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What is GoCardless
GoCardless is a UK-based payment processing company that allows businesses to easily set up and collect direct debit payments from their customers.
It is an online direct debit service that enables companies to automate their recurring payments and subscriptions, and also helps to reduce the administrative burden associated with manual payments. The company partners with various software providers to enable businesses to integrate the GoCardless service into their existing systems and workflows.
GoCardless was founded in 2011 by Matt Robinson, Tom Blomfield, Hiroki Takeuchi, and Carlos Gonzalez-Cadenas. They had the goal of making the process of setting up and collecting direct debit payments simpler and more efficient for businesses.
The company initially focused on serving small and medium-sized businesses in the UK, but has since expanded to serve businesses in other European countries as well.
In 2013, GoCardless raised $7.5 million in a funding round led by Accel Partners, and in 2014, it raised an additional $22.5 million in a series B funding round led by Notion Capital. These funds were used to support the company’s expansion into new markets and to develop new products and features.
In the following years, GoCardless continued to grow, expanding its service to other countries and increasing its customer base. By 2021, the company had raised over $100 million and had over 50,000 customers.
It’s products and services are used by small businesses, marketplaces, and enterprise companies in various industries including SaaS, e-commerce, property management, and more.
GoCardless currently operates in several countries across Europe and Asia. The company allows businesses in the following countries to set up and collect direct debit payments from their customers:
- United Kingdom
- Australia
- Belgium
- Denmark
- France
- Germany
- Ireland
- Italy
- Netherlands
- Spain
- Sweden
- Switzerland
- Hong Kong
- Singapore
It’s worth noting that in some of the countries GoCardless operates, the service may be limited to certain types of businesses or to certain types of payments. Additionally, the fees and features may vary depending on the country.
It’s also worth noting that GoCardless is constantly expanding its services, so the countries it operates in may change over time.
How GoCardless works
GoCardless works by allowing businesses to set up direct debit payments with their customers. A business can use GoCardless to create a direct debit mandate, which is a legally binding agreement between the business and the customer that authorizes the business to collect payments from the customer’s bank account.
When a customer agrees to make payments through GoCardless, they provide their bank account details to the business, which are then passed on to GoCardless. GoCardless uses these details to set up the direct debit mandate and to initiate the payment process.
Once the mandate is in place, the business can use GoCardless to collect payments from the customer’s bank account on a recurring basis, for example, for subscriptions, memberships, or recurring invoices. The customer will be notified of the upcoming payment and the payment will be made automatically from the customer’s bank account to the business’s bank account.
GoCardless also provides a dashboard for businesses to manage their payments, which allows them to view payment history, issue refunds, and more. Additionally, businesses can integrate GoCardless with their existing systems and workflows, for example, by using its API or by using one of its many software partners.
Is it safe to use GoCardless
GoCardless is generally considered to be a safe and secure way for businesses to collect direct debit payments from their customers. The company uses a number of measures to protect the sensitive financial information of its customers and to ensure that payments are processed securely.
Firstly, GoCardless is regulated by the Financial Conduct Authority (FCA) in the UK and is also compliant with the Payment Card Industry Data Security Standards (PCI DSS). This means that it follows strict rules and guidelines for protecting customer data and for ensuring the security of payment transactions.
Additionally, GoCardless uses bank-grade security measures to protect customer data, such as secure servers and encryption. All sensitive information is stored on servers that are protected by firewalls and other security measures, and all data is transmitted over secure connections.
Furthermore, GoCardless also provides fraud prevention tools to help businesses identify and prevent fraudulent activity. For example, it uses machine learning algorithms and other tools to detect and prevent fraudulent transactions.
Overall, while no system can guarantee complete security, GoCardless takes the necessary steps to protect its customer’s sensitive data and to ensure the security of their payment transactions.
Does GoCardless charge a fee
Yes, GoCardless charges a fee for its service. The company charges a percentage of each transaction as well as a fixed fee per transaction. The exact fees vary depending on the country, currency, and volume of transactions.
