PaySauce offers customers a direct debit payment option where other payment types may not be suitable (for example, if you are not able to use a Direct payment type).
This payment type can also be known as ‘Holding’. Once your pay is closed, we will direct debit the total amount (including PAYE and processing fees) and hold it for two business days before making payments to all the payees.
Using Direct Debit
Please ensure sufficient funds are available to prevent any dishonours. Funds must be held in PaySauce account for two days, so if the direct debit is late or fails, your pay day may be delayed.
Setting up Direct Debit
No setup is required. When you close a pay run using this payment type, you automatically agree to our Terms and Conditions, which authorise us to direct debit funds from your nominated bank account. We just need you to advise our onboarding team that this is the payment type you would like to use (email [email protected] or include in any correspondence with the team).
Direct Debit processing times
Payments made using the direct debit method process after two business days, as long as you have sufficient funds available in your bank account on the day we direct debit.
Dishonoured, rejected or failed payments for Direct Debit
PaySauce will only try processing a direct debit file payment once. If a payment fails due to insufficient funds or an invalid bank account we are notified two business days after we attempt to process the payment file.
We will email you about the dishonour, inform you that we've reopened the pay period, and ask you to close the pay once you have sufficient funds available or if you cannot wait for another two business days for the payment to be processed, request you deposit the payment file amount into our account for us to release the payment on your behalf.