Starting June 1, 2024, Stripe is making pricing changes for Bacs Direct Debit transactions.

What’s changing?

• Fee cap: When your customers pay with Bacs Direct Debit, Stripe charges a 1% fee for each transaction and caps this fee at £2.00. This fee cap will increase from £2.00 to £4.00 per transaction.
• Dispute fee: When your customers dispute a Bacs Direct Debit transaction, Stripe incurs costs. To cover these costs, we will now charge a £5.00 fee for each dispute.

FAQs

Why are these fees increasing?

Fee cap: To cover operational costs for Bacs Direct Debit transactions, Stripe is adjusting the fee cap starting June 1, 2024.

Dispute fee: Stripe incurs costs to handle each Bacs Direct Debit dispute. To cover these costs, we will charge a £5.00 fee for each dispute, starting June 1, 2024.

Which businesses are affected by this change?

These changes apply to all users on Stripe’s standard pricing for Bacs Direct Debit. If you’re on a custom pricing plan for Bacs Direct Debit, there will be no changes to your current pricing.

What can help me offset these costs?

If you handle a significant number of Bacs Direct Debit transactions and seek an alternative payment method, consider utilizing UK bank transfers, which could be more cost effective for certain types of transactions.

How can I prevent disputes?

You can take steps to reduce the likelihood of receiving disputes, such as:

• Communicating clearly and effectively to your customers (e.g., using clear statement descriptors)
• Improving your Stripe integration (e.g., shipping to a verified address only)
• Identifying common fraud indicators and how to get around them (e.g., fake phone numbers or email addresses)

Read more about preventing disputes in our docs.

How can I calculate the impact of these fees to my business?

The best way to calculate the impact these changes might have to your business is to use the Stripe Dashboard.

To understand the impact of changes in the fee cap:

1. Go to the Reports section of your Dashboard
2. Click on “Download” located at the top right hand of the “Balance change from activity” module
3. Export your activity to a .CSV file and ensure that “Payment method type” is selected as a column
4. Starting June 1, 2024, this fee will affect all BACS direct debit transactions

To understand the impact of the disputes fee:

1. Go to the Payments section of your Dashboard
2. Click on “Disputes” on the side panel in the top left
3. Double click on “All disputes”
4. Export your activity to a .CSV file and filter “payment method type” to “Bacs”
5. Starting June 1, 2024, all these transactions will be subject to the pricing changes.

What are the benefits of using Bacs Direct Debit?

Bacs Direct Debit remains a low-risk and cost effective payment method for transactions with high order values or recurring payments. It is a popular payment method in the UK and, based on our research, businesses can see up to a 9% increase in revenue by enabling Bacs Direct Debit.

I’m a Connect Platform. How does this affect connected accounts?

If you use Connect with Standard accounts, these changes will apply to the Stripe fees for your connected accounts. Stripe will automatically notify your connected accounts about the changes. There’s no action needed from you, but you are welcome to share additional communication with them about the change.

If you use Connect with Custom or Express accounts, these changes will apply to your Stripe fees starting June 1, 2024. You are responsible for any updates to your own pricing in line with these changes, and for communicating with your users

Why did I get this notice?

This support page provides you with more details on the notice we sent you describing changes to certain fees. That notice is a legal notice sent to Stripe users, even those who have unsubscribed from optional marketing notices. You cannot unsubscribe from legal notices, but if you’d prefer not to receive any further legal notices from Stripe, you can close your account by following these steps.

Your continued use of Stripe's services after June 1, 2024 is subject to these fee changes. Any termination rights you have under your agreement with us are unaffected by this change.

Do I need to take action?

There’s no action necessary for you at this time and these changes will automatically apply to your business and/or your connected accounts on June 1, 2024.