Standing Order
BeginnerA standing order is an instruction, common in the United Kingdom and Europe, that a customer gives to their bank to pay a fixed amount to another account at regular intervals, such as weekly or monthly.
A standing order is set up and controlled by the person paying. They decide the amount, the recipient, how often the payment is made and when it stops. The recipient cannot change the amount or timing.
Standing orders are often used for regular fixed payments, such as rent to a landlord, transfers into a savings account, contributions to a family member or regular donations.
For example, a tenant might set up a standing order to pay 1,200 to their landlord on the first day of every month.
The key difference from a direct debit is control. With a standing order, the payer controls the payment and must change it themselves if the amount needs to change. With a direct debit, the company collecting the money controls the amount and timing, within the rules of the scheme. In the United States, a similar arrangement is often called a recurring transfer or automatic transfer, set up through online banking.
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