Go Cardless, an on-line Direct Debit provider, have updated their restricted activities list to include lottery payments.
They have responded to a hospice lottery with the following statement:
lottery payments fall into our restricted activities (https://gocardless.com/legal/restrictions/). This is due to the fact that we deem payments of this nature to be at a higher risk of chargebacks. Whilst we appreciate that we may have provided a service for such use cases in the past, we have recently updated our restricted activities and these apply to all new merchants that sign up.
We wish to act in the best interests of merchants that we serve and to avoid exposure to any unnecessary financial risk for all parties involved. Therefore, where we view a use case to be more suited to an alternative payment method we will advise accordingly.
We apologise for any inconvenience that this will cause you. If you wish to use GoCardless to collect charitable donations outside of your charity lottery, we would be more than happy to facilitate this.