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Understanding Direct Debits for your Clinic

šŸ‘‹šŸ¼ Hello This article explains how direct debits (DDs) work at Coherent and how they can benefit your clinic. Whether you're new to DDs or looking to optimise your current setup, this guide will walk you through the essentials.

Written by Ellie

What are Direct Debits and why use them?

Direct Debits (DDs) are a secure, automated way to collect recurring payments directly from a patientā€™s bank account. Theyā€™re ideal for ongoing treatment plans, memberships, or payment plans. By using DDs, your clinic can reduce manual admin, minimise missed payments, and improve cash flow - all while offering a convenient, hassle-free experience for your patients.

Creating a New Direct Debit

  1. In the Coherent Dashboard, navigate to the Direct Debits page and select New

2. You will then be taken to this screen where you can input all the relevant details:

  • Value

    • Tip: you can click Show Products and select from your menu of services, if you use this, just as you would when raising a card payment

  • Patient name

  • Internal note (the patient will not see this)

  • Start date

  • End date

    • Either select Never or specify the number of payments to be taken before the DD stops (e.g., after 5 payments)

    • If, for example, you select after 5 payments, the form will show you when the last payment will be taken

  • Patient email address (required)

  • Patient mobile number

    • Mobile number is optional, however we do recommend selecting it along with email, as emails can go to spam and some patients may not check texts regularly.

  • Clinic location (if relevant)

3. Click Schedule Payments and the DD authorisation form will now be sent to the patient

Patient View of the DD Form

When the patient clicks on the link sent to them, they will open a page that looks like this:

How Direct Debit Payments are Processed

To help you understand the timing and flow of DD collections, hereā€™s a simple example that breaks down what happens from the moment a patient sets up their payment schedule - starting with a small authorisation charge, followed by the first and ongoing payments.

Letā€™s say a patient sets up a DD for Ā£100, scheduled to begin on June 1st:

  1. Initial Authorisation (Ā£1): A small Ā£1 transaction will be processed 4-6 days after the DD form is submitted. This acts as an authorisation to verify the bank details.

  2. First Payment (Ā£99): On the chosen start date (e.g., June 1st), the remaining balance of Ā£99 will be collected.

  3. Ongoing Payments (Ā£100): From then on, the full monthly payment of Ā£100 will be collected as expected on the same day each month: e.g., July 1st, August 1st, and so on.

If the form is completed close to the selected start date, the Ā£1 authorisation and the first payment will still be processed in sequence without delay.

Missed DDs, Changes to DDs after Setup, Refunds

What happens if DD payments are missed?

  • If the patient submits the form after the start date, all payments are recovered / processed as expected

    • Letā€™s say a patient's Ā£100 DD was meant to start on June 1st but they only complete the form on September 5th:

      1. Initial Authorisation (Ā£1): The Ā£1 authorisation will be initiated on submission

      2. Authorisation Balance (Ā£99) and Missed Payments (Ā£100): The Ā£99 authorisation balance, and missed payments (July 1st, August 1st, September 1st) will be collected on authorisation completing

      3. Ongoing Payments (Ā£100): From then on, the full monthly payment of Ā£100 will be collected as expected on the same day each month (e.g., October 1st, November 1st, and so on)

  • If the DD was missed due to an error and then resumed, missed payments will not be recovered.

Changes to DDs after set up

Currently, you cannot change the value of a DD once it is active. You will need to cancel a DD and set up a new one.

Refunds

Unfortunately DDā€™s cannot be refunded directly via Coherent at this time. To issue a refund, youā€™ll need to transfer the amount directly to the clientā€™s bank account.

What happens if DD payments are missed?

  • If the patient submits the form after the start date, all payments are recovered / processed as expected

  • Letā€™s say a patient's Ā£100 DD was meant to start on June 1st but they only complete the form on September 5th:

    1. Initial Authorisation (Ā£1): A Ā£1 authorisation will be processed once the form is submitted.

    2. Authorisation Balance (Ā£99) and Missed Payments (Ā£100): The Ā£99 authorisation balance, and missed payments (July 1st, August 1st, September 1st) will be collected on authorisation completing

    3. Ongoing Payments (Ā£100): From then on, the full monthly payment of Ā£100 will be collected as expected on the same day each month (e.g., October 1st, November 1st, and so on)

  • If the DD was missed due to an error and then resumed, missed payments will not be recovered.

