What is Direct Debit?
Direct Debit is a system by which monthly payments are taken directly from your account, whether it is a credit card or normal bank account. You set up this payment system once and then the money automatically comes out of your account at the right time. Direct payment is the preferred payment method of most bill payers because it is quicker, safer and easier than other methods.
One advantage of these type of payments is that it is much safer than paying by cheque or cash, because the money simply comes out of your account and goes to the correct organisation or person. There is no paperwork to deal with, no chance of your money being taken on the way to the bank and no chance of the cheque getting lost. Direct payment is the safest way to pay your bills and make regular payments.
Another reason why Direct Debit is a great idea is that it gives you the certainty to know your payments will be made on time each month. This works both ways, as both customers and retailers know that they will receive their money at the right time. Only errors or non-payment will be reported so you can just get on with your business knowing that your payments are in hand.
Easily manage your payments
If you pay by Direct payment, then you know exactly when your bills will be paid, and if they are fixed payments then you will know exactly how much you will pay as well. This can help you to better manage your money and stay one step ahead when it comes to expenditures. If you pay by Direct Debit for your bills then you will know exactly how much money you need at various points in the month. You can even arrange it so all your Direct Debit payments are collected at the same time. You can also cancel your Direct payment at any point, thereby easily stopping the funds from leaving your account if you want to stop making payment.
No processing fees
Unlike some payment methods, there are no fees associated with Debit payments. Only the money that you owe is taken out of your account, with no extra fees to pay whatsoever. This is different than paying by cheque or other methods where you might have to pay a processing or handling fee to pay your bill. Direct payment is the best way to pay your bills, whether you want to use a credit card or a regular bank account.