If your business regularly sends bills to clients, offers payment plans or has a subscription element to its product/service offering, using a dedicated direct debit solution provider can simplify the process. But with numerous providers available in the UK, how do you know which one your business should use? 

In this article, we outline the best direct debit companies for small businesses, comparing their costs, key features and benefits to help you work out which might suit your organisation.

How do direct debit companies work?

Direct debit companies enable businesses to provide quick, easy and secure ways for clients and customers to make regular, automatic payments on an ongoing basis, whether it’s for subscriptions, memberships or instalments or for regular contracted services.

These providers typically leverage Bacs network integration, APIs and cloud-based platforms to make recurring payments simple and accessible, even for small businesses without their own Bacs accreditation. 

Most solutions offer user-friendly online dashboards to manage payment schedules, monitor transactions, generate reports and gain insights into cash flow. And many also enable integrations with CRMs and accounting software, helping to support efficient invoicing, reconciliation and communications.

What is the difference between a direct debit company and a payment processor?

A direct debit company is a payment service provider (PSP) that specialises in managing recurring payments pulled directly from customers’ bank accounts, typically using the UK’s Bacs network. A ‘payment processor’ is typically a broader category of PSPs, as most payment processors handle a wide range of payment methods, such as card payments, bank transfers, point-of-sale (POS) and digital wallet transactions. 

Payment processors can also manage various stages of the payment lifecycle, including authorisation, routing, verification and settlement, while direct debit companies generally focus on recurring payment solutions. 

Why do businesses use direct debit providers?

Offering direct debit as a payment option has many benefits for merchants and customers alike. It can help ensure your business gets paid on time and manage cash flow, saving you time on administrative tasks and offering convenience for both sides. Additionally, direct debit providers allow you to collect payments in various countries and currencies.

Today’s providers have smart digital solutions that are easy to set up and use, making recurring payments much less of a headache than they used to be.

What to look for in a direct debit company

Numerous companies offer direct debit services for small businesses, so with many providers to choose from, how do you know which is right for your business?

There are several key factors to compare, such as:

• Fee structure and service costs
• Usability
• Experience and reputation
• Customer experience (including Trustpilot reviews and ratings)
• Security and compliance credentials
• Payment solution integration capabilities 
• Additional solutions and benefits
  

Importantly, scope out your key requirements, budget and priorities and seek a solution that best meets your needs.

Who are the best direct debit providers in the UK?

Below, we’ve outlined 7 of the best direct debit providers in the UK, which help businesses collect and process recurring payments, offering various features and benefits for small businesses:       

• GoCardless        
• Access PaySuite
• FastPay
• SmarterPay
• ClearDebit
• AccessPay     
• London & Zurich

Browse our overview below of these top direct debit companies for UK businesses, which may help you in your selection process and decision-making.

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Comparing the top direct debit companies for small businesses

1. GoCardless

Fast-growing UK fintech, GoCardless, is a popular modern payment solution for small businesses. It has a pay-as-you-go pricing model and enables automated recurring payments and direct debit processing, including easy integration with top accounting and invoicing systems.

Key features

• No set-up costs required
• Pay-as-you-go pricing
• Integrates with leading accounting software, such as QuickBooks and Xero
• One-off, recurring and invoice payment processing
• APIs for syncing with various platforms and open banking solutions

Benefits

• Quick and easy to get started
• Global bank payment network
• Modern, flexible and user-friendly software
• Wide integration possibilities
• Clear and simple pricing
• Time and cost savings – GoCardless claims to reduce recurring payment collection, management and reconciliation costs by up to 56%.

Suitability considerations

A great option for SMEs with SaaS/subscription models needing software that’s quick to set up, intuitive and easy to connect with other digital platforms. Also, ideal for those requiring global payment collection, as GoCardless supports over 30 countries, including the UK, various Eurozone regions, plus the US, Canada, New Zealand and Australia.

2. Access PaySuite 

Access PaySuite provides direct debit collection services as part of its comprehensive suite of payment solutions for businesses, trusted by over 5,000 private and public sector clients, including household names and UK councils.

Key features

• Real-time payment intelligence and insights
• ISO 27001 certified and fully Bacs- and FCA-compliant payment solutions 
• Ability to choose between a facilities management service or using your own Service User Number (SUN)
• Instantly change payment frequency
• Configurable dashboards and other customisation capabilities 

Benefits

• Clear, scalable costs with bespoke pricing available for the public sector
• Simplify direct debit collection with automation and flexible solutions
• Reduce operating costs while maintaining full control
• Optimise cash flow management and reduce seasonal fluctuations
• Increase retention and minimise failed payments

Suitability considerations

Access PaySuite’s direct debit solutions are designed for SMEs, enterprises and public sector organisations, offering peace of mind over compliance and fast and flexible payment collection.

3. FastPay

FastPay is a specialist direct debit company that provides facilities management and commercial bureau services to businesses, charities and partnerships, offering flexible payment collection and pricing models.

