Direct debiting bills is quite common with banks. Now known as a SEPA Debit, it is the authorisation the bank gets to pay or debit or the bills we receive periodically. In other words, it schedules the payment of certain services to avoid unnecessary inconveniences at the end of the month.
It's common for any user or company to have to pay certain bills on a regular basis. Services such as electricity, water, gas, Internet or subscriptions to streaming platforms. In all these cases, the bank handles the process so you can stop worrying about the payment. Imagine how cumbersome it would be to have to make all these payments manually. With the risk this entails, since any delay in making a monthly payment could result in the service being suspended.
SEPA direct debits
They were created in 2014, when the EU decided to create a single payment area that used the euro. This new instrument has simplified transfers between EU countries and other associates (36 in total) tremendously. By using the same system, transactions are quicker. Unifying the process did away with previous obstacles, such as not knowing what country the payment came from.
This type of debit is also useful for business owners and self-employed workers. For example, if they want to direct debit their payments to customers. To do this, they just have to send a direct debit order to their bank. This document includes, among other things, the IBAN and BIC/SWIFT codes, as well as a series of data.
