Standing Orders are a way of setting up a regular, fixed payment from your bank account.
You can set a payment to be taken at a certain frequency (for example, the 1st of each month; or every quarter etc.) for a fixed amount.
The bank pays the amounts from your account automatically on the agreed dates, and transfers them to the person’s or organisation’s bank account you are paying. You must tell your bank if the amount or the dates of payment need to change.
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.
The main difference to a Direct Debit is that you are the only person who can change the date or payment amount on your Standing Order where these details can be changed by the service provider you are paying only if you have been given advance notice to this effect.
Three payment services …at a glance
|Standing Order||Direct Debit||Continuous Payment Authority|
|Setting up service directly with the bank||Yes||No||No|
|Setting up service with a service provider||No||Yes||Yes|
|Amount collected may be changed by the customer||Yes||Yes||Yes|
|Amount collected may be changed by the service provider||No||Yes, depending on the agreement||Yes, depending on the agreement|
|Fee for the service||Yes||No||No|
|Date when amount is collected may be changed by customer||Yes||Yes||Yes|
|Date when amount collected may be changed by the service provider||No||Yes, so long as the customer is given advance notice||Yes, so long as the customer is given advance notice|
|Right to claim a refund||No||Yes||No|
|Immediate full refund of monies following a claim||No||Yes||No|
|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.
|Customer may claim a refund from bank if payment was carried out without authorisation.|
|Right to cancel||Yes, but only through the bank||Yes, by requesting bank or service provider||Yes, but only by requesting the service provider|