How can I integrate JotForm with UK Direct Debit?

  • Profile Image
    GSMLeisure
    Asked on November 22, 2017 at 08:50 AM

    Hi

    do any of the payment gateways you work with facilitate the setting up of Direct Debit instructions for the UK?

    If yes - which? If no - do you have any plans for adding such a gateway?

    Many thanks

    John

  • Profile Image
    Kevin_G
    Answered on November 22, 2017 at 10:29 AM

    Unfortunately, we do not have any integration related to "Direct Debit". 

    I have been searching and found this webpage: https://docs.whmcs.com/Direct_Debit 

    Is it the same gateway you're looking for? 

    If not, may you please provide us their webpage? 

    We will forward this to our second level as feature request. 

    Looking forward to your response. 

  • Profile Image
    GSMLeisure
    Answered on November 22, 2017 at 10:41 AM

    Hi Kevin

    Direct Debit is the UK wide version of the European SEPA Direct Debit (SDD). An extract from the wikipedia page is below for your interest. As the 3rd most popular payment method in the UK it is something it would be great to have through Jotform.

    John

    The following is an extract from https://en.wikipedia.org/wiki/Direct_debit

    _______

    United Kingdom[edit]

    Direct Debit is a payment method for recurring payments in the UK. It is the third most popular payment method in the UK, after cash and debit card, according to Payments UK.[3] Bacs Payment Schemes Limited is the organisation with responsibility for the Direct Debit and Bacs Direct Credit schemes.[4] Direct Debit was invented by Alastair Hanton while he was working at Unilever as a way of collecting payments more efficiently.[5] Direct Debit accounts for the payment of 73% of household bills and almost nine out of 10 British adults have at least one Direct Debit commitment.[6] In fact, in 2015 nearly 3.9 billion Direct Debits were processed,[7]representing a year-on-year increase of 239 million which surpasses the previous record for annual growth of 161 million, set in 2004.[8] 4.07 billion Direct Debits were processed in 2016, an increase of 4.9% from 2015.[9] Payments UK predicts the figure is expected to rise to 4.4 billion by 2026.[10]

    Authorisation[edit]

    To set up payments by Direct Debit, the payer must complete a Direct Debit Instruction to the merchant. This instruction contains bank-approved wording that makes it clear the payer is setting up an ongoing authority for the merchant to debit their account. The interface for completing the Direct Debit Instruction is controlled by the merchant, who then sends the data from the form to the customer's bank, via Bacs.

    The UK Direct Debit scheme rules allow for Direct Debit Instructions to be completed in several ways:

    paper-based forms, which require a signature over the telephone using a formal script to collect all the required information[11] online, using an online application form which has been approved by a bank through other interactive services, where the interface has been approved by a bank Guarantee[edit]

    All UK payments collected by Direct Debit are covered by the Direct Debit Guarantee, which is provided by the UK's banks and building societies.[12]

    The Direct Debit Guarantee provides three important safeguards to protect customers:

    Immediate refunds. Customers can get a full and immediate refund from their bank or building society in the event of an error in the payment of a Direct Debit. Advance notice. Customers must be told the amount and date of each payment 10 working days (unless agreed otherwise) in advance. Instant cancellations. Customers can cancel a Direct Debit at any time.[13]

    Under the guarantee a payer is entitled to a full and immediate refund in the event of an error in the payment of a Direct Debit from their account.[14] Where an error has occurred, refunds are paid immediately by the payer's bank, who will then attempt to recover the money from the merchant's bank, who in turn will attempt to recover the money charged back from the merchant.

    Under the Direct Debit scheme rules, merchants have very few grounds to challenge a charge in generated under the Direct Debit Guarantee. Instead, they can pursue any payments which they believe have been incorrectly refunded to the payer directly through the small claims court.

    Access[edit]

    Before a company or organisation can collect payment by Direct Debit they need to be approved by a bank, or use a commercial bureau to collect direct debit payments on their behalf.[15] This approval process ensures the company will be able to operate within the direct debit scheme rules and maintain the integrity of the scheme.[16]

    If a large number of customers complain about direct debits set up by a particular service user then the service user may lose its ability to set up direct debits.

    Dormancy[edit]

    Any direct debit instruction that has not been used to collect funds for over 13 months is automatically cancelled by the customer's bank[17] (this is known as a "dormancy period"). This can cause problems when the mandate is used infrequently, for instance, taking a payment to settle the bill for a seldom-used credit card. If the credit card company has not collected a payment using the Direct Debit mandate for over 13 months the direct debit mandate may have been cancelled as dormant without the customer's knowledge, and the direct debit claim will fail.

    Fraud[edit]

    The problem of direct debit fraud is extensive according to research by Liverpool Victoria Insurance [18] which reveals that over 97,000 Britons have fallen victim to criminals setting up fraudulent direct debits from their accounts. An average of £540 goes missing before the customer notices. Direct debit payment fraud in 2010 accounted for around 10.6% of all identity fraud cases. The extent of direct debit scamming is set to grow to 41,000 cases a year by 2013, equating to a 57% rise.

    However, the problem is exacerbated by some of the banks themselves for failing to implement any controls which prevent companies or fraudsters taking monies from business and consumer accounts.[19] The problem of cancelled and obsolete direct debits being wrongfully revived or re-implemented is estimated to cost UK consumers £385 million in 2010. For those customers who find out, it takes them on average four months to notice. Although no specific figures were collected it appears a substantial number of people lose considerable amounts of money annually because the obsolete direct debit is neither noticed nor recovered.[20]

    On 7 January 2008, Jeremy Clarkson found himself the subject of direct debit fraud after publishing his bank account and sort code details in his column in The Sun to make the point that public concern over the 2007 UK child benefit data scandal was unnecessary. He wrote, "All you'll be able to do with them is put money into my account. Not take it out. Honestly, I've never known such a palaver about nothing". Someone then used these details to set up a £500 direct debit to the charity Diabetes UK. In his next Sunday Times column, Clarkson wrote, "I was wrong and I have been punished for my mistake."[21]

    Training[edit]

    Businesses and organisations collecting payments through Direct Debit are instructed by Bacs to take mandatory training. Whether businesses are collecting independently or through a bureau, their relevant staff need to understand the fundamentals of the payment method.[22] Courses are available through Bacs or through accredited external training. There are only four recognised companies in the UK providing Bacs accredited training: Accountis (D+H), Bottomline Technologies, Clear Direct Debit and SmartDebit.[23]

  • Profile Image
    Kevin_G
    Answered on November 22, 2017 at 11:44 AM

    Thank you for the info; however, I did not find any API/developers info on their website. Please note that if they do not have an API will not be possible to implement an integration, please provide us with the link to a webpage so we can pass it over with the feature request. 

    Also, please note that this may take some time to be implemented, we cannot provide an ETA and it will be taken into account based on the number of users requesting the same feature.