What is DDA Full Form

DDA Full Form


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.


Uses of DDA

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.


DDA 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 DDA scheme 

There are three benefits to making payment using direct debit:

  • Conveniences- 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.