What is Direct Debit?

Direct Debit allows your credit card company to take, according to your instructions, a variable amount of money from your bank account each month to pay all or part of your outstanding credit card balance.

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Paying by Direct Debit is a very quick and easy way to make payments, and also reduces the time it takes for the credit card company to process your payments. To set up a Direct Debit you need to complete and sign a Direct Debit mandate form, this will give the credit card company permission to take payments direct from your account.

Direct Debit differs from a standing order in that the other party can vary the amount they take from your bank. With a standing order the amount is set in stone until you say otherwise. You are still in ultimate control of your Direct Debit and can cancel it at any time by either contacting your credit card issuer, or contacting your bank.

When setting up your Direct Debit, you have 3 options:

Set your Direct Debit to pay the minimum amount off your credit card bill each month - i.e. 2 % of the outstanding balance or 5, whichever is the greater.
Set your Direct Debit to pay off the total outstanding balance every month.
Set your Direct Debit to pay an agreed amount each month there is a balance on your account - i.e. a fixed amount which must cover the minimum payment.

* You will only be able to set-up one Direct Debit for your credit card account from one bank account at a time.