A payment system where the payer provides authorization for a payee to take a predetermined amount of funds from a specified account on a regular basis. (e.g., to pay electric bill or make insurance payments.)

A customer may instruct his or her bank to authorize an organization (such as a publisher) to collect regular or occasional payments from that customer's bank account as long as the customer has been provided with advance notice of the collection amounts and dates. Common in Europe; still uncommon in the U.S.

Direct Debit(ing) is a generic term for a payment collection service operated by BACS Ltd, where a subscriber provides an instruction to an Originator to allow payments to be collected from the subscriberâ€(tm)s account. An originator, sponsored by a bank and conforming to the rules of the Direct Debit (DD) scheme, creates and sends an electronic instruction to a subscriberâ€(tm)s bank or building society (via BACS) to collect (debit) funds from the subscriberâ€(tm)s account and pay into the originatorâ€(tm)s account.  This service is most appropriate for making regular payments of fixed or variable amounts. For fixed amounts of a given duration, e.g., a loan repayment, the subscriber will usually sign an agreement that explains the terms of the payments. For on-going payments of variable amounts, e.g., a telephone bill, the originator is obliged to inform the subscriber in advance as to the amount of the payment and the intended collection date. This service is only available within the UK.

A method of payment in which the payer authorizes the payee to take funds from the payer’s bank account, as for paying monthly bills; an instruction to a bank for this transaction.

A payment of an agreed amount collected from a customer's Bank / Building Society account by an Originator on request. The amounts and dates may vary from payment to payment, subject to advance notice being given.

A means of paying for goods and services with a magnetic debit card that authorizes transfer of the funds, via the INTERAC*** Direct Payment network, directly from your account to the merchant's account.

Electronic transfer--usually via ACH--out of an individual's checking (or savings) account to pay recurring bills, such as mortgage payments, insurance premiums and utility payments.

a debit from your ANZ account that you arrange through a merchant or other service provider (eg

a means by which another organisation can debit your account directly

a monthly payment that goes straight out of your bank account and pays the company with which you have set up the agreement

an authorisation from a customer to allow a particular institution to collect sums from his/her bank account, provided that institution gives advance notice of the collection times and amounts

an authority you give to your bank or building society to make regular payments from a current account at the request of, and to the account of, a specified organisation (the originator)

an automatic way of paying regular bills where the amount can vary from one bill to another, for example, telephone, gas, electricity, mortgage repayments, insurance premiums etc

an instruction from a customer to their bank authorizing an organisation to collect varying amounts from their account, as long as the customer has been given advance notice of the collection amounts and dates

an instruction from a customer to their bank or

an instruction signed by you that authorises a company or organisation (e

a payment established through a particular merchant, for example to take up a gym membership you might fill out a form authorising the gym to deduct a monthly fee from your account each month

a pyament we take direct from your bank or buidling society account each month

a real-time, online payment where the amount is directly debited from the account of the customer

a written instruction from you to your bank or building society authorising a third party to collect varying payment amounts from your account

An electronic transaction that is initiated by one party (in this case RaboPlus) to debit an account (in this case your Nominated Bank Account) held at another bank or financial institution.

A method of collecting your monthly repayment of the loan directly from your bank or building society. An instruction is completed and signed by you and sent to your bank or building society asking them to honour the lender's monthly requests for payment from your account

The account holder instructs the bank or building society to comply with requests from a third party to make a series of payments to them.

An instruction you give to your bank or building society to make regular payments from your account to a specific company. Unlike a standing order you agree that the creditor can vary this amount each month.

A system where funds are electronically debited from your nominated bank/building society account.

A method to set up a regular payment to be automatically paid from a bank account.

A means of paying bills, rent, etc. The account holder gives his creditor and the bank authorization in writing to debit the amounts which he owes directly from his bank account.

A form of payment, authorised by signature of a bank account holder, authorising a creditor to withdraw sums from the holder's bank account.

A banking system where a lender deducts payments automatically from a borrower's account.

Direct debit is not quite the same as a standing order, but again it is called an instrument of money transfer. Direct debit is when someone to whom you owe money can claim the money required from your bank account, as opposed to a standing order where the bank initiates payment.

The automatic transfer of money from customer accounts for bill payment.

The automatic electronic debit of the agreed upon payment amount from the designated bank account of the borrower.

This allows an organisation to take money directly for a persons bank account.

