How to Accept BECS Payments in WooCommerce?

In 2007, 70% of in-person payments in Australia were made using cash. By the end of 2022, that number had dropped to just 16%. This sharp decline highlights a growing preference for digital payment solutions, especially ones like BECS Direct Debit, which simplify recurring transactions.

BECS (Bulk Electronic Clearing System) is a payment system widely used in Australia for processing electronic direct debits, direct credits, and credit transfers. It’s a trusted and regulated method for handling scheduled payments, often used for utilities, insurance, and subscription-based services.

This guide will walk you through how to activate BECS payments in WooCommerce using a plugin. Since BECS payments are primarily used for recurring transactions like memberships or subscriptions, they require advanced configuration using WebToffee’s premium Stripe Payment Gateway plugin features.

Ready to activate the BECS payment system in WooCommerce? Let’s get started!

BECS, or Bulk Electronic Clearing System, is an Australian financial network used to facilitate direct debit, direct credit, and credit transfers between bank accounts.

BECS Direct Debit allows businesses to pull funds directly from the customer’s bank account using the BECS payment system. It’s regulated by AusPayNet and requires customer authorization via a Direct Debit Request (DDR). Once the mandate is in place, businesses can automatically collect payments as per the agreed schedule.

Because payments are withdrawn directly from the customer’s bank account with prior approval, BECS is a great payment method for recurring billing such as utility bills, loan repayments, and subscription-based services.

Also, unlike credit card transactions, BECS payments avoid card network fees and provide a lower-cost alternative for WooCommerce store owners. Plus, automatic scheduling and automatic processing help minimize failed payments and reduce the effort of chasing unpaid invoices.

Now that you have a clear understanding of what BECS Direct Debit is, let’s explore what happens when you configure it in WooCommerce, in other words, how BECS payments work.

Understanding how BECS Direct Debit operates is essential for businesses planning to implement it within WooCommerce. The process may seem technical at first glance, but it’s quite streamlined, especially when integrated with platforms like Stripe using the best Stripe Payment Gateway for WooCommerce.

Here’s a quick look at how BECS Direct Debit works from a business perspective:

• Setting up BECS payments: Businesses begin by integrating the BECS payment method into their payment systems through a bank or a Direct Debit service provider like Stripe.
  Once WooCommerce BECS is enabled and selected by the customer at checkout, the business will collect the customer’s bank details and obtain their authorization through a Direct Debit Request (DDR). This request authorizes the business to debit the agreed amount from the customer’s account on the scheduled dates.

• Initiating Direct Debit payments: On scheduled dates, the business or the payment gateway submits Direct Debit Instructions (DDIs) to the service provider (Stripe). These DDIs contain: the customer’s name and account details, payment amount and purpose, and reference numbers for tracking. 

• Automatic collection & reconciliation: The service provider processes the DDIs through the clearing system, initiating the fund transfer from the customer’s account to the business. Transaction notifications are sent for accounting and reconciliation.

• Handling disputes: If customers experience unauthorized or incorrect deductions, they can raise a dispute through their bank. It’s the responsibility of the business to work alongside the bank and customer to resolve these within the timeframe. This is why it’s important to follow compliance rules set by AusPayNet and your provider.

With this foundational understanding of BECS Payments, we’re now ready to explore the prerequisites you must meet to begin accepting BECS payments through WooCommerce.

Before you can start collecting BECS payments in WooCommerce, it’s important to understand the requirements based on your business’s location. Stripe offers BECS Direct Debit support for both Australian and international businesses, but each must meet specific conditions to get started with BECS payments.

If your business is registered in Australia, you’ll need to meet the following criteria:

• You must have an Australian Business Number (ABN).
• A valid Australian bank account is required to receive payments.
• Partner with a Direct Debit service provider like Stripe to manage the processing and clearing of transactions.
• A formal Direct Debit Request agreement must be signed between you and the provider. This outlines the terms and conditions for processing BECS Direct Debits.
• You must operate within the regulations set by AusPayNet, which governs the BECS system and ensures data and transaction integrity.

If your business is based outside Australia, you’ll need to meet the following criteria:

• You must collaborate with an Australian entity, such as a trusted partner or subsidiary, that holds the bank account receiving BECS payments.
• Utilize payment service providers like Stripe’s BECS Direct Debit features to initiate BECS payments. For WooCommerce store owners, you can easily enable this using the Stripe Payment Gateway plugin for WooCommerce.

