Direct debit
Direct debit is a payment method where a business is authorized to pull funds directly from a customer's bank account.
Direct debit allows businesses to automatically withdraw payments from a customer's bank account on a scheduled basis, with the customer's prior authorization. It is widely used for subscription billing in Europe (SEPA) and the UK (Bacs).
Example: A SaaS company collects monthly subscription fees via SEPA Direct Debit, pulling payments directly from customer bank accounts across the Eurozone.
