DaveB
Grenadier Owner
- Local time
- 3:01 PM
- Joined
- Mar 18, 2022
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- Toogoom, Fraser Coast Queensland
I agree with you 100%. I don't even do direct debit payments I organise recurring payments from my account myself. I have a separate account for them. Many years ago I had a business loan with ANZ Bank in Australia, which I didn't bank with, and they set up a direct debit from an ANZ account I set up exclusively for that purpose. I deposited funds automatically in the account every month and they would get direct debited to pay the loan. After almost 2 years of running smoothly I didn't pay any attention until a received a letter saying I had defaulted on my loan. I checked my bank and money was going into the ANZ account as usual but the direct debit had stopped 4 months previously. Turns out it was a glitch on their system. I could prove that I was trying to pay it but they still had it as a default and I couldn't do anything about it. It took over a year to sort out and get it off my credit rating. Since then no direct debits.This is a common payment method here in Germany.
A "bank transfer" is something I actively initiate. With a "direct debit" (?), a creditor deducts the money from my account after I have given permission. This is how we usually pay our electricity, car tax, insurance, anything that is recurring.
The important difference is that I can't withdraw a transfer once I've initiated it. But I can object to any direct debit and usually get my money back first.
For some years now, it has also been possible for a company to initiate a transfer for me via a payment portal. In this case, you have to enter the password of your bank account (!) via a so-called 'trusted' and 'encrypted' and God knows what else for security measures protected system. They claim.
This was introduced for convenience, they say: 'you can pay directly, it's safe and convenient'.
Yes, that's true. But the morons all over the world don't realize that they are actually initiating a wire transfer and thus have no chance of ever getting their money back if the payment system has been hacked, the company is a scammer, or the gateway was perhaps written by the developers that programmed the Ineos configurator.
I would never ever let software programmed by I don't know who get the password to my bank account.
This is what I meant above. Just to clarify the difference between the various payment methods and their pitfalls.