Direct debits, also known as Automated Clearing House transfers, are electronic money transfers between bank accounts. Arranging a direct debit with a bank is simple providing you hold an active account. Direct debits can be set up in person, over the phone or on the internet. Sometimes companies that require payment by direct debit will send out forms to make the process easier.
Visit the local branch of your bank with the details of the account you want the money to reach. Explain that you would like to set up a direct debit and provide your account details as well as those of the recipient. Direct debits can be set up to recur on a fixed basis.
Contact your bank by telephone. If you have a telephone banking facility as part of your account package, you can arrange a one-off or recurring direct debit over the phone. You will need to provide your own as well as the recipient's bank details.
Log on to your internet banking service and follow instructions for setting up a direct debit. Sometimes referred to as payments by online banking providers, direct debits can be set up to take place in advance, immediately or on a recurring basis. You will need to provide the recipient's bank details to set up any direct debit.
Things you need
- Bank account
- Recipient's bank details
- Available funds