What you need to know about debit orders
Debit orders can help you stay on top of your monthly payments without the struggle of remembering each one. Here’s what you need to know about how they work.
What is a debit order?
A debit order is an agreement between you and a company to take a set amount of money from your bank account every month. This is usually to pay for services or repay loans. Debit orders also make it easier to track your spending, helping you see exactly what's going in and out of your account. You choose the date the payment happens, which can help you set up payments right after payday.
What happens if I don’t have enough money?
If there isn’t enough money in your account when the debit order goes through, you’ll be charged a penalty fee. You might also face late-payment fees and added interest. Missed debit orders can negatively impact your credit score and history.
How to cancel a debit order
To cancel a debit order, you’ll need to contact the company you’ve made the agreement with—not your bank. Make sure they process your request to stop the payments.
Do debit orders come with fees?
Banks may charge a fee for debit orders, which are different depending on your bank, the type of account you have and the amount of the debit order. These fees typically cover the maintenance of your account, and you can find the details in your bank’s pricing guide.
Can I reverse a debit order?
You can advise your bank if there’s a problem with a debit order, so the bank can reverse any unauthorised charges.
Debit orders are a simple way to make sure your payments are always on time and help you manage your monthly budget better.