--- title: What is a Direct Debit? | Learn about DDMS | Interbacs description: What is a Direct Debit? Direct Debit & Direct Debit Management Systems (DDMS) safeguard your cash flow in times of uncertainty. Learn more in our latest blog. image: https://interbacs.com/hubfs/Imported_Blog_Media/large_Is_my_business_large_enough_to_collect_payments_via_Direct_Debits_a3793ea3c3-2.jpg --- [![Interbacs Logo](https://interbacs.com/hubfs/interbacs-logos/logo__interbacs--white.svg "Interbacs Logo")](https://interbacs.com/) - Who We Are - [Who We Are ![button-arrow-white](https://interbacs.com/hubfs/button-arrow-white.svg)](https://interbacs.com/who-we-are) High-quality payment and collection solutions. Our expert team is dedicated to delivering first-class customer service and and innovative software solutions. - [Meet The Team ![button-arrow-white](https://interbacs.com/hubfs/button-arrow-white.svg)](https://interbacs.com/meet-the-team) ![Members of the team working around a table](https://interbacs.com/hs-fs/hubfs/menu-images/img__menu--our-team.jpg?width=856&height=402&name=img__menu--our-team.jpg "Members of the team working around a table") - What We Do - [What We Do ![button-arrow-white](https://interbacs.com/hubfs/button-arrow-white.svg)](https://interbacs.com/what-we-do) Interbacs has a wealth of experience in delivering bespoke payment management solutions across a wide range of sectors. [Software Demos ![button-arrow-white](https://interbacs.com/hubfs/button-arrow-white.svg)](https://interbacs.com/bacs-software/software-demo) - [Products
(BACS Software) ![button-arrow-white](https://interbacs.com/hubfs/button-arrow-white.svg)](https://interbacs.com/bacs-software) - [Interpay BACS Approved Software](https://interbacs.com/bacs-software/interpay) - [Interpass Identity Verification](https://interbacs.com/bacs-software/interpass) - [Hardware Security Module (HSM)](https://interbacs.com/bacs-hsm-software) - [Direct Debit Management Software](https://interbacs.com/bacs-software/ddms) - [Payroll Bureau Software](https://interbacs.com/services/payroll-bureau-software) - [Services ![button-arrow-white](https://interbacs.com/hubfs/button-arrow-white.svg)](https://interbacs.com/bacs-professional) - [BACS Approved Bureau](https://interbacs.com/services/bacs-approved-bureau) - Who We Help - [Who We Help ![button-arrow-white](https://interbacs.com/hubfs/button-arrow-white.svg)](https://interbacs.com/who-we-help) Interbacs is an approved Bacs software supplier, offering Bacs solutions for all businesses – regardless of size or turnover. - [Startups ![button-arrow-white](https://interbacs.com/hubfs/button-arrow-white.svg)](https://interbacs.com/who-we-help/start-up) ![icon\_\_start-ups](https://interbacs.com/hubfs/menu-images/icon__start-ups.svg "icon__start-ups") [![button-arrow-white](https://interbacs.com/hubfs/button-arrow-white.svg)](https://interbacs.com/who-we-help/start-up) - [SMEs ![button-arrow-white](https://interbacs.com/hubfs/button-arrow-white.svg)](https://interbacs.com/who-we-help/small-medium-sme) ![icon\_\_smes](https://interbacs.com/hubfs/menu-images/icon__smes.svg "icon__smes") - [Enterprise Business ![button-arrow-white](https://interbacs.com/hubfs/button-arrow-white.svg)](https://interbacs.com/who-we-help/enterprise-business) ![icon\_\_enterprise-business](https://interbacs.com/hubfs/menu-images/icon__enterprise-business.svg "icon__enterprise-business") - [Channel Partners ![button-arrow-white](https://interbacs.com/hubfs/button-arrow-white.svg)](https://interbacs.com/who-we-help/channel-partners) ![Channel partners icon](https://interbacs.com/hubfs/menu-images/icon__channel-partners.svg "Channel partners icon") - More - More From technical guides to the latest industry news, our Knowledge Hub is bursting with the very latest talking points in direct debit management and Bacs solutions. Read on to find out more about the world of business finance. - [Industries Served ![button-arrow-white](https://interbacs.com/hubfs/button-arrow-white.svg)](https://interbacs.com/industries) - [Knowledge Hub ![button-arrow-white](https://interbacs.com/hubfs/button-arrow-white.svg)](https://interbacs.com/knowledge-hub) - [Brochures](https://interbacs.com/brochures) - [FAQs](https://interbacs.com/faqs) - [Blog](https://interbacs.com/blog) - Who We Are - [Who We Are](https://interbacs.com/who-we-are) - [Meet The Team](https://interbacs.com/meet-the-team) - What We Do - [What We Do](https://interbacs.com/what-we-do) - [Products
(BACS Software)](https://interbacs.com/bacs-software) - [Interpay BACS Approved Software](https://interbacs.com/bacs-software/interpay) - [Interpass Identity Verification](https://interbacs.com/bacs-software/interpass) - [Hardware Security Module (HSM)](https://interbacs.com/bacs-hsm-software) - [Direct Debit Management Software](https://interbacs.com/bacs-software/ddms) - [Payroll Bureau Software](https://interbacs.com/services/payroll-bureau-software) - [Services](https://interbacs.com/bacs-professional) - [BACS Approved Bureau](https://interbacs.com/services/bacs-approved-bureau) - Who We Help - [Who We Help](https://interbacs.com/who-we-help) - [Startups](https://interbacs.com/who-we-help/start-up) - [SMEs](https://interbacs.com/who-we-help/small-medium-sme) - [Enterprise Business](https://interbacs.com/who-we-help/enterprise-business) - [Channel Partners](https://interbacs.com/who-we-help/channel-partners) - More - More - [Industries Served](https://interbacs.com/industries) - [Knowledge Hub](https://interbacs.com/knowledge-hub) - [Brochures](https://interbacs.com/brochures) - [FAQs](https://interbacs.com/faqs) - [Blog](https://interbacs.com/blog) - [Account ![button-arrow-white](https://interbacs.com/hubfs/button-arrow-white.svg)](https://ddsignup.co.uk/interbacs/companylogin.aspx) - [Book a Demo ![button-arrow-white](https://interbacs.com/hubfs/button-arrow-white.svg)](https://interbacs.com/bacs-software/software-demo) - [Contact Us ![button-arrow-white](https://interbacs.com/hubfs/button-arrow-white.svg)](https://interbacs.com/contact-us) Menu # What is a Direct Debit? ![Blog featured image](https://interbacs.com/hubfs/Imported_Blog_Media/large_Is_my_business_large_enough_to_collect_payments_via_Direct_Debits_a3793ea3c3-2.jpg) Share on Waiting for payments from customers is undoubtedly one of the most frustrating aspects of running a business. Even before the pandemic hit, small and medium-sized enterprises (SMEs) were reportedly chasing more than [£50 billion of late payments](https://www.cityam.com/uk-smes-chasing-50bn-in-late-payments/). But there is a solution: Direct Debits and [Direct Debit Management Systems](https://interbacs.com/services/direct-debit-facilities-management) (DDMS). Interbacs is a market-leading provider of reliable Direct Debit payment solutions. This means we are well-placed to answer all of your most frequently asked questions about Direct Debits, which is exactly what we have set out to do here. By the end of this read, you will have a much deeper understanding of the functions and benefits of both Direct Debits and our highly configurable DDMS software. ## What is a Direct Debit? A Direct Debit is a simple and convenient way for customers to pay their regular bills. Bacs, previously known as the Bankers' Automated Clearing System, is responsible for the clearing and settlement of all UK-based automated Direct Debits. Direct Debits enable you to automate your payments, which means you receive ongoing payments at regular, specified intervals, streamlining your admin and reducing your costs. ## How does a Direct Debit work? A Direct Debit works by providing an instruction from the customer's bank or building society that gives your organisation the authority to collect a pre-specified amount of money on an agreed date. Once those agreements are in place, your customer's money is deducted automatically. If any changes to the amounts collected or the date it is collected need to be made; those must be approved by the customer in advance. ## Would my business benefit from using Direct Debits? That generally depends on the type of business you run, but, by and large, most companies can benefit