What is a Direct Debit & how does it work?

Published on: 2024-10-22 14:53:24 +0100

A Direct Debit is the simplest and most convenient way for you to pay both recurring and occasional bills. Some recurring bills might include an electricity bill, phone bill, council tax, and many more. The great thing about Direct Debits is that the merchant can automatically change the bill depending on usage, for example, if you use more or less electricity in a given month. In that scenario where your bill amount changes, the merchant will let you know in advance, so you have great control. 

The Direct Debit feature is available on your Pockit account by default, so you won't need to do anything from your account to activate it. 

All you need to do is give the relevant company you want to set up the Direct Debit with your Pockit sort code and account number and agree on a date that they will take this from your account.

Direct Debits are secure, and are covered by the “Direct Debit guarantee”. The guarantee protects you in the rare event that there is an error in the payment of your Direct Debit, for instance if a payment is taken on the incorrect date, or the wrong amount is collected. It cannot be used to address contractual disputes between you and the billing organisation.

Direct Debit guarantee:

1. If there are any changes to the amount, date or frequency of your Direct Debit the merchant will notify you (normally 10 working days) in advance of your account being debited or as otherwise agreed.

2. If an error is made in the payment of your Direct Debit, by the merchant or your bank, you are entitled to a full refund within 2 working days of the amount paid from your bank

3. If you receive a refund you are not entitled to, you must pay it back when the merchant asks you to

You can cancel a Direct Debit at any time by simply contacting the merchant directly or cancelling this from your online account