Direct Debit vs Credit Cards: Which is the Best Way to Take Recurring Payments?

Updated: May 29, 2019

Direct Debit and Credit Cards are two methods used for taking regular payments. Both enable businesses to take payments from their customers easily, but there are some key differences between the two that we will explore in this article.




Before we delve into our comparison, it is important to note that the term ‘Credit Card’ in this article refers to card transactions processed through the Visa and MasterCard network. At Curlec, we process all transactions through PayNet (Payments Network Malaysia). This enables us to utilise the Direct Debit payment system for Malaysian issued Credit Card accounts.

Both are Automatic Payment Methods

A Direct Debit is an authorisation from a customer that enables a business to take payments from their bank or locally issued credit card account. Customers authorise these payments by completing an online mandate and this also acts as an instruction to their bank to allow the Direct Debit. These payments can vary in frequency and amount. For 5 facts about Direct Debit, check out our previous post.


A recurring card payment is an authorisation given by a customer for a business to take payments from them by credit card. Customers must supply a business with their credit card details, such as their 16 digit card number. These payments can also vary in frequency and amount.


Direct Debit vs Credit Cards

Below is a comparison between these two payment methods:

Which is the Best Way to Take Recurring Payments?

Direct Debit and Credit Cards can both be used to take recurring payments automatically of varying amounts and frequency.


Once implemented, both payment methods are easy to run and offer similar benefits. However, the low penetration rate of credit cards in Malaysia mean that businesses are severely limited in whom they can offer this payment method to. Additionally, the high fees of processing transactions through the Visa and Mastercard payment networks, especially when compared to that of Direct Debit, ensure that this is a costly method to run for businesses.


As a result of this, we believe that Direct Debit is the best way to take recurring payments.


If you would like to find out more about Curlec and Direct Debit, please contact us through the form at the bottom of this page.

0 views
Find out if Direct Debit works for you!

Schedule a Free Demo now by entering your contact details below. 

 Email: hello@curlec.com   |   Tel: +603 7629 5701   |   Unit 05-01, Tower A, Vertical Business Suite Avenue 3, Bangsar South 59200, KL.

© 2019 by Curlec Sdn. Bhd