A Direct Debit is an instruction from you to a third party authorising them to collect payments from your account as a payment falls due. The amount taken from your account by Direct Debit may vary from payment to payment or it may be for a fixed amount. A Direct Debit is usually used for payment arrangements that you may have with your mobile phone provider, your broadband/television services provider, your electricity and gas provider, the Revenue Commissioners, and car and home insurance providers etc.
A Standing Order is an instruction you give to your bank to pay a fixed amount at regular intervals to a third party e.g., if you have a loan repayment or rent, this may be agreed at a set amount for a set period.
No. If you choose to open a new account yourself, you will need to contact each company that you have a Direct Debit arrangement with and provide them with your new account details. If you choose to switch your account, your existing provider will notify the companies you have a direct debit arrangement with; however, you should still contact each company to make sure your new account details are updated on their system.
Yes – your existing provider will give you a list of all the Direct Debits and Standing Orders on your account. You may be able to access it through your current provider’s online banking services. You should check this list to ensure that the details are correct.
To ensure that any payments on your account continue to be paid after your close your existing account, you will need to contact each company that you have a Direct Debit payment arrangement with. You can do this by logging on to their website or by contacting the company by phone or email. These details should be available on any correspondence you receive from these companies or online.
It is important that you ensure any Direct Debits, Standing Orders and recurring card payments that you may have with your existing provider are updated with your new provider and any companies that you pay in these ways. This is to ensure that your bills, including any loans, credit cards, overdrafts etc. that you may have, continue to be paid and that there are no missed payments reported to the Central Credit Register (CCR) and therefore, no impact on your credit rating.
More information can be found on the CCR website here.
Yes – anyone who makes a payment into your account should be notified of your new account details. Examples of payments into your account include your salary, any welfare payments you may receive, any rental payments into your account from any tenants in a property you have rented etc.
Some companies allow you to update your account details online. More information should be available from these companies.
Companies will likely ask you for your new BIC and IBAN, but you will not be asked for your PIN number.
If you wish to get an overdraft on your new account, you will need to speak to your new provider about this and apply for it.
As an overdraft is a credit product your new provider will have to assess that you have the means to repay the overdraft. If you need an overdraft on your account, you should start to explore your options now and start the process of applying for a new one with another provider.
An overdraft will not move automatically to your new account, nor will it switch to your new account if you choose to move your account by availing of the switching process.
If you have an overdraft on your existing current account, you will need to ensure the balance that you owe, if any, is cleared before your existing account is closed.
If you are not able to repay the balance before you close the account, you should talk to your existing provider about the options available to you or to your new provider to see if they can assist.
To apply for a new overdraft, you will need some or maybe all of the following:
Yes – when you open your new account, your new provider will send you a debit card in the post.
Sometimes your debit card (the card number) is used to take payments from your account. Examples of this include payments made for subscription services e.g., a streaming service like Netflix or Spotify, or to pay a bill e.g., a gym membership. The payments can be taken from a debit or credit card. When you get a new card, you will need to update the card details that the service provider has on their system for your account. You must contact any third party that you pay in this way.
One way to help identify them may be to look at your account statements from your existing provider to identify any payments set up on your card.
You should also check whether you have any recurring payments attached to your credit card and take the necessary steps to ensure that these payments will continue to be made.
If you have a credit card with your existing provider, you should receive communication in relation to your card and what you need to do. It may be that your credit card will be moved to another provider, rather than requiring you to do this yourself.
You will not automatically get a new credit card when you move to a new provider. This is because a credit card is a form of credit, and the new provider will need to satisfy itself that you have the means to repay any balance on the credit card before you can receive one. This is the same with overdrafts as explained earlier.
If you need a credit card, you should start to explore your options now and start the process of applying for a new one with another provider.
If you are not able to repay the balance on your credit card, you should talk to your existing provider. Alternatively, you should talk to your new provider about the options available to you, as you may be able to avail of a “Balance Transfer”, which means you may be able to move the balance of your existing credit card to a credit card with your new provider.
You do not have to wait for any period before applying for a credit card with a new provider.
Once you have applied it is difficult to say how long it might take for a new application to be successful with a new provider. You will need to provide proof of your means to repay the balance and the new provider will need to assess this information before deciding whether to give you a credit card.
If you want to know more, you should discuss a credit card application with a new provider.
To apply for a new credit card, you will need some or maybe all of the following: