Difference between a Standing Order & a Direct DebitPosted on Jun 18, 2018
What’s the difference between a standing order & a direct debit?
Standing orders and direct debits are both instructions to make payments from your account, for example to pay for gas, electricity or council tax.
A standing order is when you ask your bank to pay a fixed amount at certain intervals, e.g. monthly. You can specify a final payment date, or make the payment ‘until further notice’. You can cancel the payment at any time, by contacting your bank. If the amount you need to pay changes, for example because of a council tax increase, you’ll need to contact your bank to vary the amount.
A direct debit is when you authorise somebody else to take payments from your account. You give the other party permission to set up the payment. The amount may vary, but you must be notified in advance of the amount and the date on which the payment will be taken.
FAIRshare uses standing orders so you’re in charge of your payments to FAIRshare. Email us or call Member Services on 01952 200200 for a standing order form, so you can set up a regular standing order from your bank account to pay money in to your FAIRshare savings account or to repay a loan. Complete the form & return it to your bank, or if you use online banking, you’ll be able to set up a standing order online.
When setting up a standing order it’s very important to quote your FAIRshare membership number & surname as the payment reference, so the money can be deposited into your account.
It’s always important to check your bank account, either from monthly statements or online. If you see that an amount has been wrongly taken by direct debit, you need to contact your bank, and they will credit it back to you straight away under the direct debit guarantee.
You can cancel both standing orders and direct debits at any time by contacting your bank. You should also notify the organisation you were paying.