25 Jun 2022

Why is it cheaper to pay by direct debit?

Direct Debits Good

There are both positives and negatives to using direct debit payments. When looking into direct debit payments, consider that direct debits are cheaper! On average, a credit or debit card payment charges an extra 3%. However, this percentage is waived when paying with automatic direct debit.

There is a negative to paying with direct debit; it can take 3-10 business days for the payment to show on your bank statements. If you are okay with this and want to save some money on a payment method, fill out a direct debit form from a merchant.

Keep in mind that you cannot fill out a form and set up a direct debit on your own. All you need is your basic information and the account number, and the sort code! The merchant will take care of the rest.

Direct debits can be tricky, though, especially if you do not properly read the terms and conditions. Some direct debits cannot be cancelled without a penalty or require some kind of clause to be filled before the direct debit is done. 

Cheaper Direct Debit Conclusion

There are so many different payment methods to consider when paying important bills each month. Thankfully, using a direct debit system does make it cheaper. When you pay with a credit card, there is an increase in cost. Here at Mortgage House, we offer direct debit as a repayment option for our many loans. You can bundle and save with our competitive interest rates!

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