The problem
Care plans are steady income, but invoicing 40 clients every month and chasing those who pay late or let a card expire is fiddly. At 5 minutes per invoice and payment check, plus 6 late payers a month at 20 minutes each, that's 320 minutes, about 5.3 hours a month.
What the AI does
GoCardless collects one-off or recurring payments straight from customers' bank accounts by Direct Debit, for a fee per payment and no monthly subscription. Each client signs a Direct Debit mandate once, and the monthly care plan fee is then collected automatically. Standard is 1% + 20p per transaction (capped at $5£4€5A$8C$8), excluding VAT; Advanced (1.25% + 20p) and Pro (1.4% + 20p) include Success+, which the page says automatically recovers up to 70% of failed payments. Xero connects with GoCardless if you invoice there.
A worked example
A two-person web design agency in Leeds has 40 clients on a $67£50€60A$96C$94-a-month care plan covering hosting, updates and backups. It moves every client to Direct Debit through GoCardless.
Before
40 invoices a month plus chasing 6 late payers: about 5.3 hours
After
If payments collect themselves and only 1 or 2 need a call: about 20 minutes a month
What it's worth
About $233£175€208A$336C$329 a month saved, against about $37£28€33A$54C$53 in GoCardless fees. About 5 hours a month saved (320 minutes down to 20), worth about $233£175€208A$336C$329 at an assumed $47£35€42A$67C$66 an hour. Cost: on Standard each $67£50€60A$96C$94 payment costs 1% + 20p, which is 70p, so 40 payments is $37£28€33A$54C$53 a month excluding VAT, with no monthly subscription.
How to set it up
- Sign up for GoCardless, and connect it to Xero if you invoice there.
- Send each care plan client a Direct Debit mandate link with a short note on what the plan covers and the monthly amount.
- Set up the monthly payment for each client and confirm the first collection date with them.
- Check failed payments each month and contact the client the same day.
- Say in your care plan terms what happens to hosting and updates if payments stop.
What goes wrong
- Fees are per payment and exclude VAT: 70p on a $67£50€60A$96C$94 payment on Standard, rising with larger payments up to the $5£4€5A$8C$8 cap.
- Some clients will refuse Direct Debit. Keep a card or bank transfer option for them.
- Failed payment recovery (Success+) is only on Advanced and Pro, at higher fees per payment.
- Direct Debit payers can claim a refund from their bank under the Direct Debit Guarantee, so keep a clear record of what each plan includes.