Direct debit

(Known in English as "Direct Debit").

Direct debit allows companies to debit recurring payments from their customers' bank accounts to pay bills or subscriptions automatically.

Direct debit

Direct debit is a payment method that allows companies to withdraw money from their customers' bank accounts in order to collect recurring payments. This procedure is particularly suitable for subscriptions or regular bills such as rent or insurance premiums. Customers issue an authorization to allow the company to make the collection. Direct debit offers convenience and automation, as payments are made automatically without the customer having to transfer money manually.

Direct debit examples

An online streaming service uses direct debit to debit monthly subscription fees from its customers' accounts.

A gym automatically collects membership fees by direct debit from its members' bank accounts.

An e-commerce company allows customers to order products via a subscription and uses direct debit to receive regular payments.

Direct debit FAQ

  • Yes, customers have the right to revoke a direct debit within eight weeks without giving any reason. This revocation option allows consumers to reverse a direct debit transaction if they do not agree with it or there are problems.

  • The direct debit procedure is secure, as companies may only make the collection after prior authorization from the customer. This authorization can be given in the form of written consent or electronically. This ensures that companies cannot debit money from their account without the customer's consent.

  • To set up a direct debit, customers must give the company a direct debit authorization. This can be done by filling out a form often provided by companies. In modern times, this consent can also be confirmed online, making the process even more convenient for customers.

  • Direct debit offers the convenience of automating regular payments. Customers do not have to actively take care of paying bills, as payments are automatically debited from their account. This helps to ensure timely payments and can reduce administrative work.

  • If the account balance is insufficient to debit a direct debit, the transaction will fail. This may result in fees from the bank, depending on the terms of the account. It is important to ensure that there are sufficient funds in the account to avoid unwanted fees and to ensure that direct debit payments are processed properly.