Talk:Direct debit

Disadvantages

What is the reason why people don't like Direct Debit? Its the easiest and hassle free mode of payment. I want to know the feedback on Direct Debit. —Preceding unsigned comment added by 203.110.81.246 (talk • contribs)

Some people worry about their accounts possibly being overdrawn. --JD^talk_email 21:20, 12 June 2006 (UTC)

This article and its comments provide some other reasons why people don't like DD. It's very easy for companies to overcharge without customers noticing or doing anything about it. The company has all the control over the debit, as opposed to a standing order where the customer is in control. I wonder whether that webpage should be linked from the main article? --AlexChurchill 14:45, 9 February 2007 (UTC)

There is a simpler reason for disliking Direct Debit. When a company provides a service they require payment and, if you are happy with the service, you pay them. If you are not happy with the service you have a degree of power over them because payment has still not been made and you still have control over that payment. If there is a problem it is for the company to sort it out. It keeps them on their toes. They also have to think twice before they put their fees up because you may go elsewhere. With Direct Debit because all that is required for an increased charge to be applied is for you to do nothing, the application of new charges is much simpler for the company.

Direct Debit shifts the onus for making sure that everything has been conducted correctly from the company to the customer. With Direct Debit it is the customer who has to constantly check whether the correct amount has been debited from their account. It is the customer who has to remember to cancel the arrangement at the end of a contract. It is the customer who has the extra hassle of getting things put right if the company takes too much money out of their account. Obviously companies like it that way. That is why they have been pushing their customers very hard to give up the old style payment methods (monthly cheques/cash/direct debit) in favour of their preferred method. It's true that Direct Debits are simpler all round when they go right but when they go wrong it is the customer's headache and not the company's. —Preceding unsigned comment added by 81.187.233.172 (talk) 22:57, 7 May 2011 (UTC)

Cancelling a Direct Debit

When I asked my bank to cancel a DD, they advised me that the company (in this case an Internet Service Provider) belonged to a DD guarantee setup, which meant they could re instate the DD without my authority. The bank told me this was to stop people cancelling DDs just because they felt like it.

The DD website does not mention this at all.

So what is the exact situation, can I cancel a DD safe in the knowledge it stays cancelled? —The preceding unsigned comment was added by Dalavich (talk • contribs) 18:29, 29 January 2007 (UTC).

Interesting. When I asked about getting some money returned on a DD, my UK bank told me that they could refund the money if they were notified within 24hrs, and "usually up to three days". That's hardly satisfactory when bank account statements are only sent out monthly. This looks like an intriguing story. Samsara (talk • contribs) 23:04, 30 January 2007 (UTC)

I'll phone my bank and ask them for the exact term they used about DDs. But the ISP was Freeserve, and if I did not cancel the DD with them too, they could re-instate without any intervention. Although the bank was not too sure how to respond, when I told them I'd move bank if they reinstated this DD! Dalavich 20:52, 9 April 2007 (UTC)

Fair use rationale for Image:Direct Debit logo.gif

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Why does Debit Note redirect here?

Although there are similarities between debit notes and direct debits, I do not think they are the same thing at all, however, I do not know enough about Debit Notes to write a seperate article. —Preceding unsigned comment added by Mrsrargsbrother (talk • contribs) 14:47, 1 October 2007 (UTC)

A debit note is the opposite of a credit note but is also, I believe, a foreign translation for a direct debit mandate. —Preceding unsigned comment added by 193.95.165.190 (talk) 10:19, 4 October 2007 (UTC)

A debit note is NOT a direct debit instruction. Debit note is an informational financial statement of debit or credit incurred. These are usually used between trading parties who have bidirectional cash flows between them - i.e. two law firms in different jurisdictions who have a relationship in which they carry out services on the other's behalf. Usually, invoices are not issues, merely credit and debit notes, the sum of credits and debits (the bulk of which cancel out) being settled by direct invoicing on a periodic basis or by debiting from client account funds held in trust. —Preceding unsigned comment added by 213.70.217.172 (talk) 12:02, 5 June 2009 (UTC)

Adverts in external links

There are several links listed that redirect through to 3rd party DD service companies (managing payments etc). These companies, or these types of companies, are not listed anywhere in the article or discussed and are not necessary to illuminate the concept of a DD. They are just adverts designed to look ~official (directdebitbureau.co.uk?) so that you will click through (as I just did). If no one objects I will remove these. FloreatAntiquaDomus 18:38, 27 September 2010 (UTC) —Preceding unsigned comment added by FloreatAntiquaDomus (talk • contribs)

Cancelling Payments

The article states that:

"Banks operate a direct debit guarantee.[4] In this, if a customer disputes an amount that has gone out of their account by direct debit, they can contact their bank and ask for an immediate refund".

This is at odds with the stance of both BACS and LloydsTSB, which both state:

"If the originator or the bank/building society makes an error, the customer is guaranteed a full and immediate refund of the amount paid."

There's quite a difference. Both BACS and LloydsTSB lay the burden of proof by the customer. The article should be clear about this. Preceeding unsigned comment added by 82.134.237.45 at 11:00, 29 January 2013‎

That's not the only error in the UK section. The first line says "In the United Kingdom, a direct debit requires the customer to authorise a direct debit instruction with their bank." This gives the impression that the customer must communicate with the bank, which is contradicted by the second sentence: "This task is carried out via the service user (payee)." In fact, the system is no different to that described for Germany afaics.

Knowing the traditional insistence on signing a DD form I was amazed recently by two instances of organisations taking my bank details over the phone and not contacting me with any clear confirmation of the instruction. Talking with my bank I discovered that the person I was talking to now resolutely refuses to share her bank account number over the phone because the open-ended nature of the commitment. The description of the process by BACS says "The organisation will give you advance notice of collection dates and amounts, whether you set up a Direct Debit by telephone, internet or using a paper form". I haven't yet received such for either transaction - the second was only today, so I'll have to wait and see. It's no wonder that fraud is increasing. I'll try and correct these errors. Chris55 (talk) 17:24, 30 April 2013 (UTC)

History?

There is little info anywhere in here concerning when automated debit payments started in each territory, nor when any significant changes were made to services; so this needs adding. Jimthing (talk) 17:11, 8 October 2013 (UTC)

I second that. The article is also now completely out of date as the EU has ended the Direct Debit system in Europe. The ECB states on their website's SEPA - Single Euro Payments Area page under Migrating to SEPA, that:

"The deadline for the euro area is 1 February 2014 and for non-euro area Member
 States 31 October 2016. As of these dates, the existing national euro credit 
 transfer and direct debit schemes will be replaced.". 

This deadline was moved in January to August but some member states have already implemented the original timetable (e.g Finland announcement - Direct debit ending). LookingGlass (talk) 10:06, 6 February 2014 (UTC)

B2C?

Why does the B2C acronym get expanded as "Business to Commerce"? As far as I know, it's either "Business to Customer" or as I've seen it on rare occasions, "Business to Consumer", but never ever "Business to Commerce". — Preceding unsigned comment added by 194.126.220.240 (talk) 05:20, 18 August 2015 (UTC)

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Direct debit

Explain further The process of direct debit 116.240.87.130 (talk) 05:15, 17 June 2022 (UTC)

What fees are there?

There's very little on fees in the article. What rates are charged in various countries, and does the payer and/or payee pay? How do the fees compare to other processing fees for other systems, like credit cards, debit cards, and paypal? Housecarl (talk) 04:46, 1 December 2022 (UTC)