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Direct debit is a direct withdrawal account. With this type of plan, the bank account holder authorizes the bank to withdraw funds from one account to pay a debt. This type of plan is typically referred to as a pre-authorized debit and used to pay a recurring debt such as a credit card or pay utility bills. The account holder can set a pre-specified amount to be paid on a regular basis, change the amount or make a one-time lump sum payment.

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14y ago

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