Your customers can pay Adfin invoices and payment requests using pay by bank, cards and direct debit. Since these payment methods all use different payment schemes, they have different payout settlement times.
You can track payout activity using the Payouts dashboard. Each payout represents a payout from Adfin to your bank account.
Summary
Payment method | Payout settlement time | Payout type | Reconciliation with Xero and Quickbooks | Chargebacks |
Pay by bank | Instant | Each payment is paid separately into your bank account | Reconcile per customer payment | No chargebacks |
Cards (including Apple Pay and Google Pay) | 2 week days after the payment is made by your customer. | Payments on a given day are batched together and you receive a single payout from Adfin for all payment into your bank account | Reconcile per batch payout | Chargebacks that can be defended |
Direct debit | 4 week days after the payment is debited from your customer’s account
If the payout is scheduled on a bank holiday, it will reach your bank on the next working day. | Payments on a given day are batched together and you receive a single payout from Adfin for all payment into your bank account | Reconcile per batch payout | Chargebacks that cannot be defended |
Pay by Bank
Pay by Bank
Settlement
Pay by bank payments are settled directly from your customer’s bank account to the bank account you provided us with during onboarding.
Funds will typically appear in your account instantly after the customer has initiated the payment, but can take up to 2 hours.
There may be occasions where, for higher value payments, your bank performs risk and AML checks on the incoming payment. This can add up to 48 hours to settlement or result in funds being returned to the customer.
Payment status explanation:
Paid: funds have been sent from your customer’s bank account. This updates in real-time after your customer completes the payment.
Tracking and reconciliation
If you raise the invoice using Xero or Quickbooks:
Adfin will automatically mark each invoice as paid when the funds are sent from your customer’s bank account.
Adfin will immediately initiate a ledger transfer between Adfin bank and your external bank on Xero for each individual invoice payment.
You should reconcile each individual invoice payment that is received in your bank account with the transfer from Adfin bank to your external bank on Xero.
Each Pay by Bank payment will appear as an individual payout on the Payout dashboard.
Chargebacks and refunds
There are no chargebacks for pay by bank payments.
If you wish to refund your customer, you should do this directly from your bank and void the invoice.
Cards (including Apple Pay and Google Pay)
Cards (including Apple Pay and Google Pay)
Settlement
Card payments made on a given day (00:00 - 23.59) are settled in bulk to Adfin 2 week days later, Adfin then immediately initiates a payout to the bank account you provided us with during onboarding. If the payout takes place on a bank holiday, then it will reach your bank on the next working day.
Please note - your payout for direct debit payments and cards on any single day will be combined into a single payout from Adfin.
The payout includes all payments made to you in a given day. For example, if 5 invoices were paid using cards on Monday with a total value of £500, you would receive a single payout from Adfin on Wednesday morning for £500.
Funds are typically made available in your bank at around 7.30am UK time - the exact time will depend on your bank account provider.
Invoice payment status explanation:
Paid: the card payment has been authorised and captured, guaranteeing that funds will be settled to you (2 working days later). This updates in real-time after your customer completes the payment.
Tracking and reconciliation
If you raise the invoice using Xero or Quickbooks:
Adfin will mark each invoice as paid when the card payment has been authorised and captured (in real-time).
Balance will accrue in the Adfin bank ledger on Xero / Quickbooks until funds are paid out by Adfin (2 working days later).
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 paid 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 / Quickbooks.
You will see details of the payout for a given day for cards and direct debit in the Payout dashboard.
Chargebacks and refunds
Your customers can raise a chargeback on a card payment - if this happens, our support team will contact you and support you to defend or resolve the chargeback. Your customers have up to 120 days after the payment to raise a chargeback.
If you lose the chargeback we will debit the funds from your next available payout.
If you wish to refund your customer, you should do this directly from your bank and void the invoice.
Direct Debit
Direct Debit
Settlement
Direct debit payments are scheduled to be debited from your customer’s bank account on the due date of the invoice (or next available payment date - see full details below). Payments are settled to Adfin 4 week days after the due date. Adfin then immediately initiates a payout to the bank account you provided us with during onboarding.
Please note - your payout for direct debit payments and cards on any single day will be combined into a single payout from Adfin.
This payout will include all payments debited from your customers’ bank accounts using direct debit on a given day. For example, if 10 invoices were paid on Monday with a total value of £1,000, you would receive a single payout from Adfin on Friday morning for £1,000.
Funds are typically available in your bank at around 7.30am UK time - the exact time will depend on your bank account provider.
Invoice payment status explanation:
Scheduled: the invoice has a direct debit payment scheduled, the payment process has not yet been initiated. The invoice can still be voided.
Processing: the payment process has been initiated - please note, invoices that are scheduled will transition to processing at 16:00 UK time 2 working days prior to funds being debited from the customer’s bank account.
Paid: the payment is final and funds will be paid out
Direct debit timelines:
Where possible, we will always schedule a payment to be debited from your customer’s bank account on the invoice due date - this may be delayed if a mandate is not yet signed or we need more time to pre-notify the customer of the payment.
When a new mandate and an invoice are sent at the same time
Working day 0: customer signs mandates
Working day 3: mandate confirmed by customer’s bank and mandate issued
Working day 4 (16:00 UK time) : Customer notified of direct debit payment
Working day 5 (16:00 UK time): payment process initiated - invoice status transitions to processing
Working day 7: customer has funds debited from their bank account
Working day 10 (18:00 UK time): invoice status transitions to paid. Customer is notified of success.
Working day 11: funds are paid out to your bank account
For customers with an existing mandate:
Invoice is uploaded to Adfin and will have the status “scheduled”
Working day 0 (16:00 UK time) customer notified of direct debit payment - invoice still shows as Scheduled
Working day 1 (16:00 UK time): payment process initiated - invoice status transitions from Scheduled to Processing
Working day 3: customer has funds debited from their bank account
Working day 6 (18:00 UK time): Invoice status transitions to paid. Customer is notified of success.
Working day 7: funds are paid out to your bank account
If a payment fails, we will notify you and your customer and try the payment again. The process will start again from the working day 0 step above. We will automatically retry a failed payment twice on direct debit and then send a card payment link instead.
Tracking and reconciliation
If you raise the invoice using Xero or QuickBooks:
Adfin will mark each invoice as paid when the direct debit payment is final
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 Payout dashboard.
Chargebacks and refunds
Your customers can raise a chargeback on a direct debit payment - if this happens we will automatically cancel the customer’s mandate to prevent any further chargebacks and our support team will contact you.
There is no time limit for a customer to raise a chargeback and direct debit chargebacks cannot be defended - we will debit the funds for the chargeback from your next available payout.
If you wish to refund your customer, you should do this directly from your bank and void the invoice.