The fundamental idea of direct debit and bank transfer are similar but there are some minor differences in how the transactions are processed.
ACH(Automated Clearinghouse) Direct debit are ‘pull’ transactions where the receiver of funds (the payee) originates the transaction and pulls money from the payer’s account. This payment method is used typically for referring transactions.
ACH (Automated Clearinghouse) Bank transfers are an electronic transfer of funds between bank accounts within the United States.
| Direct Debit | Bank Transfer | |
| Payment Deadline | Net 0 | Net 30 |
| Who Initiates payment? | Aircall | Customer |
| What is needed to set up? | Completion of Mandate | Aircall Bank Details |
| How are funds disbursed? | Funds are debited from your account automatically by Aircall, and then applied automatically to the invoice. | Funds are transferred from your bank account to Aircall's bank account at the customer's initiative and then applied manually to the invoice. |
| What is the processing time? | Can take up to 10 days for the payment to process and label the invoice as "Paid in Full" | Funds are released from customer's bank in a matter of 24 hours but can take up to 5 days to be applied to the invoice. |
| Who is eligible? | Limited availability depending on location. Check this knowledge base article to see if you are eligible | Requires approval |
Additional resources:
How do I set up my Direct Debit payment?
Best practices for bank transfer payments
What is a valid proof of payment?