YC Alum GoCardless Raises Another $7M (opens in new tab)

(techcrunch.com)

28 pointshirokitakeuchi12y ago10 comments

10 comments

10 comments · 3 top-level

hackerboos12y ago· 6 in thread

The biggest obstacle to GoCardless in my opinion is failed Direct Debit charges from banks.

As a consumer, if I use GoCardless to buy a product and there are not enough funds in my account I'm charged by my bank up to £35 ($58).

If a Debit Card payment fails then I'm charged nothing.

Peroni12y ago

I really don't see how that's an obstacle. The service they provide isn't based on a brand new way of payments, it's simplifying an antiquated process that is generally a PITA.

Companies & individuals won't stop using direct debits, at least in the UK, for a very long time.

georgespencer12y ago

It's a big obstacle to uptake only if you have a choice between direct debit and something else. Almost 100% of the time when an organisation has to use direct debit, GoCardless is superior to the antiquated incumbent solutions.

greghinch12y ago

It's also a challenge for merchants, because the fact that the payment fails may not be known for up to 5 days. I would love to see if GoCardless could do something with the FasterPayments system as well, which processes in a matter of hours.

hirokitakeuchiOP12y ago

We'd love to speed up the Direct Debit system - unfortunately that isn't likely though. That is why we focus on recurring payments, where merchants are able to time the payments in advance.

If Faster Payments opens up, we are well placed to adopt it.. It's on the banks & regulators to open it up though (current access is closed). Watch this space!

timw6n12y ago

Just as another datapoint, my bank charges the same £15 fee for a failed transaction regardless of whether it's a debit card payment or direct debit.

hirokitakeuchiOP12y ago

Yes - there isn't much consistency around this. Failed transaction costs are really down to each individual bank.

We really hate this practice, and don't feel there is any legitimate justification for it. One of the many reasons we are strong believers in disruptions to the banking industry.

acjohnson5512y ago· 1 in thread

Is there something similar to this in the US? A startup idea I have could do with an all-electronic replacement for certified bank checks.

mjallday12y ago

Check out dwolla or balanced.

tomgallard12y ago

We're using GoCardless at Pwinty to bill our UK based merchants- works really smoothly, and much cheaper than collecting via debit card or PayPal as we have to do in the rest of the world.

Best of luck to them- especially after hearing they're rolling out to Europe as well- exciting times!

j / k navigate · click thread line to collapse

10 comments

10 comments · 3 top-level

hackerboos12y ago· 6 in thread

The biggest obstacle to GoCardless in my opinion is failed Direct Debit charges from banks.

As a consumer, if I use GoCardless to buy a product and there are not enough funds in my account I'm charged by my bank up to £35 ($58).

If a Debit Card payment fails then I'm charged nothing.

Peroni12y ago

I really don't see how that's an obstacle. The service they provide isn't based on a brand new way of payments, it's simplifying an antiquated process that is generally a PITA.

Companies & individuals won't stop using direct debits, at least in the UK, for a very long time.

georgespencer12y ago

greghinch12y ago

hirokitakeuchiOP12y ago

We'd love to speed up the Direct Debit system - unfortunately that isn't likely though. That is why we focus on recurring payments, where merchants are able to time the payments in advance.

If Faster Payments opens up, we are well placed to adopt it.. It's on the banks & regulators to open it up though (current access is closed). Watch this space!

timw6n12y ago

Just as another datapoint, my bank charges the same £15 fee for a failed transaction regardless of whether it's a debit card payment or direct debit.

hirokitakeuchiOP12y ago

Yes - there isn't much consistency around this. Failed transaction costs are really down to each individual bank.

We really hate this practice, and don't feel there is any legitimate justification for it. One of the many reasons we are strong believers in disruptions to the banking industry.

acjohnson5512y ago· 1 in thread

Is there something similar to this in the US? A startup idea I have could do with an all-electronic replacement for certified bank checks.

mjallday12y ago

Check out dwolla or balanced.

tomgallard12y ago

We're using GoCardless at Pwinty to bill our UK based merchants- works really smoothly, and much cheaper than collecting via debit card or PayPal as we have to do in the rest of the world.

Best of luck to them- especially after hearing they're rolling out to Europe as well- exciting times!

j / k navigate · click thread line to collapse