The stand (or standing ) instructions (or the instruction of the banker) ("payer") gives its bank a payment that is regularly set to someone else's account (" ). This instruction is sometimes known as the banker command.
They are usually used to pay rent, mortgage or other fixed payments. Because the paid amount is fixed, standing orders are usually unsuitable for paying variable bills such as credit cards or gas and electricity bills.
Standing orders are available in the banking system in a number of countries, including Germany, Bulgaria, England, Barbados, the Republic of Ireland, India, the Netherlands, Russia, Pakistan, Malaysia, Ukraine and possibly many others. In the United States, and other countries where checks are more popular than bank transfers, similar services are available, where banks automatically send checks to specified payees.
Video Standing order (banking)
Country differences
German
A standing order ( Dauerauftrag ) can run for a certain amount of payment, time period, or until canceled.
Netherlands
Standing orders (periodieke overschrijvingen) are available for a certain period of time or until canceled, to the recipient in the SEPA space. They should not be confused with doorlopende machtigingen (direct periodic debit). Alle banken van NL
Japanese
The standing order (??????) runs until it is canceled. They can be canceled at the request of the account holder
South Korea
The standing command (???????) runs until it's canceled. They can be canceled at the request of the account holder. The bank charges a fee (average 3000KRW) per transfer.
Spanish
The standing order ( adeudo por domiciliaciÃÆ'³n ) can be set to run for a certain period of time, not indefinitely. They can be canceled at the request of the account holder.
Switzerland
In Switzerland, standing orders are available for a certain period of time or until canceled. They can be made for receivers in SEPA space.
UK & amp; Ireland
A standing order may be set to run for a specified period of time, or indefinitely, and may be canceled at the request of the account holder. The standing order is standardized by the UK Shipping Administration trade body. In 2008 a number of banks began introducing Faster Payments as a transfer method for standing orders when available, in lieu of the slower BACS system; with this payment method reaching the receiving account on the same day, rather than after a delay of three days or more.
Maps Standing order (banking)
Difference from direct debit
The standing order is different from direct debit; both are methods of setting up recurring money transfers from one account to another, but both operate in different ways. The fundamental difference is that standing orders send payments set by payers, while direct debit is determined and collected by payee .
- The standing orders can be set and modified only by the payer, and for the amount determined by the payer to be paid at a specified time (usually a fixed sum in the specified interval example). The amount may be paid into any bank account, which is not necessary for the organization that the paying bank checks for.
- Direct debit requires the payer to authorize the payee to take direct debit for any amount at any time, or to request the bank to fulfill the debit request directly from a particular payee. The payee has full control over the payment. They may vary the amount and frequency of payments without further authorization from the customer (subject to customer provision with prior notice required). Payers do not have direct control over these payments, but may cancel direct debits at any time, for no reason required, and require the return of disputed payments. It is impossible to allow someone to direct debits; only organizations that have contracts with paying banks, or have been checked by them, can do this.
See also
- Overdrafts
References
Source of the article : Wikipedia
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