[mattmanser]

GoCardless is built on top of the Direct Debit scheme, which is pretty great.

Some details about DD here:

https://gocardless.com/direct_debit

Fun fact: Without scaremongering, as I'm certain it happens once in a blue moon, technically speaking someone can ask for some or all of their money back from their bank without even talking to you whenever they want and GoCardless will give it to them.

But as I said, blue moon. I did this to an electricity company that had failed to close my account 3 times, walked into the bank, asked for 6 months DD payments back. Bank did it with no quibbles.

[untog]

Yep, direct debit is great (I'm originally from the UK). The US doesn't really seem to have an equivalent, though- you can do direct transactions on a checking account by giving those details to a provider, but then you end up having to maintain a balance with that provider (e.g. Dwolla). Pretty awkward.

[rytis]

it's great, unless you're on the other side of the fence. a customer decides that you don't deserve the money for the product you shipped, and requests the money back. without even bothering to clarify what's wrong. and there's absolutely nothing you can do about it.

well, technically there is, but is it worth 5-10£ in losses? no. and you loose. and customer gains. everyone's happy.

PS. I'm ranting, because my wife just sold on her online shop something to a customer, who then went to a bank and said they can't remember making this payment. so bank charged paypal, and paypal removed the funds. we raised a dispute, but got a standard answer of 'wait 75days and see what the bank decides, the decision will be final. bye.'

[untog]

I think that's PayPal specifically. They have a reputation for repeatedly doing exactly this, especially on eBay transactions.

[rytis]

so how would that work in the DD scenario? someone goes to a bank and asks for 6 months of payments back, what happens to me (the seller)?

[untog]

To be honest, I don't know. But the same applies to credit cards- I can walk into a store, buy something, then phone up my credit card provider and reverse the transaction.

It just happens with Paypal far more often, and their investigation process is much less transparent.