Direct Debit

What is Direct Debit?

Direct Debit is a financial arrangement where a customer authorizes a merchant to collect payments directly from their bank account. It is a pull-based system commonly used for recurring payments like subscriptions and utility bills.

Why It Matters

• Automates the collection of recurring payments to reduce late or missed transactions

• Lowers administrative costs compared to manual invoicing and check processing

• Provides a convenient “set and forget” payment experience for customers

• Improves cash flow predictability for businesses with subscription models