When a direct debit is taken, it can be paid in “advance” or in “arrears” of the service.
- Arrears: Payment is made after the service has been provided: At the end of the billing cycle
- Advance: Payment is made before the service is provided: At the start of the billing cycle.
Due to the change in SEPA DD rules, payments will change from “arrears” to “advance”. This means that there will pay a double payment for one month i.e. in arrears for the previous month, and in advance of the next month. The following month will then be paid as a singular direct debit as normal.