[ARCHIVE] External vs Internal Direct Debits

Archived 2022.12.11. Content moved to Guidance on direct debits 

Question

Are internal direct debits to be treated as a direct debit?

An example of an internal direct debit is a payment on a home loan with Bank A, paid via direct debit from the customer's deposit account also held at Bank A.

Answer

Direct Debits normally cover situations where a direct debit is made from an account into an account held by a different account holder. An example is a regular payment for a gym membership.  These are normally done via BECS (Bulk Electronic Clearing System), or directly if both parties are customers of the same institution.

A regular repayment scheduled by a bank for home loan or credit card payments is normally represented either in account details or in the scheduled payments end points.

It is, however, at the discretion of the Data Holder to represent these items to align with how they would represent these types of payments in other channels.