Direct Debit
Pre-authorized withdrawal from a payer’s account for recurring bills.
Detailed Description
Direct Debit
What is Direct Debit?
Direct Debit is a method that allows organizations to withdraw funds directly from a payer's bank account for recurring payments.
How does one set up a Direct Debit?
To set up a Direct Debit, the payer fills out a mandate form with their bank details and the organization's information.
What are some advantages of using Direct Debit?
Advantages include convenience, predictable payments, improved cash flow for organizations, and reduced risk of late fees.
What are the potential disadvantages of Direct Debit?
Disadvantages include the risk of overdraft fees, errors in withdrawal amounts, and the potential for forgotten payments.
How can a payer cancel a Direct Debit?
A payer can cancel a Direct Debit by contacting their bank and notifying the organization involved, preferably before the next payment is due.