DDA Full Form
DDA (Direct Debit Authorization)
Full Form of DDA- DDA full form is Direct Debit Authorization. A direct debit is an instruction from you to your bank, authorizing someone to collect payments from your account when they are due. You give this authorization by completing a direct debit mandate form- this can be a proper form or a webpage that you complete online.
Direct Debit payments be Used for- Direct debit can be used for most payments but below are some examples of where it’s used most often:
- Regular Bills for variable amounts- With direct debits you know all your important bills will be paid on time each month.
- Fixed Subscriptions for memberships- Direct debit is the safest and easiest way to make recurring payments like magazine subscriptions or gym memberships.
- Paying on Account- Some organizations will provide direct debit as an option for spreading your costs or paying on account.
Must Know the Important Direct Debit Scheme Rules-
- Advance Notice- You must be told the amount and date of each payment in advance.
- Direct Debit Guarantee- You are entitled to immediate refund for any payments that should not have been taken.
Advantages of Direct Debit scheme- There are three benefits to making payment using direct debit:
- Conveniencece- Payments are automatic, so bills are never forgotten, lost or delayed.
- Cost- Businesses may offer incentives for paying by direct debit.
- Customer Protection- Direct debit is the safest payment method.
Disadvantages of Direct debit- You do need to stay in control. Keep track of your direct debits and make sure there is enough money in your account to cover the payments. Try setting yourself a reminder to check.
This is easy to do, especially if you have online access to your account, if not you might end up being charged by your bank.