Collection Timelines

Overview

Acquired will ensure that your Direct Debit payments are collected from your customer's account as per the specified charge date. Each payment collected under an existing mandate follows the Bacs three-day processing cycle, meaning it is submitted to the scheme two working days before the charge date. Notification of the collection being transmitted to the scheme will be confirmed through our collection_submitted webhook.

Direct Debit collections created two days before their specified charge date, which is the earliest possible timeframe, must be established before 4:30 PM to ensure submission to the scheme on the same day and subsequent collection on the charge date

Collections initiated after 4:30 PM will not be processed by BACS until the following working day, requiring an additional day for the collection attempt. Additionally, collection requests received on non-working days will be processed on the next available working day.

Collection Process

Collection process: existing mandate

Because of the way Direct Debit works, your payments are settled the same day a collection attempt is made from your customer’s account. Even if a payment doesn’t go through, it will still be settled on Day 2. Should your customer’s bank find any discrepancies, like an overdrawn account, they’ll alert your bank for a payment reversal.

Notifications of failures are conveyed through another Bacs three-day cycle. Typically, the customer's bank provides this notification on the second working day, which is when the payment was scheduled.

However, in approximately 1% of instances, the notification is dispatched only on the next day. Consequently, Acquired do not receive confirmation of the failure until 4 working days post payment submission.

When Acquired gets a failure notification, the payment will be auto-reversed. Therefore, in some instances a payment cannot be deemed successful until there is no failure notification on day 4.

Collection process: new mandate

If you don't already have a mandate with your customer, one needs to be set up before a payment can be collected. This adds an additional Bacs processing cycle.

If we take into account the 1% of cases where failure notifications are submitted are day late, mandate creation through to confirmation of collection can take up to seven working days.