"Standing order " , "Direct debit"

[Radman]

Hi,

Could anyone please tell me the differences between " Standing order" and " Direct debit " ?
I am not sure but I want to know if there is any difference in the meaning or we can use it in same situation or not.

Thanks in advance.

 

[emsr2d2]

A standing order takes the same amount of money on the same day of every month from your bank account. The amount cannot vary without the company which is in receipt of the money telling you that they want to change it.
A direct debit is a variable amount which goes on the same day of every month.

For example: the property management company in charge of the building where I live charges a monthly fee for its services. That fee never changes. I pay them £90 per month on the 1st day of the month.
However, my mobile phone contract amount changes depending on how many calls I have made, how much data I have used. The lowest amount they take on the 1st day of every month is £38 because that is the basic standing charge. If I run up extra charges through calls or data usage, that amount is taken out on top of the £38. Last month, for example, my payment was £47. I only find out how much will be taken when they email me my bill a few days before the money is taken from my bank account.

They are not interchangeable. You either agree to a standing order or to a direct debit in relation to a regular payment you make.

 

[BobK]

:up: They're definitely not interchangeable.

Hi,

Could anyone please tell me the differences between " Standing order" and " Direct debit " ?
I am not sure but I want to know if there is any difference in the meaning or we can use it in same situation or not.

Thanks in advance.

They're what they say:

Standing order - an order to your bank to make regular payments (the order stands from month to month, or sometimes from year to year)
Direct debiting mandate ('DDM', often referred to as a 'direct debit) - mandate issued to your bank that allows a named company to debit varying amounts to your account directly.

b
PS 'mandate' and 'order' are largely synonymous. The banks chose a different word to emphasize the difference between the two kinds of instruction to the bank.