Online payment gateway

GoCardless review (2026)

Vendor: GoCardless · Reviewed: 2026-05-11

GoCardless is bank-to-bank direct debit, not card. Lower fee for recurring B2B and subscription billing. GoCardless is a UK-headquartered direct debit and bank-debit gateway, not a card gateway. Customers authorise recurring or one-off payments by bank transfer (Bacs in the UK, SEPA in Europe, ACH in the US). No card details captured. Pulls money directly from customer's bank account on the merchant's schedule.

Editorial review in progress

Hands-on test of GoCardless is scheduled. This page covers public-knowledge UK specifics: pricing, SCA handling, setup, pros and cons. We will add a verdict and overall rating after the hands-on test completes.

Who GoCardless is best for

  • UK subscription businesses (SaaS, membership, gym, recurring deliveries)
  • B2B invoicing with recurring payments (utilities, services, professional fees)
  • Charities collecting regular donations via Bacs
  • Merchants tired of card-network interchange (Bacs cheaper than card on recurring B2B)

Who should not use GoCardless

  • One-off retail transactions (not the right tool)
  • Same-day payment requirements (Bacs is 3-day cycle)
  • International cross-border instant payments
  • Merchants needing card-acceptance as primary channel

UK pricing

1% + 20p per UK Bacs transaction, capped at £2 per transaction. International cross-border 2% + 30p. Plus Plan £25/month adds Success+ retry intelligence; Pro Plan £150/month adds Smart Payment Routing and integrations.

UK specifics: GoCardless Ltd is UK-headquartered (Companies House 07495895), FCA authorised payment institution. Pulls funds via Bacs Direct Debit, not card networks. Different rules from card interchange.

Recommended plan: Standard 1% + 20p for sub-£10k monthly Bacs volume. Plus £25/month above.

Pros

  • +Lower per-transaction fee than card on recurring
  • +No chargeback concept (Bacs has different dispute rules)
  • +No SCA / 3DS2 conversion drop
  • +UK-domiciled and FCA-authorised
  • +Strong integrations (Xero, QuickBooks, Salesforce, HubSpot)

Cons

  • ,Bacs 3-day cycle (not same-day or next-day like card)
  • ,Not suitable for one-off retail card-present transactions
  • ,Bacs Indemnity Claim rules different from card chargebacks
  • ,Customer base may resist Direct Debit setup vs card payment

SCA / 3D Secure 2 support

N/A for Bacs Direct Debit (no card details, no SCA required). Customer authentication happens once at mandate setup via Open Banking or sign-up form.

Setup complexity

Low for self-service plan via dashboard. Higher for API integration with billing system (Xero, QuickBooks, Salesforce all have GoCardless connectors).

Competitors and alternatives

Direct UK competitors to GoCardless: Stripe Billing (card), Bacstel-IP, TrueLayer (Open Banking), Crezco.

FAQs

What is GoCardless?

GoCardless is a UK-headquartered direct debit and bank-debit gateway, not a card gateway. Customers authorise recurring or one-off payments by bank transfer (Bacs in the UK, SEPA in Europe, ACH in the US). No card details captured. Pulls money directly from customer's bank account on the merchant's schedule.

Who is GoCardless best for in the UK?

GoCardless is best for: UK subscription businesses (SaaS, membership, gym, recurring deliveries); B2B invoicing with recurring payments (utilities, services, professional fees); Charities collecting regular donations via Bacs; Merchants tired of card-network interchange (Bacs cheaper than card on recurring B2B).

Who should not use GoCardless?

GoCardless is not the right fit for: One-off retail transactions (not the right tool); Same-day payment requirements (Bacs is 3-day cycle); International cross-border instant payments; Merchants needing card-acceptance as primary channel.

How much does GoCardless cost in the UK?

1% + 20p per UK Bacs transaction, capped at £2 per transaction. International cross-border 2% + 30p. Plus Plan £25/month adds Success+ retry intelligence; Pro Plan £150/month adds Smart Payment Routing and integrations.

Does GoCardless handle SCA / 3D Secure 2?

N/A for Bacs Direct Debit (no card details, no SCA required). Customer authentication happens once at mandate setup via Open Banking or sign-up form.

How long does GoCardless take to set up?

Low for self-service plan via dashboard. Higher for API integration with billing system (Xero, QuickBooks, Salesforce all have GoCardless connectors).

Does GoCardless work for both online and in-person payments?

No. GoCardless is online-only. For in-person payments you need a separate card machine and acquirer relationship.

What are the alternatives to GoCardless?

Direct competitors in the UK market: Stripe Billing (card), Bacstel-IP, TrueLayer (Open Banking), Crezco.

Reviewed by Oliver Mackman, Director. Last reviewed: 2026-05-11.