A Direct Debit is a payment made by your bank or building society from your account to a named organisation, following an instruction from you to make such a payment when the organisation requests it.

Around 60,000 organisations use Direct Debits for collecting a variety of regular and occasional bills including utility payments, insurance, council tax, mortgages, loans and subscriptions.

Direct Debit is the preferred payment method for over 48% of the UK bill paying population because it provides so many advantages:

It spreads the costs - of bills across the year, allowing easier budgeting.

Peace of mind - of knowing bills are being paid automatically and payment dates will not be missed.

It's often cheaper - apart from eliminating the expense of mailing cheques, it enables you to take advantage of the many direct debit discounts available.

It's more convenient - many organisations offer a choice of payment dates giving you the convenience of choosing a date that suits you best.

It's guaranteed - the reassurance of knowing that every direct debit is protected by three main safeguards: an immediate money back guarantee from the bank or building society if an error is made, advance notice from the organisation if the date or the amount of the direct debit changes and ultimately, the right to cancel.

What's left is available to spend - paying regular bills by direct debit means it is easy to see what disposable income is left to spend after all other commitments have been met.

If you need to cancel a Direct Debit, simply write to your bank or building society. It is also a good idea to send a copy to the organisation concerned. Your bank or building society can make the cancellation up to and including the due date. Remember that cancelling the Direct Debit simply stops the payment to the organisation. If you carry on receiving the goods or service then you will have to organise an alternative payment method.

Most commonly you would complete a written Direct Debit Instruction, obtained from the organisation you wish to pay and return it to them for onward transmission to your bank. Some direct debits may be set up over the phone or via the Internet. In these cases the organisation must subsequently write to you confirming what has been agreed.

If any payment is made in error, you should contact your bank or building society which is responsible for giving you a full and immediate refund - even if the error was made by the organisation collecting the payment.

No, Direct Debits can only be set up from a UK bank account.

Normally payments will be made on the same day each month, quarter or annually according to the payment frequency. If any payment due date falls at a weekend or on a bank holiday, the organisation is obliged to debit your account just after that due date unless they notify you in advance of a change of date.

The first step is to speak to the company collecting payments from your account to explain the change you are requesting. It is also a good idea to tell your bank about the changes that you have requested.

Overall you, as the customer are in control of direct debit payments you authorise them and you can also stop or cancel them at any time. In terms of ensuring that payments are made, the bank or building society that holds your account is responsible for all aspects of the running of that account. They are therefore answerable for all payments, including those made by direct debit.

It is very unlikely that this will ever occur because organisations using the Direct Debit Scheme go through a careful vetting process before they are authorised, and are closely monitored by the banking industry. But if money were to be drawn from your account fraudulently you would be protected by the Direct Debit Guarantee, and would be entitled to an immediate refund from your bank or building society.

All organisations must be sponsored into the Direct Debit Scheme by their bank or building society. They are checked for integrity, sound financial standing and administrative capability before being permitted to offer direct debit to their customers.

This Guarantee is operated by all banks and building societies that take part in the Direct Debit Scheme. The efficiency and security of the Scheme is monitored and protected by your own bank or building society.

If the amounts to be paid or the payment dates change, the organisation will notify you normally 10 working days in advance of your account being debited, or as otherwise agreed.

If an error is made by the organisation or your bank or building society, you are guaranteed a full and immediate refund from your branch of the amount paid.

You can cancel a direct debit at any time by writing to your bank or building society. Also send a copy of your letter to the organisation.

The time after which a bank or building society will drop details of a Direct Debit Instruction from a payers account if no collections have been made in that time. The period is normally 13 months.

Direct Credit is a simple, secure and reliable service, which enables large and small organisations to make payments by electronic transfer directly into bank or building society accounts.

Direct credit is mainly used for paying wages and salaries - in fact over 70% of the UK workforce is paid via Direct Credit. In total, direct credit is used for paying over 4 million wages every week and nearly 6 million salaries a month. However, direct credit can be used for a wide variety of other applications. Over 150,000 organisations use them for supplier payments, pensions, employee expenses, insurance settlements, dividends and refunds.

Prompt payment - money will arrive in your account the day it is expected.

Cleared funds on arrival - unlike cheques, funds paid by direct credit can be used straight away, on the day they arrive.

Easier and saves times and effort - if you are busy, unwell or away on holiday, you can relax, knowing that your money is paid straight into your account. You no longer have to take or send cheques to your bank or building society.

Safer and more secure - unlike cash or cheques, Direct Credit payments cannot be lost, stolen or delayed in the post. Your money arrives automatically into your bank or building society account.

Essentially you have to contact your bank to recall the payment. It's a good idea to call your bank as soon as you have identified that you have made a payment that is going to be credited to the wrong account. Your bank will advise you of the timescales involved.

Your bank will offer facilities as part of your general account to credit another account. You can credit another account by using either your personal or business banking service. You will need the name of the payee, the name of their bank, the payee's bank account number and sort code. You will also need to provide the same details for the account to be debited. Typically this will be your account or an account where you are authorised to make a payment as in the case of joint account holding for example.

In depends on what has gone wrong. For instance, a payment may not have been received by you; this may be the result of incorrect bank details being held by the payer in which case a call to the payer will answer this question. A company which is authorised to make Direct Credits has agreements in place with other banks regarding recalling a payment and re-crediting it to the correct account.