What is Standing Order?

A standing order is an automated bank payment where the payer instructs their bank to send a fixed amount to a specified recipient on a regular schedule (weekly, monthly, quarterly, etc.). The payer sets it up and controls it entirely.

• **Key characteristics:**
• Fixed amount: — the same sum is paid each time (changes require the payer to update the instruction)
• Payer-controlled: — only the person paying can set up, change, or cancel it
• Regular schedule: — payments occur on specified dates automatically
• No mandate needed: — the recipient does not need to be authorised to collect

• **Common uses:**
• Rent payments: — tenants set up monthly standing orders to landlords
• Regular retainer fees: — a client pays a fixed monthly retainer to a consultant
• Loan repayments: — fixed instalments paid to a lender
• Savings: — transferring a set amount to a savings account each month

Standing order vs direct debit: | Feature | Standing Order | Direct Debit | |---|---|---| | Who controls it | Payer | Payee | | Amount | Fixed | Can vary | | Setup | Payer's bank | Mandate signed by payer | | Consumer protection | Limited | Direct Debit Guarantee |

For freelancers and small businesses: Standing orders work well when a client pays you the same amount every month (e.g. a retainer). However, if invoices vary in amount, a standing order won't work — you'll need to invoice normally or use direct debit.

Cancellation: The payer can cancel a standing order at any time through their bank. As the recipient, you have no ability to cancel or modify it.