What's the difference between Pay By Bank and direct debit?

Pay By Bank" (or "Pay by Bank Account") and direct debit are two electronic payment methods used to transfer money from one bank account to another. However, there are differences between these two methods:

Payment initiator :

• In the case of "Pay By Bank", it is the payer (the person making the payment) who initiates the transaction from his or her bank account.
• For direct debits, the payee (or creditor) initiates the transaction by withdrawing funds from the payer's (or debtor's) account, with the payer's prior authorization.

Prior authorization :

• In the case of "Pay By Bank", the payer must give prior authorization for the transaction by logging on to his online bank account and confirming the payment.
• For direct debits, the payer must also give prior authorization in the form of a signed direct debit mandate, which can be revoked at any time.

Payment frequency :

• Pay By Bank" is generally used for one-off payments, i.e. one-off transactions.
• Direct debits, on the other hand, are often used for recurring payments, such as utility bills, subscriptions and so on.

Technical mechanisms :

• Pay By Bank" often uses a third-party service that facilitates the connection between payer and payee to complete the transaction.
• Direct debits, on the other hand, are often handled directly by banks, which withdraw the funds from the payer's account and transfer them to the payee.