Can You Collect Direct Debits On Weekends?

If your business uses a Direct Debit payment system for customers, then you might face some questions around when a Direct Debit transaction could take place. Your customers may want to know if you can collect Direct Debits over weekends or bank holidays, for example. 

It’s always good to gain clarity for your organisation and your customers around payment transactions, so that expectations are managed and revenues meet your required levels each month. 

Data published by Pay.UK, the body that manages Direct Debit organisation, reveals that there were 423,889 Direct Debits transacted during July 2024, increasing from the 387,717 that took place in July 2023. 

It’s good to note that customers are really familiar with the Direct Debit process, as surveys show that "debit card" and "Direct Debit" are the top two answers among UK consumers on the subject of "most common online payments by type”. 

Contents

• What is the process of Direct Debit payment?
• How long can Direct Debit take?
• Can you collect Direct Debits on weekends?
• What happens if a Direct Debit is not taken?
• Discover enhanced Direct Debit management with Interbacs.

What is the process of Direct Debit payment?

There are four critical steps to the process of Direct Debit payment organisation:

1. Set up: customers fill out a Direct Debit mandate form or instruction with your business if they want to organise a regular payment collection. 
2. Instructions can be organised online, over a phone call or in writing. Once this form is complete, your business sends it to your bank, which becomes the authorisation to allow payments from customers to be collected on your behalf. 
3. Advance notice: you should send your customer a notice, typically around ten working days before the payment due date, so that customers know when a payment will be taken and the amount they will pay. 
4. Payment collection: When it comes to the agreed payment date, your bank should request the money from your customer’s bank account. This should then be transferred to your business account. 
5. Direct Debit guarantee: customers are protected against any errors or mistaken payments being taken from their bank account. A refund is issued if there has been an erroneous payment. For example, if a Direct Debit has been officially cancelled and a payment is incorrectly collected. 

Can you collect Direct Debits on weekends?

The official answer to: Can you collect Direct Debits on weekends? It’s typically no, as these transactions really only take place on working days. If a Direct Debit falls on a weekend date, it’s likely that the payment will be taken in the next few working days. 

When it comes to bank holidays, such as the one in August, payments are generally taken the next working day, which is often the Tuesday of that week. 

It’s good to note that during the festive period, payments may be slightly more delayed than usual, due to Christmas Day and Boxing Day, particularly if they fall at the weekend. 

Bacs rules state that Direct Debits can’t be taken early and must be taken on or straight after the agreed payment date. This information is helpful for customers to know so that they have a transparent understanding of the Direct Debit process. 

What happens if a Direct Debit is not taken?

Mistakes happen and sometimes a payment can be overlooked or interrupted for some reason. A Direct Debit may not come out of a customer’s bank account on time due to a payment failure or if there is a lack of information available.

Other factors may affect Direct Debit transactions, such as insufficient funds in the bank account, incorrect bank details, an administrative error or a Direct Debit cancellation. 

Checking your Direct Debit reports, such as ADDACS (Automated Direct Debit Amendment and Cancellation Service), will help you identify the specific issues with a Direct Debit payment failure so that you can quickly resolve any problems. 

Discover enhanced Direct Debit management with Interbacs

Learning if you can collect Direct Debits on weekends is all part of becoming familiar with Direct Debit management. It can be a juggle to balance payment systems alongside running your business on a daily basis. 

That’s why Interbacs offers a variety of Direct Debit solutions so that you can select the right one to suit your business needs. Interbacs’ Direct Debit solutions improve your payment collection process, smooth the customer journey and provide you with financial certainty. 

With a proven track record in successful Direct Debit management for all types and sizes of businesses and with a compelling industry reputation, Interbacs are well positioned to support all of your business account needs.

Ready to make the switch? Contact Interbacs today for a personalised consultation and discover how we can optimise your direct debit processes.