Everyday money · General financial education

Direct debit mandate

A direct debit mandate lets a payee pull amounts from your account. You give permission; the payee initiates the payment.

In more detail

Mandate, amount and revocation follow the contract and local payment law (for example SEPA). Return or refund rules are local. Finmon recommends no bank.

Background

The payee pulls the money. You give permission. This sits next to how payments move, your cashflow, debt, and how quickly you can use money. Finmon does not recommend a bank.

An example

You grant the utility a mandate. Each month the amount is pulled until you revoke the mandate or the contract ends.

A common misconception

Direct debit and standing order are the same.

With a mandate the payee pulls. With a standing order you push recurring transfers.

Source: BaFin · Überweisungen und Lastschriften. Last reviewed: 2026-11-09. Editorially reviewed on 2026-11-09. Next review 2027-11-09. Version 0.2.0. Finmon explains. It does not advise. Not investment, tax or legal advice.