Unlike credit transfers, direct debits are initiated by the payee, which thereby ensures that its claim on the payer is fulfilled on time. However, this presupposes that the payer preauthorises the payee to collect payment (collection authorisation) or, by agreement with the payee, authorises its bank to debit its account in accordance with direct debit requests issued by that particular payee (debit authorisation). Bank customers who have IT systems are expected to submit their direct debits for collection to the bank in electronic form only, ie on magnetic tape or diskette. Any remaining direct debits which are still paper-based -.