Often the cheapest way to pay for gas and electricity. Payment can be made direct from your bank account either in equal monthly instalments throughout the year (Fixed Monthly Direct Debit), or in full payment of each quarterly bill (Variable Direct Debit).

A godsend for the more forgetful among us. Direct debit is a good way of paying regular bills and subscriptions that might otherwise slip your mind. You authorise the payees to take funds from your bank account - and they can adjust what they take as long as they give you notice. They give you a guarantee to protect you if any errors are made.

authorization by the debtor to debit a financial institution account upon receipt of an entry issued by a creditor

An arrangement for a supplier to obtain direct payment for goods or services provided to you by charging your account with a financial institution.

A Repayment method that is debited from clients account on a monthly basis.

A process where a debt (payment) is taken directly from the bank account. Loan repayments may be arranged to use direct debit from the association's account.

Regular electronic debiting of funds from a customer’s nominated bank/building society cheque or savings statement account (or some credit union accounts).

The insurance premium will be taken from your bank account Efficient but still check your renewal premium each year

An arrangement where you instruct the bank to release money from your account to pay bills and other amounts automatically. The billing company requests the money from the bank directly. You are told in advance in writing how much will be taken and the date it will be taken out of your account.

See Direct Payment.

A procedure that enables an organisation to take money it is due directly from the bank account of a person; for example, an insurance company taking monthly payments to insure your house.

A pre-authorised debit on the payer's bank account initiated by the recipient (payee).

A procedure under which an organisation to whom a payment is due claims the amount directly from the bank account of its debtor.

a pre-authorised arrangement to automatically have your credit card bill paid directly from your bank account every month.

This is an instruction to your bank/building society to allow the lender to take monthly mortgage payments direct from your account.

An agreement third party to take money out of your account at certain intervals in return for a service – e.g., you would pay for electricity by direct debit, where the amount will be deducted out of your account each month automatically by the electricity board. This can apply to any service or purchase that will require an amount to be paid every month or at regular intervals.

A direct claim made by the lender on the customer's account, to be paid by the bank on each occasion. The debtor has to sign an instruction addressed to his bank before any transfers can be made. The system can be used for fixed amounts at fixed intervals or for varying amounts at varying intervals. Direct debiting has the advantage of ensuring prompt payment, or if a debit is returned 'unpaid' they will be immediately aware that his debtor is unable to pay. (See Mandate').

Payments are made from a password protected savings or cheque account from a bank or building society directly to the loan account.

The authorization by an account holder which allows recurring payments, such as mortgage payments or insurance premiums, to be withdrawn from their account usually on a monthly basis.

Where the Lender debits (deducts) a payment from client's bank, credit union or building society account.

an instruction from you to your bank or building society allowing someone to take money from your account. The amount of money taken can vary, but you must be told the amounts and dates beforehand. Direct Debits allow you to pay bills automatically from your account on a regular basis.

automatic draft

An electronic payment taken automatically from a customer's bank account by written agreement between the account holder and a goods or service provider. The amounts and dates may vary from payment to payment. Eg, monthly, quarterly or annual bills.

Regular payments that you authorise to be debited (withdrawn) directly from your bank account.

like a standing order, but the amount is not specified in advance (used to pay telephone bills,…).

A method of making automatic payments electronically from a current account. Direct debits may be at fixed intervals - e.g. for a monthly credit card or quarterly fuel bill, and they may be fixed (e.g. a monthly membership fee), or variable, such as for a mobile phone bill. Direct Debits can also be for irregular payments, such as buying shares.

A recurring, (usually monthly) payment for a specific amount drawn from an account.

A means of authorizing recurring payments (e.g., mortgage payments, insurance premiums) to be drawn on an account.

An electronic way of making a payment directly from an individual's to a company's bank account.

The practice where the lender deducts a payment from the client’s account, normally on a monthly basis.

A payment that is made directly from a bank account and is usually an electronic payment. A direct debit is usually a transaction that has been requested by the account owner to take place at a specified time and on a specified date. For example, in Australia companies often use direct debit for payroll processing.

A payment system in which the person paying authorises the payee to take funds from his bank. The instructions originate from the payee and therefore companies can vary the amount that they take from a persons account without them being aware of any changes.

Regular payment system whereby the supplier of a service instructs their bank to collect the requisite sum from the bank of the purchaser of the service. See 'Standing Order' Direct Tax. A tax levied on capital and sources of income over which the taxpayer has no discretion. See Indirect Tax.

Direct debit is a payment method that allows an organisation to instruct their bank to collect varying amounts directly from customers' accounts.