How do direct debit accounts work?
Have you ever set up a direct debit payment? This is a payment method that users can request from the bank to pay recurring bills — those charged every month.
If you've ever forgotten to pay a bill or if you often get confused when remembering your payment due dates, direct debit could be a good alternative for you.
What is direct debit?
Direct debit, as the name suggests, is an automated way of paying bills. This method is used for recurring payments, those that are made every month. Some examples of this type of account are:
- light
- water
- safe
- health plan
- Pay TV
- internet etc
According to the definition in the Central Bank's Simplified Glossary of Financial Terms, this is a “method of paying expenses in which the amounts due are withdrawn directly from the customer's current account.”
This means that, when signing a service contract with a company, the customer who requests automatic debit, or account debit, as it is popularly called, does not need to worry about issuing a payment slip every month.
This is because when the contractor issues a bill in the person's name, the amount will be automatically debited from the account on the scheduled date. However, there is no need to worry: for this service to be carried out, the client must make a request to the bank, as we will see later.
Is it worth using?
But is it worth opting for direct debit? Probably yes. The service guarantees more convenience and saves time, since the customer will not need to print the payment slip and go to the bank or lottery shop to pay, nor will they need to use internet banking to do so.
In addition, there are companies that offer discounts on services when payment is made this way, since the risk of default is much lower for the contractor. The savings are around 5% to 10%.
However, you need to be careful. Although direct debit provides convenience, it is necessary to have a minimum of financial planning for it to work well. It is the customer's responsibility to ensure that there will be the necessary amount of money in the account on the day of payment.
Otherwise, the amount may be deducted from the bank's special check – which has high interest rates – or the service may be cut off due to non-payment.
How do I register direct debit payments?
The request must be made directly with your banking institution or with the service provider. It is worth noting that almost all major banks have this functionality, as do some digital banks, as is the case with Banco Inter.
In addition, the contracted company must be authorized by the Central Bank to receive payments via direct debit. You can also make the request via Internet Banking or SAC.
If you don't like it, don't worry: you can request cancellation at any time.
So, did you already know all these details about direct debit? As we have seen, this is a payment method that guarantees agility and convenience for both users and service providers.
