4. Create a Funding Source (direct debit)

Background to Funding Source

“Funding source” is the money origin during transfer. It should be taken as a certain abstraction, which was created to have a consistent format for transferring money: it does not matter whether the origin is a wallet or Direct Debit, clients always refer to some funding source entity during the payment or schedule creation.

Customate will automatically create a set of initial, wallet-related funding sources for clients, after the profile verification. Any other funding source types should be created manually (“wallet” type can not be created via Api call or in any other way except by Customate itself).

Direct Debit Funding Source

Related endpoints reference.

You will need to tell Customate the details of the UK bank account to establish as a Direct Debit funding source. Funds can then be pulled from that external bank account.

Direct Debit funding source requires verification before clients can use it for schedules or payments. The verification process is started automatically by Customate service itself and doesn’t require any additional actions from the client/owner side. Due to delays on the bank side, Direct Debit verification usually takes 7 calendar days.

Clients can not specify a funding source that belongs to another profile during payment or schedule creation.

Direct Debit funding source creation and verification flow

Any payment or schedule requires a funding source and payee.

Some of these entities will be created automatically by Customate as soon as the related profile is verified (i.e. those that are assigned automatically to the wallet to identify the profile when sending / receiving funds).

Other funding sources and payees should be created directly via a call to the appropriate endpoint (e.g. a direct debit funding source which enables GBP funds to be pulled from an external funding source (i.e. UK bank account) and transferred to the profile.) This diagram shows the Direct Debit funding source creation and verification flow.

Direct Debit funding source creation and verification

Direct Debit funding source validation codes

The codes below may occur during Direct Debit funding source’s validation and will be assigned to funding source record:

{ ... "title": "Sample DirectDebit Source", "validation_status": "invalid", "validation_issue_code": "dd_canceled_by_payer", "validation_issue_message": "Instruction cancelled", "currency": "GBP", "type": "direct_debit", ... }

 

Validation code Additional information
dd_canceled_by_payer Payer has instructed the paying bank to cancel Direct Debit initialization. Client must liaise with the payer to agree the payment method for collection of any outstanding funds.
dd_payer_deceased
dd_account_transferred Account transferred to another bank/building society. New Direct Debit source should be created with updated bank details.
dd_no_account Account number is not recognised at the paying bank. Client should check Direct Debit information and/or liaise with the payer.
dd_no_instruction Instruction does not exist on the paying bank’s database. Client should check Direct Debit information and/or liaise with the payer.
dd_account_closed Payer has closed his account for an unknown reason. New Direct Debit source should be created with updated bank details.
dd_invalid_account_type Paying bank does not allow Direct Debits on this type of account. Client will need to obtain new account details from the payer and create a new Direct Debit source.
dd_bank_rejects Paying bank does not allow Direct Debits on this account. New Direct Debit source should be created with updated bank details.
dd_canceled_by_bank Paying bank has cancelled the Direct Debit initialization. Customate cannot collect funds via Direct Debit on this account.
dd_invalid_account_details Direct Debit initialization faced invalid account details. Customate has verified the sort code and account number, but bank service declined them.
dd_transaction_not_allowed Paying banks have expressly disallowed Direct Debit initialization. New Direct Debit source should be created with updated bank details.