Banking

Direct debit: It is a bank service that enables variable amounts to be paid from a bank account at varying times when requested by the creditor.
Advantages to accountholder:
1.Easy to make variable payments.
2.Prompt settlement of debts.
3.Some businesses offer incentives to use direct debit.
4.Saves having to remember payments.
5.Saves time and cost of writing cheques and posting payments.
Advantages to business:
1.Reduces risk of bad debts.
2.Better cash flow
3.Saves administrative costs.
Disadvantages to account holder:
1.Loss of personal control over account.
2.Danger of becoming overdrawn.
3.Mistakes may be made so that too much or too little money is taken from the account.