Direct Debits are currently supported for GBP budgets only.
How Direct Debits work
When a Direct Debit is set up, the originator (such as a utility company or subscription service) is authorised to request payments from your budget. Each time a payment is due, the originator submits a payment request through the BACS (Bankers’ Automated Clearing Services) network. The Direct Debit lifecycle typically follows these steps:- Mandate creation - A Direct Debit mandate is created, either electronically or from a signed paper form (known as a paper mandate)
- Payment requests - The originator submits payment requests when payments are due
- Processing - Payment requests are processed through BACS
- Settlement - Funds are debited from your budget and credited to the originator
Payment requests are typically processed with a T+1 settlement cycle. You’ll receive a webhook notification on day 1, allowing you to take action before funds are debited on day 2.
Direct Debit statuses
A Direct Debit mandate can have one of the following statuses:| Status | Description |
|---|---|
ACTIVE | The mandate is active and can receive payment requests |
CANCELLED | The mandate has been cancelled and can no longer receive payment requests |
Payment request statuses
Each payment request associated with a Direct Debit can have one of the following statuses:| Status | Description |
|---|---|
PENDING | The payment request has been received but not yet processed |
PAID | The payment request has been successfully processed and funds have been debited |
FAILED | The payment request could not be processed (e.g., due to insufficient funds) |