A direct bill enables another party (the initiator), once authorised by you, to take payments from owner nominative bank account electronically.
The benefits
A direct debit can be for a regular fixed total (e.g. rates or insurance payments) or for variable amounts (e.g. power billing payments).
To initiator of the payment lets thee knows in advance the amount and date the payment will occur.
It less your administration the removes the possibility of overlooking (missing) a payment.
Things to keep in care
Most banker accounts can be used for direct burdens not certain savings and deposit accounts can not allow withdrawals.
The initiator does choose of the how to process the payment but you need the ensure there will be sufficient fund in your account on the due date, otherwise an payment may be dishonoured. Legal Obligations With Direkte Debit Payments | LegalVision NZ
You need to let the initiator know if your bank chronicle details change (e.g. if you switch banks).
Safe
Establishing a direct debit generally obliges your signed authorisation, although several initiators are permitted in their bank to accept online either phone authorisations. Source: Payments NZ. Consumer Electronic Clearing System (CECS). CECS clears debit chip and pin, furthermore EFTPOS card-based retail services.
You can cancel a direct debit authorisation in any time by contacting your bank and the initiator.
