A direct debit (Lastschrift) is a way to pay bills. You allow a company or a public office to take money from your account. This means you do not have to make a transfer yourself. The amount is taken from your account automatically, often on the same date every month. In Europe, this is also called a SEPA direct debit (SEPA-Lastschrift). The permission you sign for it is called a SEPA direct debit mandate (SEPA-Lastschriftmandat), or mandate (Mandat) for short.
Where you will see this word
Many contracts in Germany are paid by direct debit. You will see the word, for example:
- in contracts for electricity, gas, internet or your mobile phone plan,
- for rent and insurance, for example liability insurance,
- for the broadcasting fee,
- for fees charged by your city or municipality, for example for rubbish collection. This differs from city to city,
- on your bank statement. It often says „Lastschrift“ or „SEPA-Basislastschrift“ there.
A form usually has fields for your name, your IBAN and your signature. By signing it, you give the mandate. You need a current account (Girokonto) for a direct debit.
What you should do
- Read the form carefully: Check who is allowed to take the money and what it is for. Your IBAN must be correct.
- Have enough money in your account: There must be enough money in your account on the day the payment is taken. Otherwise, the bank can return the direct debit. This is called a returned direct debit (Rücklastschrift). You may have to pay fees for this. And the bill is still not paid.
- Check your bank statements: Regularly check that the amounts are correct. Before a payment is taken, you usually get a notice with the amount and the date, for example on the bill.
- Act if something is wrong: With a normal SEPA direct debit, you can get the money back through your bank within eight weeks without giving a reason. If you never gave a mandate, the deadline is longer. Ask your bank how to do this. Important: If the bill is correct, you still have to pay it. Otherwise, you will get a payment reminder (Mahnung).
- End the mandate: If you cancel a contract, you can withdraw the mandate. To do this, write to the company. At many banks, you can also have direct debits blocked.
Examples
- „The amount will be taken from your account by direct debit on the 15th of the month.“
- „Please fill in the SEPA direct debit mandate, sign it and send it back to us.“
- „Unfortunately, the direct debit could not be collected. Please transfer the outstanding amount.“
Related terms
- Bank transfer (Überweisung): Here, you send money to someone yourself. With a direct debit, the recipient takes the money.
- Standing order (Dauerauftrag): Your bank transfers the same amount for you every month. You control this order yourself.
- Direct debit authorisation (Einzugsermächtigung): An older word for the permission for a direct debit. Today, people usually say mandate.
- Creditor ID (Gläubiger-ID): A number that shows who is collecting the direct debit.
- Mandate reference (Mandatsreferenz): A number for your mandate. It is often shown on your bank statement.
- Returned direct debit (Rücklastschrift): A direct debit that was not paid or was reversed.