Standing Orders are a way of setting up a regular, fixed payment from your bank account.
How does it work?
You can set a payment to be withdrawn at a certain frequency (for example, the 1st of each month; or every quarter etc.) for a fixed amount.
You can only setup a Standing Order with your bank. It is not possible to setup a Standing Order with a service provider (unlike a Direct Debit).
The bank pays the amounts from your account automatically on the agreed dates, after which it transfers them to the person’s or organisation’s bank account you are paying. You must inform your bank if the amount or the dates of payment need to change.
What are Standing Orders used for?
Standing orders are typically used to pay rent, a life insurance premium or other fixed regular payments. As the amounts paid are fixed, a standing order is not usually suitable for paying bills such as credit card or electricity bills.
Check out and compare the differences between a Standing Order and Direct Debit:
The main difference to a Direct Debit is that you are the only person who can change the date or payment amount whilst on your Standing Order, these details can be changed by the service provider you are paying only if you have been given advance notice to this effect.
Two payment services …at a glance
| Standing Order | Direct Debit | |
| Setting up service directly with the bank | Yes | No |
| Setting up service with a service provider | No | Yes |
| Amount collected may be changed by the customer | Yes | Yes |
| Amount collected may be changed by the service provider | No | Yes, depending on the agreement |
| Fee for the service | Yes | No |
| Date when amount is collected may be changed by customer | Yes | Yes |
| Date when amount collected may be changed by the service provider | No | Yes, so long as the customer is given advance notice |
| Right to claim a refund | No | Yes |
| Immediate full refund of monies following a claim | No | Yes |
| Period of time from date of payment collection when you can claim a refund | No right to claim a refund | Eight weeks, if authorised under mandate.
Thirteen months if transaction was unauthorised. |
| Right to cancel | Yes, but only through the bank | Yes, by requesting bank or service provider |
