h2g2 The Hitchhiker's Guide to the Galaxy: Earth Edition

i dont understand how the recipient of a direct debit could get the payment out more than once, before and after a national holiday eg. cux doesnt the bank keep record of whether it's been done or not. and why do ppl use direct debit and let the other person access your account. they could obviously get the utility bill and tell the bank themselves to pay the money ie direct credit.

The bank know that you've given them permission to take from your account, but they don't know the amount or how often. They'll record it on your statement, of course but they won't stop the payment unless you tell them to in advance.

Direct debit gives far more flexibility. So your mobile phone bill, for example, might be £20 one month but £30 the next. With a direct debit the mobile phone company can take the exact amount. With a standing order you can only specify one amount, so one month it might be too much, and the next month too little.

A direct credit is always another option, but it means that for each bill the bill payer has to manually instruct the bank to pay the amount. Lots of people would rather have the convenience of not having to think about it as the payment is automatic.

It about convenience vs control.

Does that help?

Vip