Stripe Direct Debit
- 28 Nov 2023
- 2 Minutes to read
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Stripe Direct Debit
- Updated on 28 Nov 2023
- 2 Minutes to read
- DarkLight
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What is Stripe Direct Debit?
Stripe Direct Debit is a direct debit payment method that let you collect invoice payments for UK customers through a direct debit mandate.
Country Availability
United Kingdom
Processing Time
3 to 6 business days
For more information, check out Stripe Direct Debit Timing.
How Stripe Direct Debit Works
The setup process to use Stripe Direct Debit as a payment method in your space is simple:
1. Open a Stripe account
2. Enable Stripe Direct Debit as a payment method in Nexudus
3. Send Stripe Direct Debit signup requests to customers through Nexudus
Once you send customers the signup request, they will be able to add their bank details and complete the Stripe Direct Debit mandate request.
For more information, check out Enabling Stripe Direct Debit.
Customers and their banks must accept the direct debit mandate request before you can start receiving any payments from them through Stripe Direct Debit.
Stripe Direct Debit payments take at least 3 business days to be fully settled.
If a customer is invoiced on the 1st of the month and their invoice becomes due on the 4th, you won't receive payments before the 7th at the earliest.
Stripe Direct Debit Refunds
Refunding invoices originally paid through Stripe Direct Debit is always a two-step process:
1. Recording the refund in Nexudus
You should start by recording the refund in Nexudus. Refunding the customer helps you keep track of the refund in Nexudus, but it won't trigger any actual refund through Stripe Direct Debit.
2. Sending the refund through Stripe Direct Debit
Once you've recorded the refund in Nexudus, you should also manually refund your customer through Stripe Direct Debit for the same amount you've refunded in Nexudus. This second step is crucial, as the customer won't receive their refund until you send it through Stripe Direct Debit.
Stripe Direct Debit Failed Payments
If a Stripe Direct Debit payment fails and you'd like to trigger a new payment request in Nexudus, all you need to do is edit the invoice reference.
Why do you need to edit your invoice reference?
All your issued invoices have a unique idempotency key that payment providers use to identify each payment request. Once this key is used to request a payment, it can't be reused to prevent duplicate payments.
Editing your invoice reference effectively generates a new idempotency key and allows Stripe Direct Debit to trigger second payment request for the same invoice.
You can edit your invoice reference by opening the invoice and then clicking on the reference itself.
Do not edit the invoice number itself.
Editing the invoice number will shut down automated invoicing and require support to reset your invoice sequence for you to be able to issue invoices again.
For example, if your invoice reference is INV-0136, change the reference to INV-0136* or INV-0136New and then click Save changes.
Once you've edited the invoice reference, Stripe Direct Debit will automatically try to collect payment for the invoice, based on the standard processing times that apply.
In some rare instances, payments initially approved by the customer's bank and marked as Paid out in Stripe Direct Debit are rejected once the payment is fully settled.
In this instance, you'll receive a failed payment notification from Stripe Direct Debit, but the invoice will remain Paid in Nexudus.
To fix the issue and receive payment, you need to cancel the failed invoice and then issue a new invoice to trigger a new payment request.
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