Things You Need to Know About Direct Debit
The Direct Debit is the most famous mode of payment that is used all over the world. The basic principle of the direct debit is to pay off all the bills automatically in an easier and convenient manner. The account holder of the direct debit needs to give permission for debiting money from their account in this process.
The permission is usually given in the form of a debit slip in order to make sure that the user account is charged. In the debit slip there is information about amount, date, customer signature and the number of times the account is debited.
There are many advantages of direct debit and some of them are given below
Efficient and easier mode of payment:
There is no doubt about the fact that the direct debit is more efficient mode of payment as compared with traditional mode of payment and makes the life of the customer easy.
Easier to setup:
The direct debit is simple and easier to setup as compared with conventional mode of transaction.
Offer control over the process:
The direct debit is designed in such a way that the owners have full control over amount of payment and date of the transaction. It is interesting to note down that there is scheme known as direct debit scheme which provides the account holder protection against direct debit.
Flexible mode of payment:
Direct debit is regarded as flexible and easier mode of payment and fits into the need and requirement of the customer.
Apt and time saving:
The direct debit is appropriate mode of payment and it is also a time saving process as it saves the precious time of the customer.
It is safest and most secure mode of transaction available in the market for the requirement of the user. It removes the need and requirement for online mode of payment. The online mode of payment is susceptible to malpractices and thefts.
Helpful for account holder:
This mode of transaction is helpful for the account holder as it helps them to keep an account of their debit record in an easier and uncomplicated manner.
The direct debit is a type of transaction which is eco-friendly as there is no requirement of paper.
Used for repayment of loan:
It is a useful method of paying back loan to the bank thus is very helpful and handy for the account holder’s need and requirements.
Enhances the speed and efficiency of transactions:
The direct debit helps in speeding up the transaction and the efficiency of the overall process of transaction.
About direct debit scheme:
In the Direct Debit scheme the account holder can terminate or cancel direct debit any time they wish or need. Also in case the cash is not collected properly the bank is entitled to offer total or full refund to the account holder. The person making use of the direct debit scheme has to give written notice in case any type of change is made about payment or about date of transaction.
Image Credit: Howard Lake