Direct debit is a kind of payment orders (instruction to transfer money) from your checking account (current account). The main difference is what Direct debit is an authorization for a person/organization to take payments from your account when they are due (see also standing order).

It authorizes some organization you want to pay to collect varying amounts from your account – but only if you’ve been given advanced notice of the amounts and dates of collection (if the organization you are paying wants to change an amount or date of collection, they should tell you about it first).

Direct Debit is the simplest and most convenient way for you to pay regular and occasional bills such as:

• regular bills for variable amounts - with Direct Debit you can pay all your important bills on time each month (like mortgage, rent, bills for energy, etc.)
• fixed subscriptions or memberships - Direct Debit is the safest and easiest way to make recurring payments like magazine subscriptions or gym memberships
• paying on account – some organizations will provide Direct Debit as an option for spreading your costs or paying on account.