Direct Debit Payments - Overview
Direct Debit Payments allows your customers to pay their invoices directly via their bank account. Once your customer approves the direct debit payment, their bank account will be automatically charged on every renewal. Usually, they are processed via financial networks like the ACH (Automated Clearing House) in US, Bacs in the UK, SEPA in Europe.
Zoho Subscriptions also provides option for direct debit payments in US, Canada and United Kingdom.
Points to Note
- It is advised to enable direct debit payments only for the customers that you know and trust. Because, direct debit payments can be initiated even if the customer has insufficient funds in the bank account and hence the transaction may end up failing. This leaves room for fraudulent transactions in case of new users, especially because of the longer authorization and transfer process than card payments.
- Zoho Subscriptions does not support direct debit as a payment method option on the public hosted payment pages. You can enable direct debit for the customers in Customers module.
- Unlike card payments, where authorization and fund transfer takes place almost immediately, the authorization and fund transfer can take anywhere from 3-15 days depending on the gateway.