BACS Direct Debit

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This payment method is in beta.

BACS Direct Debit is one of the most common bank-to-bank transfers in the UK that works by obtaining a mandate from your customer. This mandate captures essential details, such as the customer's sort code, account number, name, email address, and full residential address. Mollie provides an HPP to collect this information.

How it works

Key information

Chargebacks

In Bacs, the guarantee to claim back the money only exists for unauthorised mandates and bank/merchant errors. This right remains indefinitely for the consumer under the direct debit guarantee.

Bacs Direct Debit disputes differ from credit card disputes in that they are conclusive and cannot be contested. Once a customer successfully disputes a payment, the decision is final. To address the situation, we suggest you communicate directly with the customer. If you reach an agreement and the customer agrees to return the funds, they will need to initiate a new payment.

You will be notified via email if a transaction has been successfully charged back by the consumer.

Refunds

Refunds are not included within the Bacs Direct Debit scheme and are instead handled independently by Mollie.

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Warning

Given that Bacs Direct Debit allows for disputes to be raised indefinitely, if a customer disputes a payment after you’ve issued a refund, there’s a risk that you could lose both the refunded amount and the amount involved in the dispute.