Direct Debit Payment Scenarios Explained

Cheqdin's direct debit offers a lot of flexibility to you and your customers when it comes to payment collection.

What you should know? 

1. When you send an invoice to a direct debit customer, the amount shown in the invoice will be automatically debited from their account on the invoice due date.

2. If in case a customer doesn't want the entire invoice amount to be debited from his account, because they'd like to pay part of the amount by, say, childcare vouchers, they can change the amount by clicking on the 'Pay Now' link in the email accompanying the invoice. We call this the 'manual direct debit' option.

3. If a customer chooses to make a 'manual direct debit' for an invoice, it must be done before the invoice due date. 

4. Upon receiving an invoice, if the bill payer does not take any action (to make a manual direct debit payment), the 'current invoice amount' or the 'invoice payable amount' (whichever is lesser) will be automatically debited on the due date. 

To give you an example of how this works, here are three payment scenarios for a billpayer: 

Scenario 1:  Customers with an unpaid balance

Brought forward balance: £50

Current invoice: £30

Payable Amount: £80

Auto Direct Debit: £30

Manual Direct Debit: Any amount

Scenario 2: Customers without an outstanding balance

Brough forward balance: £0

Current invoice: £50

Payable Amount: £50

Auto Direct Debit: £50

Manual Direct Debit: Any amount

Scenario 3:  Customers with a credit balance

Brough forward balance: -£120 (In Credit) 

Current invoice: £50

Payable Amount:  -£70

Auto Direct Debit: £0

Manual Direct Debit: £0