Understanding direct debit payment methods
Last updated: May 27, 2026
Overview
Found supports two distinct direct debit payment methods for billing contract subscriptions: Direct debit and Pending direct debit.
Direct debit
A subscription marked as Direct debit has a confirmed direct debit arrangement in place.
When invoices are generated for these subscriptions, the invoice is assigned the direct debit payment method and includes a direct debit collection date (if one has been configured on the billing contract).
The collection date is determined by the billing contract's collection date settings, which can be configured as one of the following:
On the date the invoice is created
A set number of days after the invoice is issued
On the billing period start date
On the billing period end date
Pending direct debit
A subscription marked as Pending direct debit is awaiting confirmation of its direct debit arrangement.
Invoices generated for these subscriptions are created without a payment method and without a direct debit collection date. This prevents the invoice from being treated as a confirmed direct debit until the arrangement has been confirmed.
Once a direct debit mandate is confirmed, the subscription's payment method can be updated from Pending direct debit to Direct debit.
How payment methods work on billing contracts
Both Direct debit and Pending direct debit must be explicitly enabled on a billing contract template before they can be used at the subscription level. A billing contract template holds a list of allowed payment methods, and a subscription can only use a method from that list.
You can identify subscriptions that are pending direct debit confirmation using the Pending direct debit quick filter on the subscriptions table.
Frequently asked questions
Q: What is the difference between "Direct debit" and "Pending direct debit"?
A: Direct debit means the arrangement is active and confirmed. Invoices generated for these subscriptions will include a direct debit collection date. Pending direct debit means the arrangement has not yet been confirmed. Invoices for pending subscriptions are generated without a payment method or collection date.
Q: Will an invoice show a collection date if the subscription is set to "Pending direct debit"?
A: No. Invoices generated from a subscription with the pending direct debit payment method are created without a direct debit collection date. The collection date only appears on invoices where the payment method is confirmed as direct debit.
Q: How do I find all subscriptions that are awaiting direct debit confirmation?
A: Use the Pending direct debit quick filter on the subscriptions table. This filters the list to show only subscriptions with the pending direct debit payment method.
Q: Can I change a subscription from "Pending direct debit" to "Direct debit"?
A: Yes. Once a direct debit mandate has been confirmed, you can update the subscription's payment method using the change payment method action. The new method must be one of the payment methods allowed on the billing contract.
Q: Can I change a subscription's payment method to one that is not on the billing contract?
A: No. A subscription's payment method must be one of the methods that have been enabled on the billing contract. If the method you need is not available, the billing contract would need to be updated first.
Q: Can I change the payment method on a locked booking?
A: No. The payment method on a subscription cannot be changed if the associated booking is locked.
Q: Does updating a subscription's payment method affect existing invoices?
A: When a payment method is updated, a record of the change is added to the invoice timeline so there is an audit trail of when and how the payment method changed.
Q: Does "Pending direct debit" need to be enabled on the billing contract separately from "Direct debit"?
A: Yes. Both Direct debit and Pending direct debit are separate payment methods and each must be explicitly enabled on the billing contract's list of allowed payment methods before they can be used on a subscription.