Are there alternatives to Direct Debit for monthly fees?

roarrory33

I’ve noticed that some monthly payments (like gym memberships or subscriptions) are still taken by Direct Debit, but they don’t always go through smoothly and can lead to missed payments or extra hassle.

I’ve heard a bit about newer options like Pay-by-Bank or Open Banking payments and wondered if these are being used more now for regular monthly charges.

From a consumer point of view, are these any more reliable or easier to manage than Direct Debit, or do they come with their own issues? Just trying to understand what works best.

eskbanker

https://www.moneysavingexpert.com/banking/pay-by-bank-warning/

Nasqueron

Direct debits protect you with the guarantee so if they are not taken (as they are a pull, rather than a push like a standing order) then you are not liable

Isthisforreal99

Never had a DD go wrong so unsure what issues OP is having?

flaneurs_lobster

I've got 10 DDs across 2 current accounts. Can't remember any of them having failed, might have been a bit of double-dipping when swapping utility/mobile suppliers but not often.

Only thing that would stop them paying is lack of funds (or insufficient overdraft arrangement).

flaneurs_lobster

Spent some of today changing my credit card details on a few online sites. A few asked if I would like to add my details to Payit.

I looked it up

Payit is a connected payment ecosystem, offering a fast, simple and safe way to pay & get paid

None the wiser. Is this an alternative to direct debits and/or Continuous Payment Authorities?

HillStreetBlues

https://forums.moneysavingexpert.com/discussion/comment/81967272#Comment_81967272

Based in Burma?

friolento

Why don't your DDs always go smoothly?

flaneurs_lobster

https://forums.moneysavingexpert.com/discussion/comment/81967332#Comment_81967332

Yep, that'll be the one. Isn't that now Myanmar?

eddddy

roarrory33 said

I’ve noticed that some monthly payments (like gym memberships or subscriptions) are still taken by Direct Debit, but they don’t always go through smoothly and can lead to missed payments or extra hassle.

What non-smooth things and/or hassle have you encountered? (Except perhaps having insufficient funds in your account.)

I've had many thousands of payments collected by direct debit over the years. The only issue I can recall is one particularly daft government contractor who didn't seem to understand that dormant direct debit instructions are automatically removed by banks after 13 to 24 months. They accused me of cancelling it.

But that wouldn't happen if they are monthly direct debit payments.

Rob5342

https://forums.moneysavingexpert.com/discussion/comment/81967228#Comment_81967228

Same here. I have 32 direct debits set up and have been using direct debits for the last 26 years and apart from the odd hiccup when switching banks I've never had any problems with them. Modern banls like Monzo show you upcoming direct debts a few days before they are taken.