Introduction

Draycir PayThem can integrate with GoCardless to allow customers to set up a Direct Debit mandate in order to pay.

The Direct Debit configured is a non-recurring Direct Debit. The payer will still need to click the Pay Now button manually to complete the payment. 

This method allows for a direct transfer of funds from the payer to the merchant, which can incur lower fees, and also provides the payer with the security of the Direct Debit guarantee scheme in case of any disputes.

Overview of Payment methods

Merchant = the business being paid. Payer = the customer paying them.

Card payments: pulled by the merchant
The payer gives their card details, and the merchant takes the payment from the card. It's quick and familiar for the payer, but it's the most expensive option for the merchant, and the money takes 1–3 days to reach the merchant.

Direct Debit: pulled by the merchant
Before the merchant can take a Direct Debit, the payer must set up a Direct Debit mandate. This is the payer's permission for the merchant to take money from their bank account, and it records the payer's bank details. The mandate sits with the payer's bank, and the payer can cancel it at any time through their bank. The first payment under a new mandate can take a little longer while the mandate is set up.

In PayThem, the payer still clicks Pay Now each time; payments aren't collected automatically. It's cheap for the merchant but slow: about 3 working days, and the merchant only finds out a few days later if a payment fails.

Open banking ("pay by bank"): pushed by the payer
The payer approves the payment in their own banking app and sends the money from their bank account to the merchant's. It's cheap for the merchant, the money arrives in seconds, and the payer can't reverse the payment.

In one line: cards and Direct Debit are pulled by the merchant, and open banking is pushed by the payer. Cards are convenient but costly, Direct Debit is cheap but slow and needs a mandate, and open banking is cheap, instant and final.

Configuration

1. In the PayThem portal (my.paythem.co) go to Mangement>Payment Providers
2. Click Add Payment Provider
3. Select GoCardless
4. Click Connect to GoCardless or create a new account
5. Sign in to your GoCardless account 
6. Enable the Payment Provider
7. Save the Payment Provider

Actions required by the payer

The payer will need to create a Direct Debit mandate on the first time of using GoCardless. This can take up to three days to be put in place. Once the mandate is in place the Payer will be notified by email. 

With the mandate in place, the payer will be able to pay any invoices directly.

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