A commission that is paid by the insurance company directly to the Payee.

Agency Level commissions are always Direct Pay because they are paid to the agency by the company.

Producer and Manager commissions may be direct pay if it is arranged by the agency that the producers are paid direct.

Direct Pay has an option you can set on the System Preferences Screen, Insurance Commissions Tab.  It can be controlled policy by policy from the Modify Policy Screen or it can be controlled at the Rate Table Level from the Modify Rate Table Set Screen.