Direct Debit explained
- Charlie Sharma
- Sara Jacobs
What are Direct Debits?
Customer point of view
A Direct Debit is a payment method where a business automatically collects funds directly from your bank account on an agreed date after you authorize the payment with a direct debit mandate agreement.
Your bank will release the funds directly to the business on the scheduled dates without requiring any further action from you.
The business can take variable and one-off amounts through the mandate. However, the company must inform you of the transaction before you are charged.
Direct debits are a convenient way to handle recurring transactions, regular bills, and subscriptions.
Why pay through Direct Debits?
Saves time and effort | Protected and secure | Flexible |
|---|---|---|
Payments are automatic, so you never have to worry about forgetting or missing payments. | Direct debit is the safest form of payment as there is a legal agreement between you and the business. | Instead of paying in one lump sum, it allows for the option to spread the cost. |
How to set up a Direct Debit:
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