What is 'automatic debit' in SAP FS-PE - Payment Engine?

automatic debit - Overview

• Component: FS-PE

• Component Name: Payment Engine

• Description: Debit transfers are initiated automatically from the participant's account and credit them to another participant's account.

automatic debit - Details

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  Key Concepts: 
  Automatic debit is a payment method used in the SAP FS-PE Payment Engine component. It is a type of direct debit, where the customer authorizes a vendor to withdraw a certain amount from their bank account on a predetermined date. This payment method is used to automate payments and reduce manual effort. 
  
  How to use it: 
  In order to use automatic debit, the customer must first authorize the vendor to withdraw funds from their bank account. This authorization can be done through an online form or by signing a paper document. Once the authorization is complete, the vendor will set up an automatic debit schedule with the customer’s bank. The customer’s bank will then automatically withdraw the predetermined amount from the customer’s account on the specified date. 
  
  Tips & Tricks: 
  It is important to ensure that there are sufficient funds in the customer’s bank account on the day of the automatic debit. If there are insufficient funds, the payment may be declined and additional fees may be charged. It is also important to keep track of all automatic debits and ensure that they are accurate and up-to-date. 
  
  Related Information: 
  The SAP FS-PE Payment Engine component also supports other payment methods such as credit cards, direct deposits, and wire transfers. For more information about these payment methods, please refer to the SAP documentation.