1. Kevin Hickey Thursday, May 31, 2012

    I wouldn’t consider myself ” stuck using awkward credit card payment systems that cost everyone dear” as I would protected from a third party company having direct access and withdrawal privileges to my bank account.

    1. Fair point, and this is a major part of the trust issue: giving direct debit details (or Automated Clearing House payments) is something that many will feel uncomfortable with. There are different consumer guarantees in different countries (in the UK, for example, it’s pretty heavily regulated: direct debits are automatically guaranteed by banks and dormant agreements are automatically deleted by them so you can’t have a sleeper arrangement)

      But I think in some cases it depends on what you’re buying, and whether GC can feel like a provider that bridges that gap between the merchant and your account. Still, for example, I would be happy to use (and already use) DD for a lot of subscriptions and recurring bills. I might not be so ready to use it for a one-off payment to a small merchant I’ve never heard of before.

  2. actiontocreate Thursday, May 31, 2012

    @Kevin hickey: I’m going to be shocked if you’re Not American.

    1. Your response feels pejorative.
      That said, yes I think it’s asking for trouble to allow direct access to bank accounts in the United States.

  3. “asks them to enter their bank details and then… boom, the money comes out of their account.”

    No way I’d give my back account login details to some 3rd party company. NEVER DO THIS! There was a little scandal in Poland not so long ago, with German based payment system working similar way – asking you for your account details, logging in on your behalf and doing wire transfers. This is totally unacceptable security risk. Credit cards on the other hands at least give you the possibility of chargeback, and you can usually set limits on cards for payments.

    Also this is a risk for shops using this payment method, at least in Poland – if such system sends a money transfer from your account, then it’s usually not sent immediately. You can still login into your bank account and withdraw the transfer. Shop will receive payment confirmation, but will never receive the money.

    See: http://niebezpiecznik.pl/post/zakupy-przez-internet-za-darmo-powazne-bledy-w-systemie-platnosci-sofort/
    (you might need to use Google Translate, though ;-)

  4. You do know about the DD Guarantee don’t you? You think you’re well covered with a Visa/MasterCard product? Well, just think that when you pay with DD you can phone up your bank at ANY POINT in the future and say “I didn’t authorise that”. What happens next? They get your money back straight away. No questions asked. Wonderful for consumers, not so good for merchants who want to know they have the money.

    GoCardless are definitely on to a winner here, although the pass to success might look somewhat foggy. Indeed, in Belgium and Germany paying with your bank account is commonplace. I think a service like this would make instant intuitive sense to consumers there.

    Best of luck to GoCardless. I think anything that disrupts the duopoly of the payments behemoths can only be a good thing (if it’s cheaper to use).

    1. Thank you, well explained, this answers my consumer concerns very well.

  5. Ranjit Khanna Monday, June 11, 2012

    Great post, keep up the good work!
    The site for getting advice on raising money for charity is http://www.find-funds.co.uk/

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