Changes to DDs after set up

Currently, you cannot change the value of a DD once it is active. You will need to cancel a DD and set up a new one.

Refunds

Unfortunately DDā€™s cannot be refunded directly via Coherent at this time. To issue a refund, youā€™ll need to transfer the amount directly to the clientā€™s bank account.

Checking the Status of a Direct Debit

  1. Go to the Direct Debit page, where you can view all the DDs your clinic has created

  2. Under the Status column, you will see the various statuses:

    • Authorised = payments are being taken at the scheduled time and interval

    • Authorising = the DD form has been submitted by the client but payments have not started

    • Sent = the form has been created and sent to the client to be filled in

    • Pending = the form has been created but has not yet been sent to the client

    • Void = the DD has been cancelled by the clinic

    • Paused = the DD is paused temporarily but can be reactivated

    • Error = a payment has been rejected, likely due to client cancellation

    • Insufficient Funds = a payment has been rejected because the client has insufficient funds in their bank account (see suggested actions below under Rejected Payments)

DD Actions - Resending, Pausing, Canceling

There are several actions you can perform on a DD, including:

  • Resending a DD authorisation form (e.g., if the patient canā€™t find the email or text sent to them)

  • Pausing a DD

  • Re-activating a DD (after itā€™s been paused)

  • Cancelling a DD

You will find the below Action buttons (displayed as icons) in a column next to the Status column:

  1. Envelope = resend the DD request

  2. Pause / Play = temporarily pause or reactivate a DD

  3. X = cancel the DD and turn to void

Viewing & Managing Monthly DD Payments

Youā€™ll create and manage DDs from the Direct Debit page, but all monthly payments connected to those DDs are recorded on the Transactions page.

Hereā€™s how it works:

  1. Automatic Transaction Records

    When a DD payment is processed, a corresponding transaction is automatically added to your Transactions tab. This includes key client details such as the clientā€™s name and the DD amount.

  2. Filtering by Payment Method

    To view only DD payments:

    • Use the Payment Method filter and select Direct Debit.

  3. Understanding Payment Statuses (not that this is different from a Direct Debit status, above)

    After a payment is taken, it will show one of the following statuses:

    • Paid - The DD payment was successful.

    • Pending - The form has been filled out and the bank is authorising the DD and first payment

    • Rejected - The DD payment failed.

      This typically happens when:

      • The client has insufficient funds (DD status will be Insufficient Funds)

      • The client cancels the DD without informing you (DD status will be Error)

        If a client wishes to cancel their DD, we recommend doing this for them via the Coherent dashboard, rather than having them cancel it through their bank.`

      Please see the below section (Rejected Payments - What to Do) for suggested actions

  4. How to Find Rejected Payments

    To check for any rejected DDs:

    • Go to the Transactions tab

    • Use the Status filter and select Rejected to view all failed DD payments

  5. Finding a Specific Clientā€™s Payments

    Use the search bar to enter a clientā€™s name and view all their associated DD transactions.

Rejected Payments - What to Do

We recommend regularly checking for any rejected DDs to ensure timely follow-up (see Checking the Status of a DD above)

If a Payment Has been Rejected:

  1. Click on the Rewind icon located to the left of the patientā€™s name.

    A popup will appear, showing the reason for the rejection, which is often due to insufficient funds (but could also be because the patient canceled the DD with their bank).

  2. If rejection is due to Insufficient funds:

    1. Call the patient to notify them

    2. Send the patient a payment link by clicking on the Credit Card icon to the left of the Rewind icon

    3. You will be redirected to the Till page, where the appropriate value, name, notes and contact details will automatically populate. Simply click Send

    4. Return to the Direct Debit page, search for the clientā€™s DD, and click the Play button. This will reactivate the DD for the next month.

If you have any questions, please reach out to team@coherenthealthcare.com.

Checking if DDs are Related

When to use:

ā†’ Client has multiple DDs active

ā†’ General bookkeeping and tracking

DD Payouts to your Bank Account, Chargebacks

  • DDā€™s are settled to your bank account in batch along with all other forms of payment (i.e., in T+2 business days)

  • Chargebacks

    • If a payment is Rejected because the client has cancelled the DD without notifying you, there is no chargeback fee

    • If a payment is Rejected because a client has insufficient funds in their account and the DD occurred correctly on or shortly after the scheduled date, there may be a chargeback fee applied

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