Even though direct debit transactions and standing order payments are both automated transfers and used for paying bills, few key points make them different. Let’s take a look:
the sum of a transaction
If you choose standing order as the way to make your payments, the sum will always be fixed. For direct debits, the transfer’s amount can be different for every transaction.
adjustments
Changes in direct debit payments can be only initiated through your bank. For example, if you want to change something or cancel these regular transfers, you need to inform your financial provider. In their turn, they will notify your debtor about this. Then, the debtor will make changes accordingly. You cannot change anything here on your own.
Standing orders are quite the opposite. Here the payer is in charge of initiating transactions and implementing any changes. That is why only the payer can cancel and change recurring payments whenever they want to.
set up
A standing order can be set up within a few minutes right from your mobile banking app. The first transfer will be wired on a start date of standing order payment.
If you want to make payment via direct debits, you first need to contact the company you’ll be paying to. They will send you a mandate to sign and arrange everything with your financial provider.