Setting up direct debits makes it easier to stay on top of your regular bills. Whether it's your gym membership, streaming subscription or energy and phone bills, automating the process is easier than manually paying your bill every month.
With credit card direct debits, you:
You can set up credit card direct debits for fixed amounts or to cover the exact amount you owe, even if it changes from bill to bill.
How you set it up will depend on your service provider. Some service providers will need you to fill out a form, while others may allow you to do it through their website or over the phone.
The details you'll have to provide include your credit card number, card expiry date and card verification number.
When you set up a direct debit, it's easy to forget about the payment because it automatically comes out of your account. But its worth checking your credit card statement regularly so you know you're being billed correctly. As a bonus, it could help you find direct debits for services that you're no longer using (such as an old gym membership or TV streaming subscription service).
If you're closing your credit card, make sure you update your direct debit details to avoid any issues. Depending on your service provider, you may be able to cancel your direct debit over the phone or manage your payment options online.
Otherwise, you may need to contact your financial institution to cancel the direct debit and ask that it confirms the cancellation in writing.
Make sure you check your bank statement to confirm that the direct debits have been cancelled. If the recurring payments continue, follow up with your card issuer and the merchant to resolve the issue.
Each company that bills you will have different conditions for direct debits. Switching these payments to a new card is a DIY affair. You can keep the process simple by following these steps:
| Response | Male | Female |
|---|---|---|
| All of the balance | 7.71% | 6.55% |
| The majority (more than 50%) of the balance | 3.57% | 1.9% |
| About half of the balance | 1.69% | 1.03% |
| Less than half of the balance | 1.13% | 0.34% |
| I only pay off my minimum repayment | 0.75% |
Images: Getty
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I’ve changed banks recently. I’m in the process of changing all my direct debits to new bank. Is it worth having DD from my credit card account? Mainly to earn more points? Phone, power, water, gas etc etc etc.
Kind regards
Wozz
Hi Wozz,
This depends on whether you want to earn points. If you’re paying the bills on your credit card, then you may as well get rewarded when you spend. You can find out more about paying bills and earning points to assist you further.
Thanks for your question.
Cheers,
Jacob
If say, an insurance company debits visa credit card monthly, lets say, 20th of the month, do they put a bar/restriction for that amount a few working days before? to ensure they get their funds? Just wonder since sometimesI have no reason for a debit balance, but know there is a bill due in next few days.
Thanks.
Hi Natalie. Thanks for your question. Yes, some merchants do this, it depends on how the merchant bills your account. Jacob.