Common use of Payment of dues by direct debit Clause in Contracts

Payment of dues by direct debit. Using the payment services The Customer-payer authorizes, by means of a special mandate, the Payee or the Bank to debit his account in order to pay his dues. The mandate may concern a single debit or recurring debits. Then, prior to the agreed due date, the Payee presents his claim to the Bank in the form of a collection order. At the due date specified by the Payee, the Bank debits the Payer’s account and credits the Payee’s account. The payment services “Payment of dues by direct debit” is most commonly used for the payment of utility bills (e.g. electricity, telephone, water etc.), but it may also be used for the payment of professional dues. The Payer, i.