Direct debit arises in the seventies, given that at that time the services and club fees will be paid in cash, sometimes it was monthly, quarterly or semi-annually so it was something very complex, it is then that to reduce and do more This type of payment is practical, the banking entities managed and invented direct debit, an activity that is still used to this day.

Among the main characteristics that represent direct debit is that it is associated with the contracting of subscription services, such as the gym, magazines, among others, and with the payment of basic service bills such as those already mentioned. In addition, it is a very convenient way to secure payments without having to go to the corresponding institutions to pay the bills.

It is necessary to take into account who are involved in the domiciliation and how they do it:

1. The issuer is nothing more than the company that provides the services on a constant basis and that must charge for them, for which it issues receipts periodically charged to the accounts of its customers in the banks. It should be noted that these receipts are not issued physically, but the company together with the bank have a computer system where they keep control.
2. The drawee is the person who is obliged to pay for the services, each individual who hires a supply company must have a bank account where the receipts will be added periodically and then discounted. The account is usually current but not savings.
3. Residential entities are nothing more than the banks where the accounts of those who have this service are located.

Issuer>, the box or bank where the company receives payment for services.

Having said what direct debit means, it is then that it helps people save time, since they will reduce visits to the bank and makes people's lives a little easier.