Direct Debit


  • The authorization by an account holder which allows recurring payments, such as mortgage payments or insurance premiums, to be withdrawn from their account usually on a monthly basis.

take-away, charge, incur debt


Related Terms and Acronyms

  • Debit Definition,
    • Another name for withdrawal of funds from your account.
  • Debit Card (DC) Acronym, Important,
    • A payment card that is linked directly to a customer's bank account. Some cards require a personal identification number. Others require a customer's signature. A PIN-based or direct debit card removes a purchase price from a customer's chequing account almost immediately. A signature-based or deferred debit card has a Visa or MasterCard logo and removes the purchase price from a customer's bank account in two or three days.
  • Direct Debit Request (DDR)Acronym,
    • Direct Deposit (DD) Acronym, Important,
      • An automatic deposit of wages or benefits to a customer's bank account.
    • Pre-authorized Payments Definition,
      • A way to set up a monthly payment to be automatically paid from a bank account.
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