Unlike a standing order, where you push a fixed amount, a direct debit lets the creditor pull what is currently due. This is essential for variable bills like electricity, mobile phone usage or credit-card statements, where the amount changes every period. The Swiss equivalent is LSV+ (for individuals) or BDD (for companies). In the eurozone the relevant scheme is SEPA Direct Debit (Core and B2B).
Consumer protection is strong: under SEPA Core rules, you have eight weeks to request a 'no-questions-asked' refund of any direct debit, extending to 13 months if the original mandate was not authorised. In Switzerland, LSV+ also allows individuals to revoke a debit within 30 days of debit confirmation. The bank simply credits the money back and the dispute is resolved between the parties.
To set up a direct debit you sign a mandate that includes your IBAN and an authorisation reference. Always check the mandate carefully — once signed, the creditor can submit collections without further consent until you cancel the mandate via your bank. Review your bank statements monthly and cancel debits you no longer recognise.
A renter authorises Swisscom to pull her monthly mobile bill (typically CHF 39 but variable with roaming). In June she travels and the bill rises to CHF 87. The debit clears on the 5th of July, she sees it the same day in her e-banking app, and she could request a refund up to 30 days later if disputed.