The problem
Regulars who pay by bank transfer at the end of the month pay when they remember. If a walker with 14 regulars spends 3 minutes matching each payment and 25 minutes chasing each of 6 late payers, that's 42 plus 150 minutes, about 3.2 hours a month, with money arriving on 14 different days.
What the AI does
GoCardless collects payments straight from customers' bank accounts by Direct Debit, for a fee per payment rather than a subscription. Agree a fixed monthly fee with each regular based on their usual walks over a year (for example 2 walks a week x 52 weeks, divided by 12, at your walk price), and send them a GoCardless link to set up the Direct Debit. The money is collected on the same date each month. Extra walks and holiday credits go on the next month's amount, and you check failed payments yourself. The Standard plan doesn't include Success+, the automatic recovery of failed payments, which is on Advanced and Pro.
A worked example
A dog walker in Swindon has 14 regulars paying an average of $173£130€155A$250C$244 a month for 2 to 3 walks a week. Six of them pay late most months.
Before
14 payments matched at 3 minutes and 6 late payers chased at 25 minutes: 192 minutes, about 3.2 hours a month
After
Collection automatic, with about 30 minutes a month checking failed payments and adjusting extras: 0.5 hours
What it's worth
About $72£54€64A$104C$102 a month saved, at an assumed $27£20€24A$38C$38 an hour for 2.7 hours (3.2 minus 0.5). Standard's fee is 1% + 20p per payment: 14 x ($1.73£1.30€1.55A$2.50C$2.44 + 20p) = $28£21€25A$40C$39 a month, or about $33£25€30A$48C$47 with VAT if you can't reclaim it. The net is about $39£29€35A$56C$55 to $44£33€39A$63C$62 a month, and the money arrives on one date.
How to set it up
- Work out each regular's monthly fee from their usual walks across the year, and write down how holidays, illness and extra walks are handled.
- Open a GoCardless account on the Standard plan and check the fee against your typical monthly amount.
- Send each regular a link to set up their Direct Debit, with the fee, collection date and your terms.
- Each month, add extra walks or holiday credits to the next collection, giving the notice your terms promise.
- A few days after each collection date, check for failed payments and contact those clients yourself.
What goes wrong
- Failed payments aren't recovered automatically on Standard; Success+ needs Advanced at 1.25% + 20p a payment.
- Changing the amount or date of a Direct Debit needs advance notice to the client, so build the notice period into your terms.
- A fixed fee that drifts away from the walks actually done causes disputes. Review each regular's fee every few months.
- Fees are per payment, so a client paying weekly runs up four or five 20p charges a month instead of one.