Direct debit
A payment collected by the payee from the payer's account on the basis of the payer's prior consent.
Under PSD2, a direct debit is a payment service for debiting a payer's payment account, where the payment transaction is initiated by the payee on the basis of the consent given by the payer to the payee, to the payee's provider or to the payer's own provider. It is a pull payment built on a standing authority, which makes it a long-established form of mandate. European rules give payers refund rights on direct debits under set conditions, which is part of why the model has lasted.
Agent Minute explains this term on 18 December 2026.
Related terms
Credit transferA payment pushed from the payer's account to the payee's account on the payer's instruction.MandateA checkable statement of what an agent may do for a principal: which action, how much, with whom and until when.Variable recurring paymentA series of payments made under one standing consent, within limits such as a maximum per payment and per period.Direct debit refund rightThe EU payer's right to a refund of an authorised direct debit within a set period, under set conditions.