Direct debit
Also called: direct debit, authorization, direct debit or direct debit
Direct debit is a method of payment in which the recipient is authorized by the customer of to have money withdrawn from their bank account. This authorization can be for a one-time payment or for periodic use. Direct debits are widely used for debiting subscription fees, taxes and bills. The payment method is also offered by online stores.
The authorization must be issued in writing or by telephone by the account holder. The authorized organization can then issue orders through its own bank to have funds transferred.
Authorizations are also requested via the Internet, but this is not officially valid. Banks that perform direct debit can check the authorization afterwards and, in case of misuse, possibly revoke their customer' s direct debit contract.
In part because of the risk of misuse, customers using direct debit have the right to have debited amounts reversed (reversed) for 56 days.
Direct debit is a convenient payment method for both payer and recipient, but because of the option to reverse, direct debit does not give the recipient absolute certainty that a payment has been made. Also, the direct debit can only be executed if there is sufficient balance in the payer's bank account.
