Whats the difference?

[Alixw]

Can anyone tell me what the difference is between a Standing Order and a Dierct Debit?!

[kempie]

Simply, SOs can only be set up for a fixed transfer amount whereas DDs are flexible (with the necessary notice given).

Also SOs have a time-lag (3 days) between the debit from your acct and the credit to the payee acct; DDs are immediate in effect.

http://www.apacs.org.uk/about_apacs/htm_files/storders.htm

[andy hughes]

In addition, SO's are your instruction to the bank to pay the money from your account to a designated other account. A DD allows the other account holder to extract the money from your account, which can cause problems if you don;t keep an eye on your transactions.

[Gef]

Direct Debits are so "immediate" that the amount can disappear from your account up to 5 days before the "due" date. The Banks are BaXXaXdS.

[Fitzer]

The Direct Debit Guarantee says that you should be informed of the EARLIEST date that the debit should be taken from your account, if you are finding that they are taking the money early then you should complain. My D/D bills always say something along the lines of 'xx pounds will be debited on or after the nth of the month' 

[mrjd2005]

DD are controlled by the company, whereas s/o are controlled by u.

[stevie21]

Gef, you very plainly do not understand how Direct Debits work. Aside from your ignorance, if this does actually happen to you, you're covered by the DD guarantee.

A standing order is an instruction which YOU give to the bank to send money somewhere. You tell them the sort code, account number, amount, frequency etc. Usually this is received 3 or 4 working days after it is sent and is a fixed amount (until you intervene and amend it, if ever).

A Direct Debit is a way of giving certain companies permission to take money from your account. (Only companies which subscribe to the DD guarantee can join in). The company controls *everything* : date, amount etc. so with, for example, credit cards you can have a fluctuating amount (minimum payment). The same time lag is involved but if the company agrees to take it from you on the 4th, they'll process their claim 3 or 4 working days earlier so that this request reaches your account on or after the 4th.

If you have a DD due out tomorrow and call the company to cancel/amend it, they won't be able to as their claim will be in the pipeline.

If you cancel a DD with your bank, you only cancel the "method of payment", not the entire contract between you and the company. If the DD was with someone as reputable as, say, AOL then I would expect them to set up a new DD to continue the payments unless you speak to them and cancel the subscription/contract.

rant over.

[Oneeyedvic]

Just to also let you know that direct debits are the first thing that go through the banking system. ie if you had a direct debit going out on Tuesday, and didn't pay the money in covering this until Tuesday morning, the direct debit would be rejected.

Furher, I bank with NatWest, and if any direct debits are due out on a Monday, it will show on my online account as going out on Monday on the Staurday (it hasn't gone out but it shows that it will).

[Gef]

Exactly stevie21. Read your own answer. They take it out early.

[stevie21]

Yes Gef, exactly. Blame the bank for something that the company that you're paying controls and is completely out of the bank's hands.
I did state in my earlier answer that the company controls *everything* : date, amount etc. which is the part that I think you misunderstood.
Armed with that knowledge, do you still blame the banks?

[Gef]

If a Direct Debit is due on a certain date then the banks should not release the funds before that date.

[Fitzer]

Gef, the bank doesn't know what date the funds are due out of your account, the debiting company tells you what date the money is to be taken, if they take it before that date then you have grounds for complaint. You have, by signing the direct debit mandate, told your bank that the company can draw what money they want when they want, if you can prove to your bank that they monies have been taken incorrectly then they will refund you and take the money back from the company at fault.