The concept of eDDA ≈iQIYI automatic renewal + Didi password-free payment + Alipay deduction agreement。 At its core: "I agree that you will deduct money directly from my account when I spend or when the cycle expires."
eDDA（Electronic Direct Debit Authorization）
eDDA stands for "eDDA", which authorizes other people or organisations to electronically debit money from your account for top-up payments, bill payments, e-commerce payments, etc. One of the value-added services launched by the HKMA in 2018 is eDDA. FPS supports two types of eDDA, namely set up by the payer ("Standard eDDA") and set up by the payee ("Simplified eDDA").
As for the "autopay" service that we usually talk about, it is actually authorizing banks or credit card institutions to transfer funds to other institutions or payees on time. The payer may need to apply to the bank to fill in the form, sign and verify the identity card before completing the autopay arrangement with the authorized bank. With the advent of eDDA, these authorization procedures have been simplified, allowing direct debit authorization to be set up after network verification.
The advent of eDDA has made local payments and transfers more convenient, but the FPS system is not suitable for overseas use. If you are overseas but have set up autopay or eDDA to pay bills, such as insurance, credit card or utility bills, you may need to send money from overseas.
Charges for direct debit authorizations
Many banks charge tens of Hong Kong dollars per transaction for setting up autopay or submitting direct debit authorizations, but if you set up an online banking account, the fee will generally be waived. You should also pay attention to whether the account you are paying for is sufficient for automatic debit, if the amount is insufficient, the bank may charge a fee for returning the autopay.
What is a direct debit authorization?
To allow the payee to receive payments directly from the payer's account, the payer needs to submit a direct debit authorization or an electronic direct debit authorization (eDDA). A direct debit authorization can be set up by the payer to a designated payee to determine its maximum amount, effective date length, and period. At the same time, merchants can also request the payer to set up an eDDA, and after the eDDA takes effect, the bank will pay the relevant payee according to the instructions.
How do I fill out a direct debit authorization form?
Applications for direct debit authorization can be made through submission of forms through branches, standing payment instructions through Internet banking, or "simplified eDDA" procedures from the platform set up by the beneficiary. The processing time for submitting a direct debit application to a branch is generally long, it may take a few working days, if you want to complete it quickly, it is recommended to do so through online banking.
Submit a Direct Debit Authorization (DDA) to the Bank
The direct debit authorization letters of each bank are similar, generally requiring the following information:
- Beneficiary's name, bank number, branch number, account number
- Payer's name and bank account number
- Maximum payment limit
- Expiration date
- Personal Signature (Paper) / Online Security Device Authentication (Online Instruction)
Simplified eDDA for e-wallet setup (eDDA initiated by the recipient)
In addition to submitting a direct debit authorization letter to the bank on the initiative of the payer, the payee can also set up a payer's eDDA through FPS, which is commonly used to store value in e-wallets, and the general procedure is as follows:
- The payee proves to be a genuine customer at the individual SVF (e.g. upload a copy of your ID card)
- Activate the eDDA instruction in the SVF mobile app
- Enter the required information to set up an eDDA, including the payer's bank account number, maximum payment limit, frequency, etc
- Waiting for the SVF to verify the eDDA instruction, the FPS will be submitted to the FPS and then handed over to the payer's bank for processing
- Receive notification of completion of the application from SVF and the bank
How to cancel eDDA/Direct Debit?
Cancelling a Direct Debit is as simple as submitting a cancellation instruction to the bank, which can usually be cancelled within a few working days. As with applying for authorization, you can choose to submit a paper cancellation form at a branch or cancel individual authorization items through Internet Banking. If it is a paper form, it is generally necessary to provide the name of the beneficiary, effective date, and payer account information to be canceled. If you cancel via Internet Banking, you can usually simply click on the cancellation instruction on the payment instruction interface.
Also, if you wish to cancel autopay, you need to pay attention to whether the transfer is a direct debit from your bank or an autopay payment from your credit card. Since the credit card autopay is authorized by the merchant rather than the bank, it can only be cancelled with the cooperation of the merchant. |
Posted on 2025-10-16 13:15:05
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