Direct debit is one of the easiest ways to manage ongoing payments, and the setup process is incredibly easy with a debit card on hand.
Ongoing fees for subscriptions, memberships and even some bills can be processed as recurring transactions using your debit card, saving you the hassle of remembering to make payments.
Setting up direct debit is a relatively simple process between you and the merchant or organisation that will be paid.
Some organisations, like charities, will require a form to be filled out consenting to regular charges. You will also need to provide the following information:
- The name on the debit card
- The debit card number
- The expiry date
- Whether it is a MasterCard or Visa debit card
In some cases the three-digit security code on the back of the card may also be requested for extra security. Setting up direct debit can be done in person, over the phone or even online in some cases and once these details have been processed the recurring transactions will come into effect.
Managing Direct Debit Payments
The downside to setting up recurring payments via your bank account or debit card is that it can leave you short of money when you need it, increasing the risk of overdrawn fees.
So before you decide to set up direct debit, it is a good idea to ask how frequent the charges will be and what amount will be taken out of the account so that you can keep track of these charges.
Some people also keep a bit of extra money in their debit card account to act as a buffer if they happen to be short of funds for a particular month.
Recurring transactions make it easier to manage your banking and other finance needs, while also providing convenience and potential rewards in the process.
By being aware of the process and keeping all the details in mind you will be able to get the most out of this service and better manage your money at any time.