So, now when you hear terms like: what is BECS direct debit or BECS payments, you now have the full picture: BECS is a secure, regulated, and automated way for Australian businesses to collect payments right from customers’ bank accounts.

Now, let’s take a look at how to accept Direct Debit payments via BECS in your WooCommerce store.

Activating BECS payments in WooCommerce requires the right plugin and configuration. The simplest and most efficient method is through the Stripe Payment Gateway, which supports BECS Direct Debit for Australian customers.

This Stripe Payment Gateway plugin doesn’t just enable BECS payment; it also lets you accept credit/debit cards, Google Pay, Alipay, and over 20 other payment methods within your WooCommerce store. You can also enable Stripe Checkout, a prebuilt payment page hosted by Stripe to deliver a fast, secure, and conversion-optimized checkout experience.

Let’s walk through the process and how you can configure the BECS payment method using the Stripe plugin in WooCommerce step by step. First, install and activate the premium Stripe payment gateway plugin. Then follow the steps below,

Step 1: Connect Your Store to Stripe

Go to WebToffee Stripe in the WordPress dashboard, and click on Connect to Stripe. Follow the on-screen steps to link your WooCommerce store to your Stripe account. If you don’t have a Stripe account yet, you can register one during this process.

Once connected, you’ll see a screen (like the one shown below), indicating that your store is successfully linked. Keep in mind, you’re in test mode. You can click Switch to live mode at any time from the top right.

Once connected, enabling BECS payments in WooCommerce becomes straightforward and just a few clicks away.

Step 2: Enable the BECS Direct Debit Payment in WooCommerce

Next, in the WebToffee Stripe dashboard, go to Local Gateways and click on BECS to enable WooCommerce BECS Direct Debit.

• Check the checkbox to enable BECS Debit.
• Optionally, edit the title, description, and button text that will appear to your customers during checkout.
• Click Save changes to update the WooCommerce Stripe settings.

That’s it! Setting up BECS payments in WooCommerce is as easy as that. Now, let’s see how WooCommerce BECS payment is activated in your store.

Step 3: Test the BECS Payment Flow

This is an optional but recommended step when setting up different payment methods in WooCommerce. Before going live, switch your Stripe account to “Test Mode” and simulate a BECS Direct Debit payment. This ensures everything works smoothly before accepting real payments.

Step 5: Go Live and Accept WooCommerce BECS Payments

Once you’ve confirmed everything is working, switch back to “Live Mode” and you’re ready to start accepting BECS payments in WooCommerce. Customers will now see the option at checkout and be given the Direct Debit Request for future deductions (in case of recurring billing).

By following these steps, you can easily set up WooCommerce BECS payments, offer more flexibility to your customers, and streamline recurring payment collections for subscription-based products or services.

Adding BECS Direct Debit to your WooCommerce store can offer a substantial upgrade in how you manage and collect payments. Primarily used for recurring billing, BECS payments reduce friction for both WooCommerce store owners and customers by automating the payment process and minimizing transaction costs.

• Lower transaction fees: Compared to credit cards, BECS transactions have significantly lower processing costs, helping you retain more revenue per sale.
• Reduced overhead costs: Payments are collected automatically, eliminating the manual follow-up required with traditional invoicing or one-time payment methods.
• Faster settlements: WooCommerce BECS payments settle within two business days, which is faster than the five to seven days typical of credit card processing.
• Greater convenience: Customers no longer need to initiate payments each time. Once authorized, all future payments are handled.
• Brand trust & recognition: Displaying the BECS Direct Debit option at checkout enhances credibility. For Australian-based shoppers, it offers a payment method that is secure, familiar, and cost-efficient.

As the shift toward automated and digital payments accelerates, integrating BECS Direct Debit into your WooCommerce store gives a strategic advantage. By adding BECS through a reliable provider like Stripe, store owners can offer a secure, low-cost, and automated payment method that benefits both the business and its customers.

That brings us to the end of this guide on WooCommerce BECS Direct Debit. Thanks for following along! We hope you found the article helpful. Let us know in the comments below your thoughts on the same.