This article explains how to set up and process Direct Debit payments using RMS Pay, including BACS Direct Debit for UK properties (being phased out).
Overview
Direct Debit payments allow you to automatically process recurring payments each month for longer-stay guests. This is useful for guests on extended stays (for example, seasonal workers, long-term holiday park residents, or corporate tenants) where monthly payment collection is more practical than upfront payment.
Only properties with RMS Pay will appear as an option on the Direct Payments screen, and the guest must have an email address on their Guest Profile to be displayed on this screen.
The Direct Payments screen provides filtering and grouping options. Users can:
- Send a Pay By Link if there is no token or BACS agreement in place, allowing the guest to set up their payment method.
- Select a specific Form Letter for the Pay By Link communication.
If no payment token or BACS agreement exists for a guest, Users can send a Pay By Link for the initial amount. When the guest completes payment through the link, a token is created for future automated payments.
What Are RMS Pay Tokens?
RMS Pay Tokens are secure, tokenised references to a guest's saved payment method (for example, a credit card or Direct Debit agreement). Tokens allow payments to be processed without storing full card or bank details in RMS, protecting sensitive payment information. For more information, see Credit Card Token and RMS Pay - Network Tokens.
✒ Please Note: RMS has multiple Direct Debit functions. Select the option that matches your property setup:
- Direct Debit Setup (Guest Profile) - Configure bank account or saved card details on a Guest Profile to enable automated payments.
- Direct Debit (Bank File) - Generate an EFT file to upload to your merchant bank; the bank processes payments from guest bank accounts. Available to all properties.
- Direct Debit via RMS Pay - Charge a guest's saved payment token directly through RMS Pay in real time. UK properties: includes BACS Direct Debit (being phased out).
- Charge Credit Card (Payment Gateway) - Bulk charge guest credit card tokens in real time using an existing third-party payment gateway.
- Direct Debit via GoCardless - Collect payments directly from a guest's bank account using an authorised GoCardless mandate. Currently available in Australia and New Zealand.
BACS Direct Debit Disputes
BACS Direct Debit disputes are not defendable. When a BACS Direct Debit dispute is received, the funds are deducted from your account automatically. Unlike credit card chargebacks, there is no interbank scheme for BACS Direct Debit that facilitates a dispute defence process.
To resolve BACS Direct Debit disputes, RMS advises contacting the payer (guest) directly to resolve the matter outside of the banking system.
Although BACS disputes will appear in the RMS Pay Chargeback Dashboard, they cannot be defended via the normal chargeback defence workflow.
Setting Up Direct Debit on a Reservation
Open the Reservation in RMS.
- Click on Guest No. to open the guest profile.
- Navigate to the Banking tab.
- Select Activate Direct Debit.
- Enter the bank details if required.
- Enter the Amount to be debited each month.
- Select the Day of Month for payment.
- Select Save/Exit.
Processing Direct Debit Payments
In the side menu of RMS, go to Utilities > Direct Payments > RMS Pay.
- Select the required Payment Type (for example, RMS Pay Token or BACS).
- Select the Reservation Account.
- Optional: Select the Grouping to filter results.
- Select the Day of Month Payable to filter to reservations with payments due on a specific day.
- Optional: Select Send Pay By Link if No Token to automatically send a Pay By Link to any guests who do not yet have a saved payment method.
- Optional: Select Only Allow BACS Payments to restrict processing to BACS Direct Debits only (UK properties only, being phased out).
- Select the required reservations to process.
- Select Process.
BACS Dispute Reason Codes
The following table lists the dispute reason codes and descriptions for BACS Direct Debit disputes.
Terminology: DDI (Direct Debit Instruction)
A DDI (Direct Debit Instruction) is the authorisation between the payer's bank and the service user that allows Direct Debits to be collected from the payer's account. If there is no valid DDI, or if the DDI details are incorrect or expired, BACS Direct Debits can fail or be disputed.
| Code | Reason | Description |
|---|---|---|
| 0 | Insufficient funds | RMS Pay was not able to retrieve funds, or the account has been frozen due to a Garnishee order or arrestment. |
| 1 | Instruction cancelled | The account holder, the issuing bank, or RMS Pay cancelled the transaction. |
| 2 | Payer deceased | The account holder is deceased. |
| 3 | Instruction transferred | The account was transferred to a new bank or building society. |
| 4 | Advance notice dispute | The account holder questions the time, amount, or frequency and requested a reversal. |
| 5 | No account | The account number is not recognised at the account holder's bank. |
| 6 | No DDI Instruction | No Direct Debit Instruction was attached with the bank to enable collection. |
| 7 | Amount differs | The amount differs from the agreed amount, or a DDI validation error occurred. |
| 8 | Amount not yet due | The date of debit is earlier than the due date in the advance notice. |
| 9 | Presentation overdue | Presentation is more than three working days after the due date, or representation is more than one month from the original date. |
| A | Service user differs | The identity of the service user differs from the DDI. |
| B | Account closed | The account holder has closed their account. |
| C | Account transferred | The account was transferred to a different branch. |
| D | Advance notice disputed | The account holder requested a reversal of the payment. |
| E | Instruction amended | New account details provided. |
| F | Invalid account type | The bank does not allow Direct Debits on this type of account. |
| G | Bank will not accept DD | The bank does not allow Direct Debits on this account. |
| H | Instruction expired | You attempted to convert a DDI that is shown as expired. |
| I | Reference not unique | The DDI matched an existing one with a similar reference. |
| K | Instruction cancelled by bank | The bank cancelled the DDI. |
| L | Incorrect payer details | The sort code or account number failed validation, does not exist, or is not all numeric. |
| M | Code/status incompatible | The transaction code or user status is incompatible. |
| N | Transaction disallowed | DDI setup disallowed at the payer's branch. |
| O | Invalid reference | The DDI reference does not comply with AUDDIS rules. |
| P | Payer name not present | The account holder's name field is blank. |
| Q | Service user name blank | The service user's company or trading name field is blank. |
| R | Instruction reinstated | A cancelled DDI was reinstated within two months of cancellation. |
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