Direct Debit and ACH Explained
Cards are not the only way to take recurring payments. Bank-based methods such as Direct Debit in the UK and ACH in the US pull money straight from a customer's account, often at much lower cost.
This article explains how they work and when they make sense.
How They Work
Instead of charging a card, the customer authorises you to collect directly from their bank account. The funds are pulled on each due date under a mandate they have agreed.
Strengths and Weaknesses
- Lower fees than cards, especially on large amounts.
- No card expiry to break recurring payments.
- Slower to confirm than a card charge.
- Reversible by the customer within set rules.
Where They Fit
Direct Debit suits regular, predictable bills such as memberships and utilities. We often pair it with cards so customers can choose, capturing the cost savings where they apply.
If you need a hand with any of this, your Progressive Robot delivery team is ready to help. Raise a ticket from the Support area of your client portal or speak to your account manager and we will guide you through the next steps.