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Learn more about GoCardless Direct Debit for QuickBooks

Get answers to frequently asked questions about GoCardless for QuickBooks Online.

GoCardless makes it easy to automatically collect payments from customers through scheduled Direct Debit. To use Direct Debit, set up a GoCardless account first. Sign up directly with GoCardless or through QuickBooks Online during setup.

Frequently asked questions

Direct Debit is a payment method that allows you to debit payment directly from your customer's bank account on the invoice due date.

Watch this video to learn more.

Create an invoice as you usually do. Then select the Use Direct Debit payment option. Once the invoice is due, the Direct Debit process starts. You'll receive a deposit for the invoice open balance after approximately 5 working days.

Watch this video to learn more.

Direct Debit starts processing on the invoice's due date. Shortly after, you should see your invoice marked as Paid and the invoice payment is now on your Undeposited Funds account.
Payments can fail if a customer has changed their bank account details, declined the Direct Debit request, or has insufficient funds. Then, the invoice status reverts to Open and the payment is voided, if it has not yet been settled.
The invoice is marked as Paid on the Due Date that you have selected on the invoice. Sometimes, it takes about 24 hours before processing starts.
This is the date that we start the Direct Debit payment process. The customer is given 3-day notice from GoCardless of the upcoming charges. During the 3-day period, the customer has the option to cancel the Direct Debit. We recommend that you set your Due Date accordingly because it takes approximately 5 working days for funds to be deposited into your bank after the date.
The Direct Debit will start on the next working day.
The payment is referenced as from GC C1.

The payment reference comes from the name of the creditor that is set up in the GoCardless dashboard when your customers add their bank account details. It appears as GOCARDLESS LTD REF (Payment reference) - (Mandate reference).

Note: With different banks, the payment reference might look a bit different.

You can collect up to £5000 of invoice payment via Direct Debit. If your invoice is higher than £5000, your Direct Debit payment will fail unless you raise the maximum limit. To raise the maximum limit that you can collect, contact GoCardless.

Usually payments using GoCardless Direct Debit take a total of approximately 5 working days.

Day 0: Direct Debit process starts (Due date)

On this day, the payment is created in QuickBooks Online and GoCardless.

  • An email is sent to your customer explaining the charge.
  • The invoice is marked as PAID.
  • The payment is categorised under Undeposited Funds in QuickBooks Online.

Day 3: Customer's bank account is debited

Three working days after you create the payment invoice, the payment is debited from your customer's bank account (unless the customer asked their bank cancel or they don't have enough money in their bank account).

Day 5: Payment is in your bank account

Approximately two working days after your customer's account is debited, the funds are deposited into your bank account.

A deposit is created in QuickBooks Online. It matches the amount paid out by GoCardless to your bank account and includes information about fees charged.

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