Direct Debit
A Direct Debit lets a company collect money from your bank account automatically.
What it means
A Direct Debit lets a company collect money from your bank account automatically. The amount can stay the same or change each payment, making it useful for bills like energy, broadband and council tax.
Your electricity bill changes every month depending on how much energy you use. The supplier collects the correct amount automatically by Direct Debit.
Why it matters
It helps ensure important bills are paid on time and can sometimes unlock cheaper prices.
The Direct Debit Guarantee protects you if a payment is taken incorrectly, allowing you to claim a refund from your bank.
What's the difference between a Direct Debit and a standing order?
With a Direct Debit, the company requests the payment. With a standing order, you tell your bank exactly how much to send.