1. What is Direct Debit?

Direct debit is a payment method that enables a business to automatically debit a customer’s bank account with the customer’s permission, within agreed dates.

2. What can Direct Debit be used for?

It’s commonly used for:

• Subscriptions
• Loan repayments
• Bills and utilities
• Installment payments
• Memberships or recurring services

3. How does Kora’s Direct Debit work?

A business sets up a debit request with the customer’s bank details. The customer approves it by completing a one‑time ₦50 verification done through NIBSS. Once approved, the business can charge the customer based on the agreed schedule or as needed.

4. Why does the customer have to pay ₦50?

The ₦50 is a required NIBSS verification fee used to confirm that the customer is the real owner of the bank account. It happens only once per mandate authorization.

5. How long does the verification take?

Usually just a few minutes after the ₦50 payment is completed.

6. What kinds of Direct Debits does Kora support?

Two types:

• Variable debit – This debit type allows the business to charge the customer’s account when needed, and the amount can change.
• Fixed debit – This is a set amount that is debited automatically on a set schedule (e.g., monthly, weekly, yearly).

7. Can a customer be charged without knowing?

No. The customer must have approved the authorization before any debit can occur.

8. What happens if the customer does not have enough money when a debit is attempted?

The debit will fail. No money will be removed from the customer’s account.

9. Can a direct debit expire?

Yes. Each authorization has a start and end date. After the end date, it stops automatically.

10. Does the business have access to the customer’s bank account or balance details?

No. Merchants only receive permission to debit the specific amounts approved. You cannot view the customer's balance or perform unrelated transactions.