Direct debit is an extremely popular way of payment which is used in almost all countries across the world. The main aim is to permit automatic payment of all outstanding bills to make sure the bills are paid conveniently and efficiently. Before a setup can be instigated, the account holder has to give permission that the money can be debited. The permission is normally obtained by the utility company with the help of a payment slip that is then processed in the bank so that the users account can be charged. The particulars on the payment slip comprise customer signature, amount, date, and the number of times an account may be debited. Direct debit may also be setup via telephone by means of a formal script to gather the info and also via the World Wide Web by using an application form. Having the account debited directly has several advantages that are discussed below.

Advantages

* Very easy to setup.
* Efficient and convenient method of payment.
* The customer does not have to fret about late payments or late fee once direct debit is setup.
* It is the most reasonable method of payment as compared to posting a check which would cost cash for the envelopes and stamps.
* The customers have full control over the dates and amount of the payment.

One very important thing that should be remembered is that the direct debit of an individual is protected with Direct Debits Scheme. Every bank takes part in this. This offers the customers a lot of protection. This scheme means the following:

* The individual can cancel a direct debit at any given time he or she chooses.
* The beneficiary has to offer a written notice of any kind of change to payments or dates.
* If the cash is collected incorrectly, the bank has to give a full refund.

Several people confuse direct debits with standing orders. Even though both of them are the ways to setup a regular payment from an account to another, how they are setup and operated is very different. Direct debits are normally setup by the company requesting for a payment. Whereas, a standing order may only be setup by the person who has to pay and is for a fixed amount which has to be paid regularly.

If an individual is trying to take advantage of the benefits of making use of such a system, it's worth to consider certain things which a good provider will offer. The providers are not the same. Some differences that might seem small when one starts off can have a huge effect for an individual in the long run. Here are some of the main things that must be looked:

* The funds must be cleared in three working days.
* The supplier must charge a flat fee and there should be no percent charge.
* The customer must look for a supplier which offers a dedicated account manager. The account manager makes sure the account is running as competently as possible and minimizing the needless charges.

Finally, before starting, it is important that the Direct Debit bureau is well-informed and helpful. This is to ensure that an individual is fully aware of the way to make use of direct debit for a business.

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Direct debit is an excellent way of payment used in several countries across the globe. To know more about this, visit the link offered.