---
term: "Direct debit"
category: "Agent payments"
url: https://agenticopenfinance.com/glossary/direct-debit
source: AgenticOpenFinance glossary
---

# 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.

Related terms: [Credit transfer](https://agenticopenfinance.com/glossary/credit-transfer.md), [Mandate](https://agenticopenfinance.com/glossary/mandate.md), [Variable recurring payment](https://agenticopenfinance.com/glossary/variable-recurring-payment.md), [Direct debit refund right](https://agenticopenfinance.com/glossary/direct-debit-refund.md)