Direct debit is a very popular payment method that is used in most countries around the world. The main goal is to enable automatic payment of outstanding invoices so that invoices can be paid more efficiently and conveniently. Before setup can begin, the account holder must accept the charge. As a general rule, the power supply company obtains your consent by using proof of payment, which is then sent to the bank for processing and debiting the account. Information about the payment received includes the amount, the customer’s signature, the date, and how often the account was debited. You can also set up direct debit services for charities over the phone with a formal script to collect the information, and also over the internet with an inquiry form. Recharging your account directly has advantages and disadvantages, which are explained below.
– Easy to configure
– Convenient and efficient payment method
– Once a direct debit has been set up, you don’t have to worry about late payments or penalties
– It is the cheapest method of payment instead of sending a check in stamps and envelopes that costs money.
– The client has control over the amount and dates of payment
It is important that your direct debit is protected by the direct debit procedure. All banks and mortgage loan companies participate in it, which provides good protection to their clients. The scheme means:
– Cancel a direct debit at any time of your choice
– The beneficiary must inform you in writing of any change in dates or payments.
– If your money is loaded incorrectly, the bank is obliged to reimburse you the full amount.
Many people confuse standing orders with direct debits. While these are two ways to set up recurring payments from one account to another, the way they work and are set up is fundamentally different. If the organization requesting the payment establishes direct debits, only the payer can set up a standing order, always for a fixed amount that is paid regularly.
Points to consider
Don’t forget about all the discounts available
You are likely to get the lowest rate if you opt for a variable energy rate online, pay via direct debit, and purchase dual fuel from the same supplier. You usually get a discount for each of these options, and variable rates are usually cheaper than fixed rates. Even if each discount is only 10%, they can add up to very little money.
Compare the latest offers online only
An online fee saves money since your account is managed online. You can simply log in and see how much you owe, track your services, and even enter meter readings. Most of the major utility companies introduce rates online because consumers like them and can offer lower rates online than they can offer for their regular rates.
Compare electricity prices regularly
Instead of accepting your current price forever, don’t forget to compare the prices you might get every six months or every year. Even if you have to pay a cancellation fee for your current fee, it can still be cheaper if the fee you receive from the new provider is cheap enough. Consider pre-cancellation fees if you think you might move, change providers, or buy before the set fee period ends.
Reduce your energy consumption
One of the easiest ways to save money, besides switching to direct debit, is to reduce energy consumption. Simply using a programmable thermostat to keep the heat low while traveling, being more careful with the lights you leave on, and not constantly charging electronics can cut your bills significantly. Some providers offer you a smart meter or home screen that allows you to track and reduce your energy use simply by signing up with them.
Changing your payment method isn’t the only way to lower your home’s electric and gas bills, although it is one of the easiest discounts you can get. When shopping, remember to consider online rates and double fuel discounts to save as much as possible on those monthly bills.
Remember: there is no shame in changing your electricity and gas provider. These companies tend to make a profit by raising prices or not offering the best prices to existing customers while offering the best prices to new customers. Becoming a new customer can save you hundreds of dollars instantly.