What Is Automatic Debit and How to Authorize It?
by Julio Sánchez, COO of Zimplifica
What Is Automatic Debit and How to Authorize It?
Want to stop worrying about paying bills on time?
Automatic debit is a safe and convenient way to pay for your services without having to remember due dates every month.
It allows you to authorize a company to withdraw a set amount from your account on a specific date. It's fast, reliable, and increasingly used in Costa Rica.
But how do you activate it? What do you need? And what happens if you no longer want it?
Here’s a simple, step-by-step explanation.
What Exactly Is Automatic Debit?
It’s a permission you give to a company (like your internet provider or bank) to withdraw money from your account every time a payment is due.
For example: if you pay for cable every month, automatic debit takes care of that payment for you—no need to open the app or visit the bank.
What Does “Domiciliar un cobro” Mean?
According to the Central Bank of Costa Rica (BCCR), "domiciliar un cobro" means authorizing your bank to make an automatic payment on your behalf.
This authorization is done using a form called Order of Domiciliation. You fill in your personal and service-related details, and the process kicks off.
There are two ways to do it:
-
With the company charging you (electronic domiciliation)
You go to the company (like your power company or loan provider), fill out the form there, and they send it to your bank via SINPE. -
Directly through your bank (direct domiciliation)
You can also go straight to your bank with your service info, and they’ll set up the automatic debit from their side.
Both options are valid—the key is that you’re giving explicit authorization.
What Information Will You Need?
It’s a straightforward process. Here’s what you’ll typically be asked:
About you (the person paying):
- Full name
- ID number
- Account number (IBAN)
- Account currency (colones or dollars)
- Maximum amount that can be debited
- End date for the authorization
- Your signature (paper or digital)
About the company charging you:
- Company or individual’s name
- Their ID or registration number
About the service:
- Name of the service (e.g., loan, cable, electricity)
- Service code (e.g., contract or meter number)
- Name under which the service is registered (can be yours or someone else’s)
How Long Does It Take to Activate?
Once the authorization is submitted, the system takes two business days to activate it.
So, if you complete the process on a Monday, it’ll likely be ready by Thursday.
During this time, the bank registers the data and prepares the first scheduled payment.
Important: If your next due date is too close, you might need to pay manually just this once—future payments will be automatic.
What Are the Benefits?
- No more missed payments
- Avoid late fees
- Everything is logged in your account
- You can cancel anytime
- It’s convenient, especially if you’re busy
What If You No Longer Want It?
You can cancel it anytime. It’s not mandatory or permanent.
You have two ways to do it:
- Through your bank: cancel it via their app, phone support, or in person.
- Through the company charging you: if you authorized it there, you can cancel it directly with them.
Try to cancel a few days before the next scheduled payment. If you cancel too close to the date, the charge might still go through.
What If You're Charged Incorrectly?
If you see a charge on your account that you didn’t authorize, already canceled, or don’t recognize, you have the right to dispute it. You don’t have to just accept it.
What Should You Do?
-
Contact your bank immediately
All complaints about unauthorized debits or failed credits must first go through your financial institution using a service called REF (Reclamación de Fondos). -
Have the transaction reference number ready
This is a 25-digit number shown on your payment receipt (debit or credit). If you don’t have it, ask your bank or the company that initiated the transaction. -
Explain the issue
These are the common types of disputes:- Unauthorized or incorrect debits
- Credits that weren’t applied or were applied late
- Other SINPE-related issues (like excessive fees, missing notifications, etc.)
-
You have 30 calendar days to file
The complaint must be submitted within 30 days from the date of the transaction. After that, SINPE won’t process it, and you’ll have to resolve it directly with the merchant or service provider. -
What if the bank doesn’t help?
If your bank doesn’t respond properly, you can escalate your case to the Central Bank of Costa Rica, specifically to the National Electronic Payments System Department.
When Is Automatic Debit a Good Option?
- If you have fixed monthly payments
- If you live abroad and can’t make payments locally
- If you often forget due dates
- If you want to organize your finances with less manual effort
In Summary
Automatic debit helps you stay on top of your payments without hassle.
It’s easy to activate, simple to manage, and can be canceled whenever you need. Just stay alert to what you authorize and regularly check your transactions.
An ideal option for anyone seeking more peace of mind in their financial life.
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