Direct Debit

Direct debit allows a third party to take money automatically from a persons bank account on specified dates.

The organization receiving the money is responsible for the organisation of the payments from your bank account. If an incorrect payment occurs, your bank will repay you.

As it is cost efficient for the companies, expect your telecom company, mortgage lender, electricity or water supplier to encourage you to use direct debit.

  This means you do not have to worry whether you are a regular investor in gold or a subscriber to a magazine, as your investment will be taken care of. Ensuring that the business holds responsibility means more protection for you from your bank.

Direct debit is now the standard format for regular payments to an individual or a business, and is simple to both set up and cancel, thanks to many banks ensuring that their direct debit system is streamlined and supported by teams of well-trained support staff.