Published on May 19th, 2011 | by Pete0
Standing on Ceremony, or Directing with Orders?
Q – What is the difference between a direct debit and a standing order? Are there any differences in the amounts of rights you have with these payment options? – Gloria
Good questions Gloria, and ones that people often get themselves mixed up about. To put it simply, signing up to a direct debit agreement means that you are giving your bank or building society permission to allow companies to take money from your account. Direct debits are very well protected and safe.
If you set up a standing order you are instructing your bank or building society to transfer a certain amount of money to a certain account at a certain time. This is normally a repeating transfer, which may happen once a month, to pay rent or repay a loan for example. You can cancel these arrangements at any time, and usually without much fuss.
I hope this helps….