Understanding the Difference Between Direct Debit and Card Payment Gateways
  • 22 Aug 2022
  • 1 Minute to read

Understanding the Difference Between Direct Debit and Card Payment Gateways

Article Summary

Nexudus offers two different types of payment gateways: card payments gateways and direct debit.

Card Payment Gateways

Card payment gateways work similarly to card terminals in traditional stores.

Your customer enters their card details and their payments is processed instantly if they have enough funds to pay the invoice. It's a quick and easy way to process one-off and recurring payments.

Located in the European Union or the United Kingdom?

Make sure the payment method you pick supports Strong Customer Authentication (SCA).

For more information, check out Strong Customer Authentication (SCA).

Most card payment gateways add a £ / $ / €10 fixed charge per location enabled and a £ / $ / €0.04 charge per transaction to your monthly Nexudus susbcription.

This Nexudus charge doesn't include the fees each provider may charge you to use their services.
For more information, check out Detailed Pricing (Coworking).

Direct Debit Payments

Direct debits are a direct transfer of funds from your customer's bank account to your business account. It requires customers to set up a mandate and the approval of the customer's bank.

This payment method doesn't add any charges to your Nexudus subscription, but payments will usually take several days to be fully processed. It's a reliable way to process larger recurring payments.

Once the direct debit mandate is set up, payments are automatically collected from the customer's bank account every time a new invoice is issued.

Direct debit payments usually take at least three (3) working days to be processed once the mandate is set. Direct debit payments can take up to 12 working days to settle when mandate is set up for the first time and the first payment is being processed.

Typical processing times vary depending on your local banking laws and regulations.

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