A direct credit is an electronic transfer in which the payer instructs its bank to credit a named account at another bank. The term is used mainly in the United Kingdom, Ireland, Australia and New Zealand for payments made in bulk through an automated clearing system. Employers use it to pay wages, governments to pay pensions and benefits, and businesses to pay suppliers and dividends.
It is the mirror image of a direct debit, where the recipient pulls money from the payer's account under a mandate. A direct credit is a push payment: the payer starts it, so the recipient needs to supply only account details. In the United Kingdom the service is Bacs Direct Credit, run through Bacs on a three-working-day cycle, with funds arriving on the third day. The equivalent in the United States is direct deposit by ACH credit, and in the euro area the SEPA credit transfer.