What is a direct debit mandate?
A direct debit mandate is an authorisation that allows Adfin to collect payments directly from a customer’s bank account through the Bacs direct debit system.
It is a safe, controlled, and regulated method of managing payments between businesses and their customers.
How it works
Here’s how the direct debit mandate process typically works in Adfin:
Initiation – Adfin sends a direct debit mandate request to your customer.
Authorisation – The customer completes the form by providing their account name, sort code, and account number.
Bank verification – Once the details are verified, Adfin coordinates with the customer’s bank to activate the mandate.
Active status – When the customers direct debit status is shown as Active in Adfin, payments can be collected automatically for any invoices you raise in the app.
Mandates remain valid indefinitely unless cancelled by the customer directly with their bank. The type of direct debit mandate set up through Adfin is flexible, meaning it is not limited to specific collection dates or fixed amounts - we simply use the amount and due date from any invoices or payment links you create.
The only requirement is that your customer must be notified at least three working days in advance of the payment date and amount to be collected, which Adfin handles automatically.
Purpose of direct debit mandates in Adfin
Direct debit mandates in Adfin serve one key purpose:
Payment collection – Mandates enable the automatic collection of payments from your customer’s bank account once their mandate is Active. This streamlines the payment process and ensures funds are collected promptly, as no further action is required from your customers after they have authorised their direct debit mandate.
Summary
Direct debit mandates are a core part of how Adfin manages payments. They remove the need for manual payment handling, providing a seamless and automated solution for collecting customer payments.
Mandates remain active until cancelled, offering a reliable, long-term method for managing recurring payments efficiently.