Take a look at our bank statement. You’ll see the normal kind of payments leave our account; Rent, Gym Membership, Gas & Electricity Bill & Mobile Phone etc. etc. But all of these payments fall under one of two different kinds of automatic payment methods.
Direct Debit and Standing Order – what’s the difference?
A standing order is an automated payment method set up between a customer and a bank to send payments to other people or organisations.
A Direct Debit is an automated payment method authorised by a customer but set up by an organisation who manage the frequency and amount.
The Key Differences are:
The payer sets up a standing order!
You (the customer) are in control of the frequency and amount of a standing order. You can even change or cancel it without notifying (but we recommend you inform the organisation you are due to pay before to stop any contract breaches)
Direct Debits require your authorisation!
With Direct Debits, The Organisation Chooses The Amount And Frequency (What’s scary but not often a common move for organisations is that they can vary the amount and frequency of payment collections without further authorisation from you)
Fempire Finance
Comments