From a global banking alternative to becoming a worldwide bank for everyday use, Revolut is constantly pushing boundaries.
In response to growing demand from our community and to provide our customers with fast and safe payment solutions, Revolut introduces Euro Direct Debits. 🎉
What is a Direct Debit? 🏦
A Direct Debit is a payment instruction made by you to the financial institution with which you hold an account, authorising the merchant to collect payment from your account.
In practice however, a Direct Debit is very similar to a recurring payment or a standing order, as it allows you to make periodic payments for the purchase of goods or services. We've included a side by side comparison between the different payment types, at the end of this post.
These purchases can range from subscription services and gym memberships, to utility bills and even mortgage payments. This versatility makes Direct Debits one of the easiest and most convenient ways to make regular payments. 🎉
📖Hey there! 👋 Don't forget to Subscribe to our blog 👌🏻
Why should I use Direct Debits? 🤔
Whether you're paying for monthly subscriptions, utility bills or paying off your mortgage, in most cases, you're probably using Direct Debits without even realising.
Direct Debits have a number of benefits over traditional recurring payments. Setting up a Direct Debit allows you to:
- Spread the cost of a purchase over a period of time you agree with the merchant.
- Have peace of mind as Direct Debits are guaranteed against payment errors.
- Save time because once set, a Direct Debits runs automatically until the end of the contract.
How do I set up a Direct Debit? 📝
A Direct Debit must be set up with the merchant you wish to pay for the pruchase of goods or services.
In most cases, provided the merchant is part of the Direct Debit scheme, they will request that you fill out a form (print or online), asking you to allow the company to deduct payment from your account.
On the form, you'll need to provide your:
- Full Name
- Revolut Euro account IBAN and BIC (found in the Local tab of your EUR account in the app)
💶 Now that you're all set, remember to Subscribe to our blog 👌🏻
Once the application is submitted, the merchant will update their records and forward the payment instruction onto us. They'll then collect the agreed amounts on the agreed dates and we'll send you a push notification whenever a payment is made from your account. 🔔
What is the difference between Standing Orders and Direct Debits? 💸
Many seem to confuse Direct Debits with Standing Orders, and for good reason. Both methods allow you to make regular payments based on a predetermined frequency, but the devil is in the detail. Let's explore:
What are they?
A Standing Order is an instruction to your bank to make payments to a person or organisation, whereas a Direct Debit is an authorisation for a person or organisation to take payments from your account when they are due.
What are they used for?
Standing orders are used for regular, fixed payments such as rent or regular payments into a savings account for example. Direct Debits on the other hand are regular payments of variable or fixed amounts such as mortgage payments, utility bills or your phone bill.
What about customer protection?
Standing Orders do not offer dedicated protection against payment errors, but Direct Debits allow you to request immediate refunds from your bank in the event of an incorrect payment.
Join Revolut for Free
Manage your everyday spending with powerful budgeting and analytics, transfer money abroad, spend easily in the local currency, and so much more. Join 10M+ already using Revolut.