Direct debiting

Updated: Aug 20, 2021

A system of payment for goods which is used in certain types of trade, particularly where, although the supply is to be constant, the precise amount in volume or price can vary within marginal limits from one period to another. The purchaser arranges for the vendor to be paid by a direct bank transfer, the amount of which is notified to the bank by the vendor at the time of delivery. It is not dissimilar to a standing order but differs in so far as the periodic charge might vary from week to week, or month to month, within agreed limits.

Reference: The Penguin Business Dictionary, 3rd edt.

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James Knight
Editor of Education
James is a lead content editor for Invezz. He's an avid trader and golfer, who spends an inordinate amount of time watching Leicester City and the… read more.