Direct Debit

[millerxxx]

what is the difference between direct debit and a standing order
thank u

[Mamyalynne]

http://ask.barclays.co.uk/help/day2day_banking/orders_debits

[factor-fiction]

A direct debit fixes the amount to be taken. It is 'taken' by the recipient of the payment.The payer can't vary the amount without the agreement of the other, although he/she can stop the DD
A SO is completely under the control of the payer.

[Hopkirk]

Think of it as push and pull.

With a standing order you push money to someone.

With a direct debit they pull it from you.

[wiltsman]

I note that the link to Barclays Bank explains the difference between Direct Debits and Standing Orders, which 'millerxxx' requested.

There is however another payment which ought to be avoided at all costs, and that's the Continuous Payment Authority.

This payment is not set up by yourself, but is like a Direct Debit in that it's set up by the organisation you're paying into. Unlike a Direct Debit though, there's no guarantee, and no way you can do anything about controlling the amount or the frequency money is taken from your account.

If something does goes wrong, you're the one who will have to liaise with the rogue company and attempt to get things back on course.

Unlike a Direct Debit, you cannot instruct the bank or building society to stop or amend the payments.

http://moneyfacts.co.uk/guides/banking/what-is-a-continuous-payment-authority/

[Old_Geezer]

You control a standing order. With direct debit you give carte blanche for others to dip into your savings whenever they opt to. It is the work of the devil who has persuaded the majority and so it gets imposed on all.

[wiltsman]

I note that the link I gave now states:

"You can cancel a continuous payment authority either by telling the company, or by telling your bank.

If you tell your bank to stop the payment being taken, it has to do so. However, you should make sure that you inform the company taking the payment – particularly where you have a contract or credit agreement in place. If this is the case, you may still need to make any remaining payments".

Apologies if I misled anyone - when I worked in a Building Society a few years ago it was not possible to cancel a Continuous Payment Authority quite so easily, but even so it's a payment system that should be avoided. I still don't think that informing a company you no longer wish to make payments this way is going to be that easy.

[grasscarp]

There are also variable direct debits where you give the authority to take varying amounts directly from your account. These days most bills are taken by direct debit. Lot of information here miller. Hope it helped you.