20 Jun 2022

Can someone set up a Direct Debit without my permission?

Setting up a Direct Debit

A direct debit payment cannot be issued if the merchant does not have authorisation. In other words, you have nothing to worry about. No one can set up a direct debit without your permission! That being said, you should be cautious when signing up for and agreeing to a direct debit.

Not all merchants or companies that offer this unique and free payment service are reliable. Always look over reviews and other guides to see how their direct debit system works. Usually, even as payment is charged to a person’s bank account or credit card, the payment does not post on the statement for approximately 2-5 business days.

If you suddenly notice a charge on your account that you did not authorise, immediately call your bank or credit institute! They have more information and can verify the details of your account and the direct debit payment. There is a risk when paying for items online. Although most direct debit payment systems are credible and highly secure, there are others that are easy to hack. It is possible for your identity to be stolen and used to create a direct debit payment for services and products.

Setting up a Direct Debit Conclusion

There are a lot of things to consider when setting up a direct debit system. It is important, for example, to consider that all merchants and companies require permission. Without permission, they cannot charge your account. This means that if there is a random charge on your bank statement or credit card, this may indicate fraud.

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