Direct Debit – the nation’s favourite
It's a fact, consumers love Direct Debit. Making regular payments by Direct Debit has become second nature for millions. Research from 2015 suggests that eight out of ten adults in the UK have at least one Direct Debit and around 71 per cent of household bills are paid this way.
It's easy to see why Direct Debit is so popular.
Firstly, Direct Debit spreads the costs. Paying bills by Direct Debit allows consumers to pay over a period that is agreed with the business they are paying.
Direct Debit is dead easy to set up. It requires just a few minutes to enter in the bank details, the amount and the date the money is to be transferred and that's it!
Direct Debit is guaranteed. Every Direct Debit payment comes with three important safeguards: an immediate money back guarantee from your bank if there is an error in the payment: advance notice if the date or the amount changes: the right to cancel at any time.
Direct Debit can save consumers money. Businesses save money in admin costs when consumers pay by Direct Debit, so some will give discounts to encourage them to use that payment method.
Most of all, Direct Debit gives consumers peace of mind. Payments are made automatically, so bills are never forgotten or late (which can damage a credit record). Anyone collecting a Direct Debit has to pass a thorough vetting process, and if things do go wrong consumers are protected by the Direct Debit guarantee. (See above).
Direct Debit takes away a lot of the hassle of paying bills, and consumers know exactly how much money is going out each month.