The benefits of Direct Debit
Whether using Direct Debit to pay your household or business bills, the benefits are the same. This applies to the unique protection provided by the Direct Debit Guarantee, offering you the peace-of-mind that, should there be an error in payment of a Direct Debit, you will be entitled to a full refund.
It spreads the costs
Paying your regular bills or business outgoings by Direct Debit allows you to spread costs over a period that you agree with the organisation you are paying.
Many orgaisation offer a range of flexible payment dates, helping you easily schedule your bills. Ask the organisation you are paying what options are available.
Direct Debit payments come with a guarantee. So you're automatically protected by three important safeguards:
- An immediate money back guarantee from your bank or building society in the event of an error in the payment of your Direct Debit. It's important to remember that the Guarantee covers Direct Debit payments. It cannot be used to address contractual disputes between you and the billing organisation
- Advance notice if the date or amount changes
- The right to cancel at any time.
Read The Direct Debit Guarantee in full.
It can save you money
Businesses find Direct Debit just as convenient and efficient as consumers. For this reason, many offer discounts in return for you paying by Direct Debit.
Discounts vary, but overall Direct Debit savings can add up to a substantial amount each year. It pays to check when you get a bill to see how much you can save.
It gives you peace of mind
Direct Debit is one of the safest and most convenient ways of paying your bills:
- Payments are made automatically, so bills are never forgotten, lost in the post or delayed by postal problems and there's no risk of late payment charges
- Organisations using the Direct Debit Scheme have to pass a careful vetting process, and are closely monitored by the banking industry
- The Direct Debit Guarantee protects you and your money in the unlikely event that there is an error in the payment of a Direct Debit, for instance if a payment is collected on the incorrect date, or the wrong amount is collected. It's offered by all banks and building societies that take part in the scheme.
It saves you time
Modern life is hectic – but Direct Debit helps. It takes away much of the hassle associated with paying bills, and means that you can spend more time doing the things you want to. You’ll find it easier to stay on top of your bills, and you’ll know exactly how much money is going out each month. For businesses paying by Direct Debit also means reduced workload and paperwork for your finance department. It really is win-win
You can change to paying your household bills or regular business payments by Direct Debit in just four simple steps. Find out how to get started.