For example, In the UK, the company charges 1% + 20p for transactions under £10, and 0.5% + 20p for transactions over £10. For transactions in Euros, the fees are 1.4% + €0.25 for transactions under €10, and 0.75% + €0.25 for transactions over €10.
It’s worth noting that some of the fees may vary depending on the plan you choose, for example, if you are a high-volume business, GoCardless offers a custom pricing plan. Additionally, some of the software partners that integrate with GoCardless may charge additional fees.
It’s also worth noting that GoCardless may charge additional fees for certain features or services, such as refunds, chargebacks, or currency conversions.
How to use GoCardless
Here is a guide on how to use GoCardless to set up and collect direct debit payments from your customers:
- Sign up for a GoCardless account: You can sign up for a GoCardless account on the company’s website. You will need to provide some basic information about your business, such as your company name and contact information.
- Connect your bank account: Once you have signed up for an account, you will need to connect your business’s bank account to GoCardless. This will allow GoCardless to transfer the funds from your customer’s bank account to your business’s bank account.
- Create a direct debit mandate: Next, you will need to create a direct debit mandate, which is a legally binding agreement between your business and your customer that authorizes your business to collect payments from the customer’s bank account. You can create a direct debit mandate by providing GoCardless with your customer’s bank account details.
- Collect payments: Once you have a direct debit mandate in place, you can use GoCardless to collect payments from your customer’s bank account on a recurring basis. For example, you can use GoCardless to collect payments for subscriptions, memberships, or recurring invoices.
- Manage your payments: GoCardless provides a dashboard for businesses to manage their payments, which allows you to view payment history, issue refunds, and more.
- Integrate with your systems: GoCardless can be integrated with your existing systems and workflows, for example, by using its API or by using one of its many software partners.
- Monitor and review your account: GoCardless provides detailed reports and analytics to help you monitor your account and understand how to optimize your use of the service.
Please note that this guide is a general overview, some steps may vary depending on your location, your business’s needs and specific features that you may want to use.
Can I exchange currency using GoCardless
Yes, GoCardless allows businesses to exchange currency using its service. The company supports multiple currencies, which means that businesses can collect payments in different currencies and have them automatically converted to the currency of their choice.
When you set up your GoCardless account, you can choose the currency that you want to receive payments in. Once you have done this, you can start collecting payments in any of the supported currencies.
GoCardless uses the daily exchange rate from the European Central Bank (ECB) for EUR payments and from the Bank of England (BoE) for GBP payments. For other currency payments, the exchange rate is set by GoCardless and can be subject to change.
It’s worth noting that when you exchange currency using GoCardless, you may be subject to additional fees, such as currency conversion fees. Additionally, the exchange rate used by GoCardless may be different from the rate offered by other currency exchange providers.
You can check the GoCardless’s pricing page or contact the company’s customer service team for more information on currency exchange rates and fees.
The company supports the following currencies for payment collection:
- Australian Dollar (AUD)
- Canadian Dollar (CAD)
- Danish Krone (DKK)
- Euro (EUR)
- Great British Pound (GBP)
- Hong Kong Dollar (HKD)
- Japanese Yen (JPY)
- Norwegian Krone (NOK)
- New Zealand Dollar (NZD)
- Singapore Dollar (SGD)
- Swedish Krona (SEK)
- Swiss Franc (CHF)
- United States Dollar (USD)
It’s worth noting that the availability of certain currencies may vary depending on the country where you are using GoCardless. Additionally, the company may add or remove currencies over time.
It’s also worth noting that when you exchange currency using GoCardless, you may be subject to additional fees, such as currency conversion fees. Additionally, the exchange rate used by GoCardless may be different from the rate offered by other currency exchange providers.
You can check the GoCardless’s pricing page or contact the company’s customer service team for more information on currency exchange rates and fees.
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