What Counts as a Direct Debit for a Bank Switch?
Most UK bank switch offers require two active direct debits. Learn the exact difference between BACS mandates, standing orders, card subscriptions, and test debits.
Nearly every UK bank switch bonus comes with a key requirement: you must switch an account that has at least 2 active Direct Debits.
If you submit a switch without meeting this rule, the automated verification system will flag your application, and you will miss out on the £150–£200 bonus cash.
Here is a clear breakdown of what banks actually accept, what they reject, and how to verify your mandates before switching.
The Rule of Thumb: BACS Mandates Only
A Direct Debit is a formal legal agreement (a BACS mandate) giving a company permission to pull money directly from your bank account.
Banks look for registered BACS Direct Debit mandates attached to your account number. They do not look at how much money the Direct Debit collects, nor do they care if it collects 30p or £300.
Here is how different payment types stack up:
| Payment Type | Counts as a Direct Debit? | Why? |
|---|---|---|
| BACS Direct Debit Mandate | YES | Registered on your account via BACS. |
| Micro / Low-Cost Direct Debit (e.g. 25p–30p) | YES | Official BACS mandate created with an Originator Identification Number (OIN). |
| Charity Direct Debit (£1–£2/mo) | YES | Official BACS mandate set up with a registered charity. |
| Standing Order | NO | Set up by you to push money out. No BACS mandate exists. |
| Card Subscription (Netflix, Spotify, Amazon) | NO | Uses a 16-digit debit card number (Continuous Payment Authority). |
| Klarna / Clearpay Card Payments | NO | Continuous Payment Authority on your debit card. |
Why Standing Orders and Card Payments Don’t Count
1. Standing Orders
A standing order is an instruction you give your bank to pay a fixed amount to someone on a regular basis. Because you control it directly through your banking app, no external company holds a Direct Debit mandate over your account. Banks specifically filter out standing orders when checking switch eligibility.
2. Card Subscriptions (Continuous Payment Authority)
Services like Netflix, Spotify, Gym memberships, or iCloud usually bill your 16-digit debit card number. Even though money comes out monthly, it is classified as a card payment, not a Direct Debit. When your account is switched via CASS, debit card details are not transferred — only BACS mandates are moved.
Do Both Direct Debits Have to Collect Payment Before the Switch?
In most cases, yes.
While the legal requirement is simply that an active mandate is registered on your account, banks verify activity by checking that at least one payment has cleared under the mandate within the last 30 to 90 days.
If you set up a new Direct Debit, wait until:
- You see the mandate listed under “Direct Debits” in your banking app.
- At least one payment (even 30p) has successfully debited from the account.
Once the first payment clears, the mandate is marked as active in the BACS database and is 100% ready to be transferred during a switch.
Can You Have Two Direct Debits from the Same Provider?
Generally, yes — provided they have separate reference numbers or OINs.
For example, if you have two separate subscriptions or policies with the same provider, each generates its own distinct BACS mandate. However, to be 100% safe and prevent any automated system glitches, experienced switchers recommend using two different providers (e.g. one charity donation and one low-cost Direct Debit service).
Do Any Banks Exclude Low-Value Direct Debits?
The vast majority of UK banks (including NatWest, Lloyds, Barclays, First Direct, Santander, and HSBC) accept any valid BACS Direct Debit, regardless of value.
Occasionally, a specific promotional terms document might state that Direct Debits must be for “utility or household services”, though in practice CASS transfers all valid BACS mandates indiscriminately. Always check our specific offer breakdowns to see verified eligibility notes for each active deal.