When you have bills to pay, it is important to find a way to send money in time so that you do not miss any payment deadlines. To find the best way to pay you to need to understand what options are available to you and how they work, so that you can have peace of mind that your payments will be received on time, each month.
One payment method available is a Standing Order. To help you work out if this payment method would work well for you, we have explained its advantages and disadvantages below.
What is a Standing Order?
A standing order is a way of making payments automatically on dates of your choosing. You are in control of every standing orders you set up and can control how often they are paid, as well as the amount of money that is sent each time.
A standing order is not the same as a Direct Debit as you are in control of sending the money to the recipient, compared to a Direct Debit which is when the recipient requests money from your bank and bank account.
What Are the Advantages of Standing Orders?
There are many great advantages to having a standing order, some of the main reasons include:
- You are in control of what is sent from your current account and how much is sent.
- You can set up standing orders and cancel standing orders with ease and this can usually be done through your online banking or your mobile banking app.
- They tend to be free or very cheap to set up and maintain.
- It is an easy way to send regular payments such as your rent or make payments to a family member.
- It is a good way for people to budget when they know to expect your payment on a specific date each month.
What Are the Disadvantages of Standing Orders?
However, there are also some disadvantages to standing orders, and you should consider these before you proceed with setting one up:
- If you want to change the date or the amount of your standing order, then you will need to cancel it and instate a new one.
- If you do not set yours up in time, then you run the risk of missing a payment date and incurring late payment fees on your account or from the person or business you’re making the payment too.
- If for any reason your scheduled payment does not send, you’re responsible for noticing and rectifying the issue before you miss the payment date.
- Many businesses do not like to be paid by standing order as they do not have control of the process.
How Do I Set Up a Standing Order?
To set up a standing order, you will generally need to use your online banking account or mobile banking app and share the details of the account you wish to send money to along with the date you want the first payment to go and the frequency of the payments. It is a simple process and you can set one up in hardly any time at all!
How Can I Cancel a Standing Order?
Just like setting one up, cancelling a standing order is just as easy (if not easier!). All you need to do is head to your mobile banking app or online banking, and head to your account section where you’ll usually be able to see a list of your standing orders and direct debits. All you need to do is click on the standing order, and depending on who you bank with, there will be an option to cancel or deativate the order and prevent any future payments from leaving your account.
Be aware though, you should cancel any standing orders 48 hours before the payment is due to leave your account. As banking providers can sometimes process the payment ready, ahead of the due date. Leaving it too late could run the risk of the payment being made even if you’ve cancelled it.
Alternative Banking with Suits Me
All of our account holders will receive a contactless visa debit card to make payments, online, in-store and over the phone and we also offer a whole variety of banking features including:
- The ability to manage direct debits,
- Send money home and abroad via a bank transfer,
- Gain access to our exclusive cashback reward programme where you’ll automatically get a percentage of your money back when you use your Suits Me debit card with our retail partners.
Opening a Suits Me account takes 10 minutes and you’ll gain access to your online banking immediately so you can start managing your money. We don’t ask for proof of address or run a credit check. We accept 99.8% of all applicants – so if you’re looking for a suitable alternative banking solution apply today!