Meaning of the word "direct debit" in English

What does "direct debit" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

direct debit

US /ˈdɪ.rɛkt ˈdɛb.ɪt/
UK /ˈdaɪ.rɛkt ˈdɛb.ɪt/

Noun

an arrangement made with a bank that allows a third party to transfer money from a person's account on an agreed date, typically to pay bills

Example:
I pay my electricity bill by direct debit every month.
Setting up a direct debit ensures you never miss a payment.