Direct Debit
Direct debit is an authorized withdrawal from a bank account, typically set up for recurring payments like utility bills, subscriptions, and loan payments, often initiated via ACH or BACS rails.
Unlike standing orders where you control the payment amount, direct debits allow the recipient to collect varying amounts as needed. This makes them ideal for bills that change each month. You can usually cancel a direct debit through your bank. In Australia, direct debits are processed through BECS.
Related Terms
EFT
Electronic Funds Transfer
EFT is a broad term for any transfer of money from one bank account to another through electronic me...
Standing Order
A standing order is a regular, fixed EFT payment set up by an account holder to pay a set amount to ...
ACH
Automated Clearing House
ACH is an electronic network for financial transactions in the United States. It processes large vol...
BACS
Bankers' Automated Clearing Services
BACS is a UK-based system for processing electronic payments including Direct Debits and Direct Cred...
Need to convert bank statements to spreadsheet format? Try our bank statement converter to easily export your transaction data to Excel or CSV.
The best offline currency converter.
Built for travelers.