from the security and convenience of automated Direct Debit payments. If you have regular customers, Direct Debits can save you and them a great deal of admin. Likewise, if you offer subscription services or products that can be purchased in instalments, then Direct Debits can ensure your customers never miss a payment. ## How to set up a Direct Debit? [Setting up a Direct Debit](https://interbacs.com/products/integrated-services/ddms-online-signup) isn’t as taxing as you might think. Simply acquire a Direct Debit mandate (also known as a Direct Debit instruction or DDI) in writing from your customer. Then submit the mandate via Bacs, which can take up to 10 working days. Then, once your mandate has been accepted and you have given notice to your customer (usually 10 working days before payment is taken), you can begin taking payments. Interbacs can also assist you to become a Paperless Direct Debit originator so that everything is done online ## What is the difference between a standing order and a Direct Debit? Standing orders are regular payments set up by the customer, whereas a Direct Debit is set up by you – the businesses owner – with the customer’s express permission. Unlike standing orders, Direct Debits ensure you get paid. However, it is worth bearing in mind that Direct Debit indemnity means that customers retain the right to cancel any payment at any time and receive a full refund. ## Does my business need a Direct Debit Management System (DDMS)? [Direct Debit Management Systems (DDMS)](https://interbacs.com/solution/ddms/) make it easy to edit, cancel and create new Direct Debits. With more than 30 years of experience delivering bespoke [Bacs solutions](https://interbacs.com/solutions-finder), Interbacs is a leader in this field. Our DDMS software is a full Direct Debit suite that removes many manual tasks to create a highly automated service. Our configurable software enables you to use it in a way that best suits you and your company. DDMS software from Interbacs validates your customer data and bank account details according to Bacs regulations. This means payment plans can be created and edited with ease. Our software also produces straightforward and easy-to-read reports so that you can make more informed decisions about your business. Save time and money with reliable, professional and innovative payment solutions and services from Interbacs. ## Get in touch If you want to learn more about how Interbacs can help your business expand, call us at 0161 667 0758. Alternatively, email us at [sales@interbacs.com](mailto:sales@interbacs.com). ## Latest blog [Read More ![button-arrow-white](https://interbacs.com/hubfs/button-arrow-white.svg)](https://interbacs.com/blog) Aug 18, 2026 ### [No new Non-AUDDIS Service User Numbers after 1 July 2027](https://interbacs.com/blog/no-new-non-auddis-service-user-numbers-after-1-july-2027) Every business that collects money by Direct Debit does so under a Se... [![No new Non-AUDDIS Service User Numbers after 1 July 2027](https://interbacs.com/hubfs/Imported_Blog_Media/large_closeup_person_reading_studying_document_8222bb03d2.jpg)](https://interbacs.com/blog/no-new-non-auddis-service-user-numbers-after-1-july-2027) May 27, 2026 ### [How will my payroll bureau correspond with HMRC?](https://interbacs.com/blog/how-will-my-payroll-bureau-correspond-with-hmrc-interbacs) Payroll bureaus often have to deal with significant volumes of Bacs p... [![How will my payroll bureau correspond with HMRC?](https://interbacs.com/hubfs/How%20will%20my%20payroll%20bureau%20correspond%20with%20HMRC%20%281%29.jpg)](https://interbacs.com/blog/how-will-my-payroll-bureau-correspond-with-hmrc-interbacs) ## Simplify Your Payment Solutions Section Placeholder Discover streamlined payment solutions tailored to your business needs. [Explore Solutions ![button-arrow-white](https://interbacs.com/hubfs/button-arrow-white.svg)](https://interbacs.com/solution-finder) [![Interbacs logo](https://interbacs.com/hubfs/interbacs-logos/logo__interbacs--white.svg "Interbacs logo")](https://interbacs.com/) 4.5 - [Account ![button-arrow-white](https://interbacs.com/hubfs/button-arrow-white.svg)](https://ddsignup.co.uk/interbacs/companylogin.aspx) - [Contact ![button-arrow-white](https://interbacs.com/hubfs/button-arrow-white.svg)](https://interbacs.com/contact-us) About Interbacs - [Who We Are](https://interbacs.com/who-we-are) - [Meet The Team](https://interbacs.com/meet-the-team) - [What We Do](https://interbacs.com/what-we-do) Our Products - [Products (BACS Software)](https://interbacs.com/bacs-software) - [Interpay BACS Approved Software](https://interbacs.com/bacs-software/interpay) - [Interpass](https://interbacs.com/bacs-software/interpass) - [Direct Debit Management Software](https://interbacs.com/bacs-software/ddms) - [Book A Demo](https://interbacs.com/bacs-software/software-demo) - [Payroll Bureau Software](https://interbacs.com/services/payroll-bureau-software) Our Services - [Services (BACS Professional)](https://interbacs.com/bacs-professional) - [BACS Approved Bureau](https://interbacs.com/services/bacs-approved-bureau) Who We Help - [Who We Help](https://interbacs.com/who-we-help) - [Start Up](https://interbacs.com/who-we-help/start-up) - [SMEs](https://interbacs.com/who-we-help/small-medium-sme) - [Enterprise Business](https://interbacs.com/who-we-help/enterprise-business) - [Channel Partners](https://interbacs.com/who-we-help/channel-partners) More - [Industries Served](https://interbacs.com/industries) - [Knowledge Hub](https://interbacs.com/knowledge-hub) - [Blog](https://interbacs.com/blog) - [Transaction Lookup](https://interbacs.com/transaction-look-up) - ![bacs approved software](https://interbacs.com/hs-fs/hubfs/bacs%20approved%20software.png?width=137&height=74&name=bacs%20approved%20software.png) - ![bacs aproved bureau](https://interbacs.com/hs-fs/hubfs/bacs%20aproved%20bureau.png?width=199&height=74&name=bacs%20aproved%20bureau.png) - ![bacs electronic elements affiliate](https://interbacs.com/hs-fs/hubfs/bacs%20electronic%20elements%20affiliate.png?width=199&height=74&name=bacs%20electronic%20elements%20affiliate.png) - ![ico-white](https://interbacs.com/hs-fs/hubfs/ico-white.png?width=110&height=73&name=ico-white.png) - ![certified](https://interbacs.com/hs-fs/hubfs/certified.png?width=76&height=74&name=certified.png) - ![certified plus](https://interbacs.com/hs-fs/hubfs/certified%20plus.png?width=76&height=74&name=certified%20plus.png) - ![CCS\_WHITE\_Supplier\_AW\_72dpi](https://interbacs.com/hs-fs/hubfs/CCS_WHITE_Supplier_AW_72dpi.png?width=92&height=74&name=CCS_WHITE_Supplier_AW_72dpi.png) - ![thumbnail\_ISO 27001-2022-h-darkfull-2](https://interbacs.com/hs-fs/hubfs/thumbnail_ISO%2027001-2022-h-darkfull-2.png?width=197&height=74&name=thumbnail_ISO%2027001-2022-h-darkfull-2.png) - ![thumbnail\_ISO 9001-2015-h-darkfull-1](https://interbacs.com/hs-fs/hubfs/thumbnail_ISO%209001-2015-h-darkfull-1.png?width=197&height=74&name=thumbnail_ISO%209001-2015-h-darkfull-1.png) **© 2026 Interbacs Ltd.** Company No. 04765553. VAT Registration No. GB 883 722 790. INTERBACS is authorised by the Financial Conduct Authority under the Payment Services Regulations 2017, registration number 912471, for the provision of payment services. - [Privacy Policy](https://interbacs.com/privacy-policy) - [Cookies Policy](https://interbacs.com/cookies-policy) - [Anti-Slavery Policy](https://interbacs.com/anti-slavery-policy) - [Customer Complaints Policy](https://interbacs.com/customer-complaints-policy) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Admin", "url" : "https://interbacs.com/blog/author/admin" }, "dateModified" : "2025-01-28T08:53:36.939Z", "datePublished" : "2021-01-03T00:00:00.000Z", "headline" : "What is a Direct Debit? | Learn about DDMS | Interbacs", "image" : [ "https://interbacs.com/hubfs/Imported_Blog_Media/large_Is_my_business_large_enough_to_collect_payments_via_Direct_Debits_a3793ea3c3-2.jpg" ], "mainEntityOfPage" : { "@id" : "https://interbacs.com/blog/what-is-a-direct-debit", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://interbacs.com/hubfs/logo-1.png" }, "name" : "Interbacs Ltd" } } ```