GoCardless Review: The Best Choice For Business Payments?

GoCardless is an online payment service provider that was founded in 2011 to provide small and mid-sized businesses with a convenient way to manage direct debit transactions and avoid card processing fees. It has since expanded and now also serves large companies, processing around $20 billion annually. GoCardless now operates in the US as well as various European countries and Australia.

More than 85,000 companies use GoCardless to pay and get paid.¹ But it is a suitable choice for your business? This article will look at the key features of the service to help you decide.

You'll also be able to learn about Wise Business as an alternative for companies that frequently send and receive international payments.

Find out more about Wise Business

GoCardless Review: Quick Overview

GoCardless: Key Features

In the US, GoCardless uses the Automated Clearing House (ACH) payment network to process direct debit transactions at competitive rates. Unlike some other ACH service providers, it supports international transactions. It typically takes 3-4 business days for ACH transactions to settle, although GoCardless supports faster payments with its premium subscription service.

The company processes eCheck payments in the US using the ACH network, but doesn’t provide support for paper check scanners. It also doesn’t process credit or debit card payments, so you need to use it in combination with a card processing service.

There are no monthly fees, long-term contracts or early termination fees with a GoCardless account. It offers pay-as-you-go pricing that is well suited to small businesses looking for a straightforward way to collect one-off or recurring ACH payments.

There are three pricing plans with monthly billing and different levels of transaction fees: Standard, Advanced and Pro. Businesses that have a large volume of transactions can negotiate a custom plan.

The Advanced plan credits payments in two days with Faster ACH, reduces failed payments through intelligent retries, verifies new customers' bank account details instantly at checkout, and allows you to customize the user experience, such as with branded payment pages and email notifications – for which there are additional fees. The Pro plan adds fraud prevention features.

There’s no limit on the number of monthly transactions, but there is a limit of $5,000 on the amount, so the service may not be suitable for businesses that handle larger payments. There is also a charge of $5 for additional chargebacks if you exceed 15 in one month.

GoCardless processes international transactions through Wise for payments in more than 30 countries and eight currencies: Australian dollar (AUD), Canadian dollar (CAD), Danish krone (DKK), Euro (EUR), British pound sterling (GBP), New Zealand dollar (NZD), Swedish krona (SEK), and US dollar (USD). International payments can be collected with or without converting the currency and use the mid-market exchange rate without commission or other markups.

Domestic transaction fees range from 0.5% + $0.05 to 0.90% + $0.05 depending on the plan, while fees for international transactions range from 1.5% + $0.05 to 1.90% + $0.05. This is lower than card processing fees, which can exceed 3%.⁴

Ease of Use

GoCardless accounts provide businesses with hosted payment pages as well as access to its application programming interface (API) to integrate payments directly into their website at no additional charge.

The platform also offers integrations with more than 350 third-party software partners, including QuickBooks, Salesforce, and Xero.

Positive GoCardless reviews on independent review site, Trustpilot, state that the GoCardless platform is user-friendly and integrations are easy to set up. They also praise the company’s customer service team for providing helpful responses if they do need support.⁴

However, some negative reviews from Trustpilot mention their accounts being closed unexpectedly after GoCardless conducted a full review of their business, so it’s important to check the types of businesses the service permits before signing up to avoid losing time and funds.⁵

Customer Service

GoCardless provides 24/7 customer service via support ticket submitted online. It also provides phone support in the US from its San Francisco office Monday through Friday from 9am to 6pm PT, as well as help via email. There is an extensive help center with knowledge base on the website and instructional videos on the company’s YouTube channel.⁷

GoCardless Fees

Here are some of the main fees to expect when using GoCardless:⁸

• Domestic transactions: 0.05% + $0.05 with $5 cap on Standard plan, 0.75% + $0.05 capped at $6.25 on Advanced, 0.90% + $0.05 capped at $7 on Pro
• International transactions: 1.5% + $0.05 on Standard plan, 1.75% + $0.05 on Advanced, 1.9% + $0.05 on Pro
• Refunds: $0.50
• Chargebacks: $5
• Payment failure: $5
• Business name on customer bank statements: $25 per month
• Custom checkout and notifications: $50 per month, only available on Advanced and Standard plans

What Percentage Does GoCardless take?

GoCardless charges fees ranging from 0.05% + $0.05 for each domestic transaction up to 1.9% + $0.05 for each international transaction.

Transaction charges can quickly add up if you frequently send and receive international payments. Consider a Wise Business account, which allows you to handle foreign currency transactions in 160 countries at the mid-market exchange rate and manage multiple currencies all in one place with low fees.

Features and Considerations

Conclusion: Is GoCardless the Best Choice for Your Business?

The ACH processing service from GoCardless offers small businesses an alternative to costly debit and credit card payment processing and wire transfers. You can opt to solely collect direct debit payments or use GoCardless in combination with a traditional card processor to provide your customers with options. ACH payments can be slower than other methods, but offer convenience and security for you and your customers.

Whether GoCardless is right for your business will depend on the nature of the payments you send and receive and whether you need to handle frequent international transactions.

Save Time and Money On Overseas Payments With Wise Business

Wise Business can help you save big time on international payments.

Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in currencies.

Signing up to Wise Business allows access to BatchTransfer which you can use to pay up to 1000 invoices in one go. This is perfect for small businesses that are managing a global team, saving a ton of time and hassle when making payments.

Use Wise Business >>

Some key features of Wise Business include:

• Mid-market rate: Get the mid-market exchange rate with no hidden fees on international transfers

• Global Account: Send money to countries and hold balances in multiple currencies, all in one place. You can also get major currency account details for a one-off fee to receive overseas payments like a local

• Access to BatchTransfer: Pay up to 1000 invoices in one click. Save time, money, and stress when you make 1000 payments in one click with with BatchTransfer payments. Access to BatchTransfer is free with a Wise Business account

• Auto-conversions: Don't like the current currency exchange rate? Set your desired rate, and Wise sends the transfer the moment the rate is met

• Free invoicing tool: Generate and send professional invoices

• No minimum balance requirements or monthly fees: US-based businesses can open an account for free. Learn more about fees here

About the author:
	Panna is an expert in business finance topics for the US, covering topics from invoicing to international expansion. She creates high-quality reviews on business finance tools and products with the aim to help businesses save time and make informed decisions. You can read more useful business articles on her author profile.

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All sources checked May 2024.