Key features

• Choose between managed and bureau service solutions
• Transparent and varied pricing options
• Easy integration and APIs to connect with popular software solutions like QuickBooks, Sage and Xero

Benefits

• Fast setup (in as little as 24 hours) and flexibility for different needs
• Options for pay-as-you-go or a flat monthly rate
• Managed service – efficient direct debit collection without needing your own SUN
• Bureau service – outsource direct debit processing without an initial outlay and ongoing support fees for Bacs software
• Extensive reporting and easy payment amount/date changes

Suitability considerations

FastPay is suited to various business types and sizes across industries, but especially those that require a good level of flexibility and scalability.

4. SmarterPay

SmarterPay is a direct debit and payment gateway specialist offering full support for Bacs and AUDDIS compliance and providing UK businesses with efficient recurring payment collection solutions.

Key features

• End-to-end direct debit processing and management 
• Bacs- and AUDDIS-compliant services
• Automatic payment data validation
• Extensive visibility and automated alerts
• Fully hosted and managed cloud-based service or on-premises solutions
• Easy payment gateway integrations and APIs for other platforms

Benefits

• Reduces time-consuming reconciliation tasks to minimise human errors
• Cost savings through efficient direct debit collection and management
• Validation prevents payment rejections and improves collection accuracy
• Funds are transferred directly into your account with no third parties required

Suitability considerations

SmarterPay is a good option for ecommerce or SaaS businesses with various setup and integration needs for managing recurring payments/subscription services.

5. Clear Debit

Clear Debit provides direct debit processing, training and consulting services to help businesses get paid on time, ensure compliance with regulations, grow their customer base and accurately predict cash flow. 

Key features

• Fully managed Bacs-approved bureau services or software solutions for businesses to enable simple, paperless direct debit collection
• Bacs-accredited training, including courses and certifications
• Consultancy services to improve compliance and increase efficiency
• Payment data validation tools

Benefits

• Save time on administration throughout the direct debit process
• Reduce failed and late payments
• Strong compliance and auditability
• Expert support, guidance and training available

Suitability considerations

Clear Debit supports varying organisational needs and is ideal for those with complex governance and compliance requirements that need technical support and educational services, alongside direct debit processing solutions.

6. AccessPay

AccessPay is a well-established provider offering cloud-based payment processing for direct debit and supplier payments, used by thousands of UK businesses.

Key features

• BACS-approved bureau services and an FCA-regulated payment solution provider with bank-grade security and compliance
• Centralised cloud platform for collecting direct debit and supplier payments without the need to coordinate with third-party providers
• Real-time reporting and insights to identify and address any payment collection issues
• Scalable solutions that help you avoid unexpected fees and pricing hikes
• Integrations with any ERPs or back-end software

Benefits

• Reduce manual errors and increase match rates
• Bulk processing of payment requests and easy collection changes with automation tools and workflows
• Real-time capabilities empower reporting, reconciliation and auditing 
• Well-established reputation and track record

Suitability considerations

AccessPay is suitable for larger SMEs and established businesses seeking a consolidated, sophisticated and trusted platform to manage direct debit collection.

7. London & Zurich

London & Zurich is a direct-debit and payment gateway provider with over 20 years of experience, offering secure, cost-effective and scalable direct debit payment processing solutions.

Key features

• Managed direct debit service, tailored to your business needs, or Bacs bureau solutions to increase processing efficiency
• Enterprise-grade software, flexible APIs and powerful functionality
• Integrations with payment tools, accounting software and marketplaces
• Custom pricing, based on your business requirements

Benefits

• Faster payment setup for new customers
• Reduce administrative tasks and time-consuming processes
• Mitigate compliance risks with an outsourced bureau solution
• Highly experienced direct debit company, supporting a wide range of industries

Suitability considerations

London & Zurich can be a good fit for various businesses, with high or low payment volumes, thanks to highly scalable solutions, integration capabilities and a tailored approach.

Choosing a direct debit company that meets your payment needs

When choosing from prospective UK direct debit companies that process recurring payments, manage subscription services and offer simple ways for customers to pay your business, consider the different features, setup and processing costs and integration potential. Weigh up pricing and reputation with things like ease of use and scalability, to judge which provider is right for you.

At iwoca, we know the importance of faster payments for businesses for cash flow management. Not only do we offer financial borrowing solutions for SMEs, iwocaPay is our B2B payment solution to simplify payments, build better trade credit relationships with suppliers and get money into the hands of companies when they need it most.‍

Learn more about iwoca.

For more handy guides to banking solutions that can support your business, browse some of our resources below:

• Integrated Payment Solutions for Growing UK Businesses
• How Online Payment Systems Work
• B2B Instalment Payments: Everything You Need to Know
• Best Payment Methods for Your Business
• Best Online Payment Systems for UK Business Growth

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