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Glossary

Direct Debit

An authority you give a company to pull money from your account — flexible amounts, initiated by them.

A direct debit lets an organisation take payment from your account when it falls due — the amount can vary, as with a power bill. You sign an authority once; they initiate each payment.

The distinction from an automatic payment matters: a direct debit is controlled by the biller, an AP by you. Cancelling a direct debit properly means telling both the company and your bank — otherwise a "cancelled" service can keep collecting.

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