Payments with direct debit

Introduction

Direct debit is a payment method that automates the payment collection from debtor accounts in other banks

Direct debit scheme is commonly used for regular utility bills, recurring subscription services.

The direct debit scheme can be also used to automatically collect loan repayments. Refer to the Loan repayments with direct debit article for more information.

Definitions

Direct debit main items are:

• Debtor - the legal person or business who pays direct debit and has signed mandate.

• Creditor - a party that who initiates collection of funds from debtor and receives the money. Is responsible for keeping/validating the mandate.

• Mandate - the debtor's permission for a creditor to debit their account at another bank.

• Collection - the process where a creditor requests a payment from a debtor's account based on a mandate.

Below, you will find the following chapters:

Mandates

Collections