direktorder

A direktorder is a type of payment order commonly used in Germany and some other European countries. It functions similarly to a direct debit, allowing a company or organization to withdraw funds directly from a customer's bank account. This method is often used for recurring payments such as utility bills, subscriptions, or loan installments.

To set up a direktorder, a customer must provide their bank details and sign an authorization form, often referred to as a "Lastschriftmandat." This mandate grants the payee permission to debit their account. The customer has the right to revoke this mandate at any time.

A key feature of the direktorder system is the customer protection it offers. If a payment is debited incorrectly, the customer can typically request a refund from their bank within a specified period, usually eight weeks, without needing to provide a reason. This makes it a relatively secure method for consumers. The process involves the payee initiating the debit transaction through their bank, which then communicates with the customer's bank to process the withdrawal. It streamlines payment collection for businesses and can be convenient for consumers by automating regular payments.