What is a Direct Debit?
A Direct Debit lets your bank or building society know that businesses and services can take money from your account on a set date.
People use Direct Debits to pay monthly bills and make one-off payments. They’re a simple way to manage regular payments, such as:
- Utility bills
- Gym memberships
- Mobile phone contracts
- Monthly subscriptions
A Direct Debit is different to a standing order. With a standing order, you set up the payment for the exact amount. With a Direct Debit, the payment is set up by an organisation and the exact amount you pay can go down or up.
Once you have cancelled a Direct Debit, you need to let the recipient know. Otherwise, they may think there’s been a mistake and set up the payment again.
If you don’t see an option to cancel your Direct Debit or receive an error message, contact the company directly and ask them to cancel it.
If you notice any unfamiliar Direct Debits taking money from your account, contact your bank as soon as possible.
The content on this page is for reference and does not constitute financial advice. For impartial financial advice, we recommend government bodies like the Money Advice Service.