ECS vs Direct Debit

POSTED BY Ravi ON June 13, 2013 12:13 pm COMMENTS (3)


Can anyone tell what is the difference between ECS (Electronic Clearing System) and Direct Debit?


3 replies on this article “ECS vs Direct Debit”

  1. Dear Ravi, sorry for the goof up on my part in prev. query. Actually it’s electronic clearance not credit as i posted in my prev. reply.

    The one difference is – in case of Direct Debit, the amount remains fixed once notified whereas in ECS, the amount may change as per demanded by the ECS request generator. for example in case of EMIs if ROI increases, the bank may issue ECS mandate to deduct higher EMi from your bank account.



  2. Ravi says:

    Thanks Dear Ashal for your response. If ECS is Electronic Credit System, just wondering why do they say to submit the ECS mandate for EMIs. Shouldn’t it be called Direct Debit mandate? 🙂

  3. Dear Ravi,
    ECS is electronic Credit System, in which your account will be credited automatically without any manual intervention. Examples.Monthly salary credit, interest on some financial securities like bond coupen payments etc.
    Direct Debit can only be set up by the organisation to which you are making a payment. Normally, you sign a mandate that gives the company permission to take funds from your account in an agreed way. It normally confirms who is receiving the payment, the account to be debited, the amount and the dates of the payment. example loan emi.



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