How to use Direct Debiting

This article explains how funding works for Direct Debits when using different processing options, such as 2-day or 1-day processing.

Updated: November 2023

Knowing how to use Direct Debiting is the key to keeping your payroll running smoothly, and keeping your selected pay day as planned. If you still need to activate Direct Debiting on your account, follow this link.

Here is what you should know about using Direct Debiting effectively:

Info - Blue Block (1)The Direct Debit function does not work with Pay Automation. To find out more about Pay Automation, follow this link

Different Users Could See Different Buttons

DD_Confirm And Debit Button

After Direct Debiting has been activated on your account, you will notice that the 'Finalise Pay' button on your Dashboard has changed to a 'Confirm and Debit' button for Direct Debit Authorised users.

Info - Blue Block (1)* The top view is what a user sees who has not been authorised to confirm Direct Debiting on the pay.

*The bottom view is what a Direct Debit Authorised user will see.

What this means is that your payroll admin needs to be added as a Direct Debit Authorised user for them to be able to see and press the 'Confirm and Debit' button. For a quick reminder on what a user is, follow this link.

This is where to update Direct Debit Authorised user status:


From the Dashboard, go to Settings and select 'Direct Debiting' from the dropdown menu. This will take you to the Direct Debiting Autorisation page where you set up Direct Debiting for this payroll account.

Scroll down the page.

At the bottom of the page you will see the list of users added to this payroll account.

DD_Authorised User

  1. Simply toggle on the users from this list who must be able to 'Confirm & Debit' a pay. 
  2. Update and Save this setting.

When To Fund Direct Debits

Info - Blue Block (1)Pressing the 'Confirm & Debit' button gives Thankyou Payroll the authority to set up this Direct Debit. It does not immediately take the money from the account.

Press this 'Confirm and Debit' button by 6 pm on the 'You Deposit' date to set the Direct Debit up for this pay run. The funds will be taken from the nominated bank account on the 'You Deposit' green box date as per your payment selection.

For example:

  • If you have 2-day processing for this pay run, the funds should be deducted from your bank account 3 working days before the pay day as the funds need to be in our account for 2 working days before the pay day.
  • If you have 1-day processing for this pay run, the funds will be deducted from your bank account 2 working days before the pay day as the funds need to be in our account for a full working day before the pay day.

Info - Blue Block (1)Direct Debiting cannot be used to fund overnight pays. If you need to do an overnight pay, you will have to do a manual transfer.

  • Direct Debit funds must be in the Thankyou Payroll Trust account for at least a business day to ensure that Direct Debits have not been dishonoured and that the pay is actually funded. As we process pays the night before the pay day, overnight pays will arrive after the pay cut off time and we cannot pay your employees if we haven't received your funds by the time the pay is done from our end. Remember: 365 banking is not real-time banking. It still takes time for communication between banks, for funds to transfer, and for reports to reach us. 

Confirm and Debit Cut-off Time

Info - Blue Block (1)If you want a pay to be funded by Direct Debit, you MUST click the 'Confirm and Debit' button by 6 pm on the 'You Deposit' date.

  • What if I miss the 6 pm deadline? Your debit for that pay will not run. The pay will remain open on the dashboard awaiting funds. 
  • What if I press the 'Confirm and Debit' button after the 6 pm deadline? You will see a pop-up message telling you what to do to fund the pay. Follow the instructions on the pop-up.

Info - Blue Block (1)What to do: Do a manual transfer of the 'You Deposit' amount as soon as possible.
Funds deposited into the Trust account will be applied to the lowest open pay on the dashboard first.

Direct Debit Activated for Fees

If you have set up Direct Debiting for fees, you need to do nothing. We will email you on the 10th of the month to advise that we will debit the fees amount on the 20th.

Setting Up Multiple Direct Debit Pays In Advance

Direct Debit pays can be set up in advance which is a useful feature when you are taking some time away from work. However, to have pays run as expected you need to be aware of the Direct Debit pay funding order.

Golden Rule for Direct Debit Funding:  Pays are funded in numerical order, from the lowest number on the dashboard to the highest numbered pay. That means that the lowest numbered pay will remain open untill fully funded before the next pay number up will process. To explain this further (with examples) we have created a dedicated article. Follow this link.

Info - Blue Block (1)Find out more about Direct Debits and managing multiple Direct Debit Pays loaded on the Dashboard by following this link. This article also answers some common questions about Direct Debit pays.

That is it! You now know how Direct Debiting works. Just in time to make this feature work for you.