Okuzeka
Finance & Banking vocabulary · Payments & Cards

Direct debit

Meaning in finance & banking, with examples

nounCommon term

In finance & banking, direct debit means: An instruction that lets a company collect regular payments, such as bills or subscriptions, directly from your bank account.

In Turkish: otomatik ödeme talimatı, otomatik tahsilat

How it is used

Common in UK and European banking. Customers set up or cancel a direct debit, and the company collects payment by direct debit. Unlike a standing order, the company decides the amount and date within the agreement.

Example sentences

  1. I pay my electricity bill by direct debit.

  2. The gym's direct debit failed because there wasn't enough money in the account.

Common collocations

  • set up a direct debit
  • cancel a direct debit
  • pay by direct debit
  • direct debit mandate
  • wire transferAn electronic transfer of money from one bank account to another, often between different banks or countries.
  • current accountAn everyday bank account for receiving a salary, paying bills and making card payments. It pays little or no interest, and the money can be used at any time.
  • transactionA single movement of money, such as a payment, transfer, deposit or withdrawal, recorded on an account or card.
  • bank chargesFees that a bank takes for its services, such as account maintenance, transfers, overdrafts or replacing a card.

More terms: Payments & Cards

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This page explains English vocabulary for learners. It is not financial advice.