Direct debit (DD)

A direct debit is a financial arrangement where an individual grants permission to another party—such as a utility company, landlord, or service provider—to withdraw funds directly from their bank account. This authorization allows the designated party to collect payments on a predetermined schedule, which can be set for specific dates or at regular intervals, such as monthly or quarterly. Direct debits are commonly used for recurring payments, including rent, utility bills, subscription services, and membership fees, providing a convenient and reliable method for ensuring timely payments without the need for manual transfers. The control over the amount and timing of payments remains with the authorizing party, who can modify or cancel the agreement as necessary, offering a balance of convenience and security in managing automatic financial transactions.