A direct debit can be seen as an offline Automated Clearing House (ACH) transfer. It is a commonly used payment method in various European countries. The Direct Debit is a pull mechanism. The payment method allows a merchant to debit a consumer's bank account automatically after an approval from the consumer. Direct Debits are cost effective and relatively fast.

Direct Debits are country specific and can be complicated to set up, local presence is often required. Smart2Pay handles this process for you in 10 European countries and offers an integrated electronic batch input file and report file besides online reporting.