A direct credit is most often used by businesses to make batches of payments in one transaction.

The benefits

A direct credit can be used to make regular payments to a group of people (e.g. staff, suppliers or shareholders) and to pay many payments at the same time (e.g. wages, salaries, invoices, dividends).

You can make many outward payments and have only one transaction show on your account statement.

Things to keep in mind

The person you pay will need to let you know if their bank account details change (e.g. if they switch banks).

If you receive payment by direct credit you will see it as a deposit into your bank account.

Security

Paying money directly into the account of the person you are paying is more secure than giving them cash or a cheque.