Is a Subscription the same as a Direct Debit?
Learn the difference between direct debit and subscriptions and which is best for you.
A 'Subscription' is generally not the same as a Direct Debit. Both terms have the same outcome (a recurring debit from someone's account), however, Direct Debit is a UK concept invented by Alastair Hanton in 1964. Subscription payments today tend to refer to credit or debit card Subscriptions, whereas a Direct Debit (which requires a Direct Debit Mandate) is a slower, older technology which still works well and is typically associated with paying rent, utilities - but was first invented as a means for Ice Cream sellers to pay varying amounts to the suppliers, yum🍦!
Are Subscriptions a debit or credit
Subscriptions are a debit. This old language comes from accounting- a debit is taking money, and a credit is adding money. For example, you debit ('take') money from one account and credit ('add') money to another.
How do I process a subscription payment?
To process a subscription payment you need subscription management software like Subscribie. It will collect and process subscriptions from your customers automatically.
We've written a complete guide to collecting Subscriptions, take a look!