Categories / Invoicing/
Direct Debit for faster payment
Hosting provider · payment time from about 90 to 30 days
- Task
- replace Bacs transfers and standing orders with automatic collection and reconciliation
- Result
- overdue invoices down 20–30%; average payment time ~90 → 30 days; ~2 days a week of admin saved; Direct Debit adoption above 50% of customers
- Tools
- GoCardless
- Xero (GoCardless for Xero integration)
- Setup
- move customers to Direct Debit with GoCardless → connect GoCardless to Xero so collections reconcile automatically → stop manual matching of Bacs payments
Send this to your AI
A ready-to-send prompt built from this card. Your AI will ask a few questions about your business, then give you a beginner setup plan.
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Help me set this up for my business: "Direct Debit for faster payment".
Example business: Catalyst2 (15-person managed web hosting company, 5,000 customers, UK). Task: replace Bacs transfers and standing orders with automatic collection and reconciliation.
Reported result: overdue invoices down 20–30%; average payment time ~90 → 30 days; ~2 days a week of admin saved; Direct Debit adoption above 50% of customers
Tools: GoCardless, Xero (GoCardless for Xero integration)
Setup outline:
1. move customers to Direct Debit with GoCardless → connect GoCardless to Xero so collections reconcile…
Starter prompt from the guide (use it as a base):
Write an email asking an existing customer to switch to Direct Debit for their monthly {{service}} invoice.
Explain it's optional, that payments are taken on the due date, that they can cancel any time, and give the Pay now link as {{pay_link}}. Under 100 words.
First, ask me up to 5 questions about my business and tools. Then give me a beginner step-by-step setup plan, plus copy-paste prompts/templates I can use. Plain English, and tell me if any step needs a tech helper.
via autopilotbusiness.ai/use-case/hosting-provider-gocardless-xero-direct-debit-cuts-overdue-invoices-20/Step-by-step setup guide + copy-paste prompt
Needs a tech helper: this one can't be set up reliably without technical help. The notes below explain why, plus the simplest safe alternative.
Honest note: this isn't AI, and it isn't a reminder tool. It removes the need to chase by collecting the money automatically. It only works if your customers pay you repeatedly and will agree to a bank mandate. The numbers come from the vendor, and Direct Debit coverage depends on your country.
Prerequisites
- A Xero account and a business bank account that can receive payouts.
- Repeat customers (subscriptions, retainers, maintenance plans).
Step-by-step setup
Step 1. Connect GoCardless to Xero. In Xero go to Settings → Payment services, choose GoCardless / Direct Debit, then connect or create a GoCardless account. Pick your payout bank account and a fee account. Menu names may differ slightly.
Step 2. Choose a payment method per invoice theme. In GoCardless for Xero → Settings → Payment methods, assign each Xero branding theme a method: Direct Debit for subscriptions, Pay by Bank for one-off invoices.
Step 3. Show the Pay now button. Enable Pay now on those branding themes so invoices carry a GoCardless link.
Step 4. Send the first invoice. The customer clicks Pay now and signs a Direct Debit mandate once.
Step 5. Let repeat invoices collect themselves. For customers with a mandate, GoCardless collects on the invoice due date, and Xero marks the invoice paid and reconciles it. Manage cancels and retries only in the GoCardless for Xero dashboard.
Step 6. Handle big one-offs. On the Invoices page use Collect → Split into instalments where a customer needs to spread a large bill.
Copy-paste prompt
Write an email asking an existing customer to switch to Direct Debit for their monthly {{service}} invoice.
Explain it's optional, that payments are taken on the due date, that they can cancel any time, and give the Pay now link as {{pay_link}}. Under 100 words.Sources
Results as reported by the source; not independently verified. Community-sourced from public sites and attributed to the source platform. Original author? Ask us to correct or remove it. Read the disclaimer.