GoCardless Mandate
Overview
GoCardless Mandate – Business Explanation
The GoCardless Mandate is a business document in Dafater used to formally record a customer’s authorization to collect payments from their bank account through direct debit. It represents the customer’s consent, which is a mandatory requirement before any automated bank withdrawals can take place.
This document acts as the foundation of trust and compliance between your business and your customer when using recurring or bank-based payments.
What the GoCardless Mandate Is Used For
In day-to-day business operations, the GoCardless Mandate is used to:
- Capture and store customer approval for direct debit payments
- Enable automated, recurring, or scheduled collections from customer bank accounts
- Provide a clear audit trail showing that the customer agreed to the payment arrangement
- Support compliant and dispute-free payment collection
Without a valid GoCardless Mandate, your business should not collect payments via direct debit.
Prerequisites and Setup Requirements
Before using the GoCardless Mandate, the following must be in place:
- Your business must have an active direct debit payment arrangement with GoCardless
- Customer records should be properly set up with accurate identity and contact information
- The customer must agree to the mandate terms, either digitally or through an approved authorization method
- Internal approval or payment policies should define when mandates are required
These steps ensure that mandates are legally valid and operationally reliable.
Typical Workflow and Business Process Fit
A common business workflow involving the GoCardless Mandate looks like this:
- Customer onboarding – A new customer agrees to pay via bank debit
- Mandate creation – The GoCardless Mandate is created to capture their consent
- Customer confirmation – The customer authorizes the mandate
- Activation – The mandate becomes active and ready for use
- Payment collection – Invoices, subscriptions, or repayment schedules use the mandate to collect funds
- Ongoing reference – The mandate remains linked to future payments until cancelled or expired
This workflow ensures smooth, repeatable payment collection with minimal manual follow-up.
Key Business Scenarios Where It Is Essential
The GoCardless Mandate is especially important in the following scenarios:
- Subscription-based services with recurring monthly or annual charges
- Loan or installment repayments collected automatically from customer accounts
- Membership fees for clubs, associations, or service providers
- Utility or service billing where regular bank withdrawals are preferred
- Long-term customer contracts that require predictable cash flow
In these cases, the mandate reduces payment delays and improves revenue stability.
Important Considerations for Users
When working with the GoCardless Mandate, users should keep in mind:
- Payments can only be collected if the mandate is active and valid
- Customers have the right to cancel a mandate, which stops future collections
- Clear communication with customers builds trust and reduces disputes
- Each mandate should be linked to the correct customer and payment purpose
- Regular reviews help ensure mandates remain current and compliant
Treat the GoCardless Mandate as a critical business authorization, not just a formality.
Summary
The GoCardless Mandate is a vital business document in Dafater that enables secure, compliant, and automated direct debit payments. By properly managing mandates, businesses can streamline collections, improve cash flow, and maintain strong customer relationships.
Basic Information
- Module: Payment Gateways
- Document Type: Other
Fields
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| disabled | Disabled | Check | - | Indicates whether this mandate is inactive for Dafater processing | |
| customer | Customer | Link | ✓ | Customer | Customer linked to this mandate for billing in Dafater |
| mandate | Mandate | Data | ✓ | - | Unique GoCardless mandate reference used for direct debit |
| gocardless_customer | GoCardless Customer | Data | ✓ | - | GoCardless customer identifier associated with this mandate |
Permissions
| Role | Read | Write | Create | Delete | Submit | Cancel |
|---|---|---|---|---|---|---|
| System Manager | ✓ | ✓ | ✓ | ✓ |
Related DocTypes
| DocType | Relationship | Module |
|---|---|---|
| Customer | Links to | Selling |