# What is Direct Debit? How It Works for SaaS Subscriptions (2026)

DevFeed: [What is Direct Debit? How It Works for SaaS Subscriptions (2026)](<https://devfeed.tech/articles/what-is-direct-debit-how-it-works-for-saas-subscriptions-2026-10441.md>)

Original publisher: [Read original article](<https://dodopayments.com/blogs/what-is-direct-debit/>)

Author: Aarthi Poonia

Published: 2026-06-05T00:00:00Z

Content type: tutorial

Language: en

Sources: [Dodo Payments Blog](<https://devfeed.tech/sources/dodo-payments-blog.md>)

Topics: [Software as a service](<https://devfeed.tech/topics/saas.md>), [API](<https://devfeed.tech/topics/api.md>)

Tags: [2026](<https://devfeed.tech/tags/2026.md>), [ach](<https://devfeed.tech/tags/ach.md>), [banking](<https://devfeed.tech/tags/banking.md>), [cost](<https://devfeed.tech/tags/cost.md>), [glossary](<https://devfeed.tech/tags/glossary.md>), [guide](<https://devfeed.tech/tags/guide.md>), [payments](<https://devfeed.tech/tags/payments.md>), [saas](<https://devfeed.tech/tags/saas.md>), [subscriptions](<https://devfeed.tech/tags/subscriptions.md>)

## AI overview

A guide to direct debit for SaaS subscriptions, covering mandate authorization, payment initiation and settlement, regional bank rails such as ACH, SEPA Direct Debit and BACS, failure handling, and trade-offs compared with card payments.

## Source excerpt

Direct debit explained for SaaS founders. How ACH, SEPA Direct Debit, BACS, and Faster Payments work, when to use direct debit over cards, and the trade-offs.