Direct Debit
Direct Debits can be set up online, in person or over the phone.
With Direct Debits donors authorise a charity to take money from their bank account for a fixed or variable amount. This is great for your supporters as their circumstances may change and they may need to amend their charitable giving. Offering supporters the flexibility to reduce or increase the monthly amount may in the long run keep them on board and ensure regular gifts for your work.
A charity Direct Debit also puts your donors in control as they have the right to cancel them at any time by contacting their bank. And the Direct Debit Guarantee protects their money from being taken in error, adding an extra layer of security. This is important for donors. Knowing they are in control of their money and that it’s protected will give them the peace of mind that you’re an organisation that values their relationship.
Recurring card payments
Recurring card payments (also known as continuous payment authorities) can also be set up online, in person or over the phone.
With recurring card payments a charity will ask for a credit or debit card number, rather than bank details. A donor passes these on and gives you authority to take the payments. In this instance the donor’s contract is with you the charity, whereas with a Direct Debit they have instructed their bank and their contract is with the bank.
The one big difference for donors is that cancelling a recurring card payment is not as straightforward as cancelling a Direct Debit. Donors will need to contact you and their bank to ensure no future payments are taken.
Put simply, recurring card payments give the donor less control as they are giving the charity the authority to collect donations.