What are direct debits and standing orders?

How they work

They both let you set up an automatic payment from your bank account to another account. The payment goes out regularly, usually once a month.

The difference is:

Both help you to avoid missing payments because they come out of your account automatically. You just need to make sure there is enough money in your account to cover the amount each time.

What if there is not enough money in your account?

This depends on your bank. They could refuse to send the money and charge you a fee. If the payment is for a bill, you may also have to pay a fee to the company you owe money to. Alternatively, the payment could go ahead but put you in your overdraft, which could also come with a fee from your bank.

Who can use direct debits and standing orders?

You usually have to be older than 16 or 18 to use them. You can send both types of payment from:

Which should you use?

Standing orders let you control the payment yourself through your bank, but direct debits are useful for paying bills because the company can take the exact amount they need.

Here are some of the ways you can use each payment type:

How to use direct debits

You can set direct debits up to automatically pay bills straight from your bank account.

You can pay bills from businesses like:

The amount needed is taken from your account directly by the business, which means you do not control the amount paid. However, they must tell you how much they will take in advance, usually with a bill, email or online statement.

How to set up a direct debit

You can only set up a direct debit through the company you need to pay. You can do this online, by phone, by post or by filling out a form in person to confirm:

How to cancel or amend a direct debit

You can contact the company you pay to cancel a direct debit or change details, like the date they take the money.

You could also cancel it by contacting your bank, but the company could charge you a cancellation fee.

What is the Direct Debit Guarantee?

It protects your money when you use direct debits. Every company that offers them has to sign up to the Direct Debit Guarantee. This offers the following protection:

When you set up a new payment you should be given a copy of the Direct Debit Guarantee.

How to use standing orders

You can set up a standing order to send the same amount of money to another account in the UK on a regular date.

You can use them to pay an account in the name of:

The amount stays the same unless you change it, and they can last until a date of your choice or until you cancel it.

The funds usually arrive on the same day because they are sent through the bank's faster payments service, which is also used if you make a bank transfer online.

How to set up a standing order

You can set up standing orders yourself through your bank either:

You need to provide the following details:

How to cancel or amend a standing order

Contact your bank or log in to your online banking if you need to cancel a standing order or amend its:

How to transfer them to a new bank account

If you switch to a new current account with another bank, your direct debits and standing orders will be automatically moved over to your new account.

This means all your payments can continue from your new account without you needing to change them yourself.