Direct debit

Permanent direct debits are called bank direct debits for a bank to make payments on a regular basis in the account of a subject.

Direct debit is what is called automatic payment of receipts , expenses, purchases, financing and the like of a personal or commercial subject. It is a service offered by the banking entities to pay amounts on a regular basis against the subscriptions of external services, for example, receipts from the gym, a magazine, the payment of a loan and supplies such as electricity, water, telephone … for this, just have a checking account and give permission to the receiving entity to direct payments. These payments can be regular (same day every month, quarters, etc …) or irregular, when payments occur once a transaction has been made, of equal or different amounts.

 

What are their characteristics?

  • They are payable upon submission
  • The complete customer data must be recorded
  • There must be an express order of bank receipt consent

Naturally, since it is a banking service, the person can modify conditions and payments and refuse orders if they deem it appropriate, or does not conform to the contract. Various figures come into play:

  • Computer:is the one that issues direct debits (gym, light company …)
  • Presenter:is the one who performs the act of presenting the direct debit, usually coincides with the payer or may be a subcontractor of the previous one.
  • Client or debtor:who must make the payment, that is, the account debit.
  • Debt: it  is the bank receipt to pay / collect.

 

Why does direct debit arise?

The direct debits were expanded as a way to simplify the procedures and transactions ofperiodic payments between customers and services, a safe and convenient way to attend to payments automatically and also a way to maintain greater banking control of finances and payments.

This figure largely replaced payments in face-to-face cash, and the figure of the bill collector, who was responsible for collecting the income of the payer, and who were usually subcontracted in exchange for a fixed commission on the amount collected.

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