To owe an account is to write down an amount of money in the debit of a bank account, which means a decrease in the balance available to the holder.
The basic direct debit or CORE is a payment instrument that allows payments to be made electronically and automatically between legal entities and / or individuals through a charge in the payer’s account.
Through this method, a company is normally given services – water, town hall, telephone, gas, insurance, etc. – to automatically charge the account without customer mediation. This function can also be used by another bank to enter an amount of money from another entity at no cost.
Once the debt is collected, if it is less than 3,000 euros, there are 30 calendar days + 2 business days to undo the payment . Although you can charge commission for an account debit, it is normal to be free.
Account debts have their origin, for example, in the payment of a receipt from any service company that is domiciled in the account of an individual or company, or by a withdrawal of cash made through an ATM of the entity .
There are four participants in a debit account operation:
- The creditor and his bank.
- The debtor and his bank.
Characteristics of the debit in account
- These are operations that are carried out in Euros.
- Both accounts must be located within the European Economic Area(EU, Iceland, Liechtenstein, Norway) and additionally possible for accounts of affiliated entities in Switzerland and Monaco.
- Equal conditions and rates for domestic and cross-border operations in the European Economic Area, regardless of the amount of the operation.
- The IBAN Codemust be the identifier of the beneficiary account. SEPA instruments necessarily require the use of IBAN even for domestic operations, which is why it replaces the Client Account Code (CCC).
- The BICwill identify the beneficiary’s financial entity.
- The beneficiary has to receive the amount of the transfer no later than the next business day on the date of issuance by the ordering entity.