We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Finance

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What Is a Debit Date?

Kristie Lorette
By
Updated: Jan 30, 2024
Views: 7,894
References
Share

A debit date is the calendar date on which a payment is scheduled to be automatically deducted from an account, which is typically a checking or savings account. The debit date can be set for any time of the month, either by the payer of the bill or by the creditor or company that is receiving the payment.

The types of companies that can institute a debit date vary. Typically, a direct debit from an individual’s account is an agreement between the account holder and the biller. Two of the most common debit dates are the first and the 15th day of the month.

A direct debit may be connected with anything from a credit card or electric bill payment to child support and alimony payments. In some cases, the account holder is permitted to choose the debit date, while in other cases the company debiting the money tells the account holder when the debit date will be.

Establishing a debit date can be a convenience for an account holder. Instead of having to worry about when to pay bills or the act of sitting down to write out checks and mail bills, account holders can have all sorts of payments directly debited from their account.

Online bill pay also permits account holders to establish the debit date for when they want a bill payment to reach the creditor. In this situation, it allows the account holder to sit down once a month and schedule out their bills at one time. With an online bill pay system, which is through the bank of the account holder, the account holder can schedule the debit date for each of their bills to be paid for the entire month.

Since an account holder may or may not have control over the debit date, it is important to monitor the balance in the account. This ensures that there is always enough money to cover the direct debit. Some companies even offer discounts on rates to those clients that choose a direct debit option from their account.

Some companies even allow account holders to split monthly payments in two by separating the deductions into two different dates to debit the account. For example, a car insurance company may set a date to debit the account or half of the car insurance payment for the first day of the month. The company may then set the second debit date for the 15th of the month.

Share
WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Link to Sources
Kristie Lorette
By Kristie Lorette
Kristie Lorette, a storyteller, copywriter, and content creator, helps businesses connect with their ideal audiences through compelling narratives. With an advanced degree and extensive experience, she crafts engaging long and short-form content that drives results across various platforms. Her ability to understand and connect with target audiences makes her a valuable asset to any content creation team.

Editors' Picks

Discussion Comments
Kristie Lorette
Kristie Lorette
Kristie Lorette, a storyteller, copywriter, and content creator, helps businesses connect with their ideal audiences through compelling narratives. With an advanced degree and extensive experience, she crafts engaging long and short-form content that drives results across various platforms. Her ability to understand and connect with target audiences makes her a valuable asset to any content creation team.
Share
https://www.wise-geek.com/what-is-a-debit-date.htm
Copy this link
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.