Can I collect direct debits via a payment service provider?
JustOn Cash Management can collect direct debits in two ways: via your own bank, using SEPA Direct Debit orders sent via EBICS, or via an integrated payment service provider (PSP). This article explains the second way – for example, to collect Bacs Direct Debit in the United Kingdom, which is not covered by SEPA.
Summary
If your PSP offers the direct debit method and you have enabled it in your PSP account, JustOn Cash Management can collect direct debits via an integrated payment service provider (PSP). JustOn Cash Management controls the access to the PSP: it publishes the payment page, can (optionally) store a payment token for future use, and triggers subsequent collections via the payment run. Everything else – the direct debit mandate itself, the direct debit processing with the banks, and the scheme-specific obligations – is the responsibility of the PSP.
Which direct debit methods can I use?
Any payment method that is enabled in your account at the payment service provider is available on the payment page. JustOn Cash Management does not restrict the methods. This includes direct debit methods like SEPA Direct Debit or Bacs Direct Debit, provided that your PSP offers them.
Which methods your PSP supports, in which countries and currencies, and under which conditions, depends on the PSP and your contract with it. Contact your PSP for details.
Who manages the mandate?
The payment service provider manages the mandate. A direct debit requires a mandate, that is, the debtor's authorization to collect money from their account. When collecting via a PSP, the mandate is created, stored and managed at the PSP.
JustOn Cash Management only stores a reference to it:
- The buyer pays the first amount via the payment page and selects the direct debit method. With this first payment, the buyer grants the mandate to the PSP.
- If payment token storage is enabled for the payment provider and the buyer agrees to it, the PSP returns a token that provides future access.
- JustOn Cash Management saves this token as a payment instrument of the type
Online Paymentfor the buyer's account. The payment instrument is confirmed once the PSP has reported the first payment as successful.
From then on, the payment run can use this payment instrument to collect subsequent amounts – for example, recurring invoices – without the buyer having to interact again. Eligible entries and payment instruments are described in Payment Provider Integration.
Info
Without token storage, every collection requires the buyer to pay via the payment page. Recurring collections via the payment run are not possible in this case.
What is different from SEPA Direct Debit via EBICS?
| Aspect | SEPA Direct Debit via EBICS | Direct debit via payment service provider |
|---|---|---|
| Supported schemes and currencies | SEPA Direct Debit Core and B2B, in euro | any direct debit method your PSP offers, like Bacs Direct Debit in GBP |
| Mandate | held in JustOn Cash Management, as payment instrument of the type SEPA Mandate with mandate reference and IBAN |
held at the PSP; JustOn Cash Management stores a token as payment instrument of the type Online Payment |
| Mandate creation | you obtain the mandate from the debtor and enter it | the buyer grants it with the first payment via the payment page |
| Collection | SEPA order job or SEPA payment run, sending SEPA orders to your bank | PSP payment run, sending payment requests to the PSP |
| Status feedback | bank statements (CAMT.053), matched via the end-to-end ID | notifications from the PSP (webhooks) |
| Chargebacks | returned debits on the bank statement | reported by the PSP with the original payment |
| Prerequisites | EBICS access to your bank, SEPA creditor identifier | PSP contract with the direct debit method enabled; scheme-specific prerequisites are covered by the PSP |
For details on the EBICS-based approach, see SEPA Direct Debit.
How long does a collection take?
Direct debits take longer than card payments. Depending on the scheme, the PSP may need several working days to collect the money. Until the PSP reports the result, the payment keeps the status Pending, and the entry item keeps its Expected Amount. This prevents the entry from being collected again. Once the PSP reports the successful collection, JustOn Cash Management sets the payment Collected and settles the entry (see Payment Workflow via Payment Provider).
What happens on a chargeback?
Depending on the scheme, debtors can have a direct debit reversed – for example, under the Direct Debit Guarantee for Bacs or within eight weeks under SEPA Direct Debit Core. The PSP reports the reversal to JustOn Cash Management with the original payment. JustOn Cash Management then updates the payment and the related entries:
- It reduces the
Open Amountand theCollected Amountof the payment by the charged-back amount and sets the payment'sStatus DetailstoFirstChargeback. If the complete amount has been charged back, the payment status changes toFailed. - It withdraws the charged-back amount from the related entries. As a result, the entries are
Openagain.
Chargebacks do not create refund records. Refunds via the PSP are a separate process, see Refund via Payment Provider.
Who notifies the debtor before the collection?
Direct debit schemes require the creditor to inform the debtor about the amount and date of a collection in advance. JustOn Cash Management does not send such advance notices.
If you use JustOn Cash Management with JustOn Billing & Invoice Management, the invoice serves this purpose: it is created with the invoice run, sent to the customer, and states that the amount will be collected by direct debit. Ask your PSP whether it sends additional notifications to the debtor and what the scheme requires in detail.
Example: Bacs Direct Debit
Bacs Direct Debit is the direct debit scheme of the United Kingdom, in GBP. It is not part of SEPA, so JustOn Cash Management cannot collect it via EBICS (see Which banks and countries does JustOn Cash Management support?). Via a PSP that offers Bacs Direct Debit, like Mollie, you can collect it as described above.
Make sure that your entries are in GBP. Ideally, GBP is the corporate currency of your Salesforce org, so that entries, payments and all other records use it. In a multi-currency org, GBP must be active, and the entries must have the currency GBP. For details, see Currency Handling in Cash Management.