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Direct Debit

From My Second Brain

A direct debit is used to pay recurring payments, they are controlled by the supplier. Standing orders can be for a variable amount of money and can be collected at any time.

Checks - It's a good idea to check the bank details provided are genuine. This can be checked via an expired cheque or paying in slip.

Issues - Fraud by providing false bank account details and potential for unauthorised funds to be taken from the bank account.

Timing - Payment is usually processed within three working days.

Discrepancies - Employees need to be trained to follow the organisations procedures and only those authorised to setup direct debits should do so.