A direct debit is when you give an instruction to your bank. You are authorising an organisation or a business to collect money directly from your bank account. Only if you have been told the amounts and dates of collection from your account.
Here’s some other information on direct debits:
Though they are similar, standing orders and direct debits have one fundamental difference.
While direct debits are authorised by the customer and set up by a company to move funds from your account to theirs, standing orders are authorised and set up by you to move funds to other people or organisations. They are normally for a set amount and a regular frequency.
To break it down further...
In Direct Debits, the amount moved is controlled by the company you are paying. For example, your water bill changes every month and so the water company has the capability of debiting a different amount from your account each month. If you set up a standing order to the Water company, it would be the same amount each month, or changeable by you as the consumer if need be.
All you need to set up a direct debit is a few personal details at hand.
You can cancel a Direct Debit whenever you want. Read more on how to cancel via mobile banking, online banking, phone or in person.
Everything you need to know about the Direct Debit Guarantee and what it means for you.
Read our dedicated blog that breaks down the most common Direct Debits issues & questions.