If you are using a direct debit provider, your business will enter into an agreement with them.  Once the necessary arrangements are in place you will be provided with a direct debit request or authority form.  This authority is an agreement between your business and your customer which will allow you to debit their nominated account.

In the case of a direct debit linked to a bank account you will give the merchant a Direct Debit Request. The Direct Debit Request will be sent to your direct debit provider in most cases to enter into their system, at which time the direct debit will then begin being processed. The form is not sent to the bank unless there is a dispute. The direct debit provider is able to participate in the direct debit system because a financial institution has sponsored them into the system. It is on the basis of this sponsorship that your bank will allow the direct provider to make debits from your customer’s account and deposit the funds into your account.

A direct debit can:

• be for a fixed or a variable amount; and
• operate at regular intervals or pre-determined dates.