Debit account

A debit account is the entry of an amount of money in the debit of a bank account. This means a decrease in the balance available to its holder.

Basic direct debit, or CORE, is a payment instrument. This allows payments to be made electronically and automatically between legal entities and / or individuals. All this, through a charge to the payer's account.

Through this method, permission is given to a company, usually in the service sector - water, city hall, telephone, gas, insurance, etc. - to automatically collect from the account without the client's mediation. This function can also be used by another bank, to enter an amount of money from another entity at no cost.

Once the debt is collected, if it is less than 3,000 euros, you have thirty (30) calendar days, plus two (2) business days, to undo the payment.

In addition, although a commission can be charged for an account debit, it is usually free.

Account debts originate from the payment of a receipt from any service company that is domiciled in the account of an individual or company. Or by a cash withdrawal made through an ATM of the entity.

There are four participants in an account debit operation:

• The creditor and his bank.
• The debtor and his bank.

Characteristics of the debit account

The characteristics of the debit account are the following:

• They are operations that are carried out in Euros.
• Both accounts must be located within the European Economic Area (EU, Iceland, Liechtenstein, Norway) and, additionally, it is possible for accounts of member entities in Switzerland and Monaco.
• Equal conditions and rates for domestic and cross-border operations in the European Economic Area; regardless of the amount of the operation.
• The IBAN Code has to be the identifier of the beneficiary account. SEPA instruments necessarily require the use of the IBAN, even for domestic operations, which is why it replaces the Client Account Code (CCC).
• The purpose of the BIC is to identify the financial institution of the beneficiary.
• The beneficiary must receive the amount of the transfer, at the latest, the next business day from the issuance date by the ordering entity.

The editor recommends:

SEPA direct debit