banks

[sunflower68]

I am confused. What is the difference between a standing order and a direct debit?? I know I should know this already but I really don't.

[vehelpfulguy]

I think one is PUSH the other PULL.

Say I decide to pay one of my children �20 each month. I set up a standing order to send money from my account to theirs.

My children have no control over the money and cannot, for example, alter the amount.

So that is me PUSHING the money from my account to theirs.

If I want to stop the standing order I write to the bank and ask them to stop paying it.

A direct debit allows a company like the Gas Board to PULL money from my account.

Once I sign a direct debit they can take the money out each month, and as long as they let me know, they can change the amount up or down.

And if I want to stop the direct debit I have to write to the Gas Board and ask them to stop doing it, not the bank.

So with a standing order I am in complete control (PUSH), with the Direct Debit I am still in control, but it is the other party who take the money from my account (PULL).

[sunflower68]

you have summed it up perfectly; I never understood the jargon; why can't people be clear like you?

In fact I would go so far as to say you are an extremely helpfulguy, vehelpful guy : )

[ryepie]

If you use online banking, most will let you cancel Direct Debits or Standing Orders immediately on their website ithout informing anyone else...of course, especially in the case of Direct Debits, it is a good idea to tell them that you have done so!

[kempie]

One aspect of the Direct Debit Guarantee is the ability for customers to cancel a direct debit at any time by writing to their bank or building society. Although a copy should also be sent to the originator (the person receiving the payment), this is a request not an instruction.