Direct debit cancellation rates have fallen back to pre-recession levels, as new research finds the volume and total value of donations made via direct debit on the rise.

Income from direct debits in 2009 for 117 charities analysed by Rapidata was up in 2009 to £26m, an 18 per cent rise on 2008 levels.

Meanwhile, the cancellation rate more than halved over the course of 2009; down from 5.63 per cent in January of that year, to 2.63 per cent last December.

The news was not all good, however. While cancellation rates fell, there was a marked rise in the number of direct debit attempts failing due to insufficient funds, increasing by more than a quarter between 2007 and 2009.

The average value of monthly direct debit donations also dropped, albeit slightly, to £11.95 a month in 2009 from £12.26 in the year previous.

The study also found that just one in ten cancelling donors cancel directly with their charity, with two-thirds doing so through their bank instead. The rest were ended as a result of insufficient funds or incorrect bank details.