Best UAE Direct Debit System

Best UAE Direct Debit System

A direct Debit or Debit Order or direct withdrawal is a financial transaction in which one entity withdraws funds from another person’s bank account. Formally, the payee who directly draws funds instructs his or her bank to collect an amount – Debit – directly from the payer’s bank account designated by the payer and pay those funds into a bank account designated by the payee. Before we continue further we must tell you the Mashreq Bank UAE Direct Debit System is very convenient and popular among residents.

These UAE Direct Debit can be created for varying amounts and dates. As soon as the transfer through the UAE direct debit order is made, the bank records it. The payee records the amount once it receives notification from the bank. Thus, the balance on a bank statement may be lower than the cash book balance because direct debits have not been accounted for by the payee. The cash book of the payee must be adjusted to eliminate the difference in a bank reconciliation.

UAE Direct Debit

As mentioned before, UAE Direct Debit System is quite efficient compared to other direct debit in UAE. The top 3 benefits are as follows:

• No More Cheques
• No More Late Payment Fees
• No More Stress

The UAE Direct Debit System (referred as UAE Direct Debit, DDS or UAEDDS), is an initiative launched by the UAE Central Bank to provide a wider range of services to the UAE banking customers. This totally secured payment method has been designed with the aim of making customers’ lives easier when it comes to loan, mortgage and utility bill payments.

The UAE Direct Debit initiative was launched in October 2013 with loans and mortgages and is now deployed at a national level with utility bill payments.

Thanks to this new service, customers can now authorize their billers to pull the funds automatically from their accounts or credit card without the hassle of preparing checks. With UAE Direct Debit, you can set up payments to utility providers, Mashreq and even other banks. You are, of course, given the freedom of pausing, modifying and cancelling your UAE Direct Debit request whenever you need.

One of the most appreciated features of UAE Direct Debit is to allow customers to set fixed or variable amounts.

Terms and methods regarding UAE Direct Debit System Fixed Payment

If you need to pay service charges on a monthly, quarterly or yearly basis, you can select your biller, the amount and the frequency of your payments. No need to write 1, 4 or 12 cheques in a row every year, you can set the payment for the period of your choice.

Variable Amount

In the case of a post-paid mobile or electricity bill, the amount charged every month depends on your monthly consumption. The UAE Direct Debit service is absolutely fitted for such a need since you can select the minimum amount and maximum amounts of your choice. If the amount is within the bracket you defined, the funds will be transferred automatically to the service provider without any need for you to make a payment. No need to remember about your payments anymore. No more late payment charges.

Tips Regarding UAE Direct Debit System:

No idea of what your bill amounts can be? Select variable amount and set up the minimum amount as 0 and the maximum amount as 0.

Trying UAE Direct Debit now.

If you submit your UAE Direct Debit request before 12pm on business days, the status of your UAE Direct Debit request will be updated on MashreqOnline before 5pmwhen we will receive the acknowledgment of your request from your biller bank. Later than 12pm submissions will be answered day after at the latest.

Recommendations Regarding UAE Direct Debit

We recommend choosing a start date close to your billing date in order to avoid late payment fees from your biller.

Conclusion

The Best UAE Direct Debit is the system Mashreq offers. It is one of the best in town. And since, the service charges are quite low. It is better for student transactions as well.

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