duplicates and the extra request goes away. See How to merge duplicate customers.