Glossary

Standing order

By Fredrik Filipsson, cofounder of Business Bank Index
Reviewed by Morten Andersen
Definition

A standing order is an instruction a business gives its own bank to pay a fixed amount to a named payee at set regular intervals until the instruction is changed or cancelled.

Information as of 27 January 2026Last reviewed 27 January 2026

General information, not financial, legal, or tax advice. Verify current terms and eligibility with the provider before applying.

A standing order is a regular payment that an account holder sets up and controls. The business instructs its own bank to send a fixed amount to a named payee on a set schedule, for example the same sum on the same day each month, and the bank repeats that payment until the business amends or cancels it. Because the payer sets the amount and the timing, a standing order suits regular payments that do not change, such as rent, a subscription, or a transfer to a savings account. It differs from a direct debit, where the payee requests each amount.

How a standing order works

With a standing order the account holder gives a one time instruction to its bank that names the payee, the amount, the frequency, and the start date, and where relevant an end date. The bank then makes that payment automatically on each due date without asking again. The amount is fixed, so if it needs to change the account holder has to set up a new instruction or amend the existing one. The payer keeps full control and can change or cancel the standing order through its bank at any time. This describes standard standing order practice as of 27 January 2026.

Standing order compared with a direct debit

The key difference is who controls the payment. With a standing order the payer instructs its bank to send a fixed amount on a fixed schedule, so the payer is in control of the amount and timing. With a direct debit the payer authorises a named organisation to collect amounts that can vary, and the organisation initiates each collection. A standing order is well suited to a constant amount such as rent, while a direct debit suits bills that change, such as a utility or a card balance.

When a business uses a standing order

Businesses use standing orders for predictable outgoing payments such as rent, regular supplier retainers, loan repayments of a fixed amount, or moving money into a business savings account. Because the schedule and amount are set by the payer, there is usually no charge to set up a standing order on a standard business current account, though account fees and any charges vary by provider and should be confirmed with the bank.

Frequently asked questions

What is a standing order?
A standing order is an instruction a business gives its own bank to pay a fixed amount to a named payee at set regular intervals, such as monthly, until the instruction is amended or cancelled. The payer controls the amount and the timing.
What is the difference between a standing order and a direct debit?
With a standing order the payer instructs its bank to send a fixed amount on a fixed schedule and stays in control. With a direct debit the payer authorises an organisation to collect amounts that can vary, and the organisation initiates each payment.
Can I change or cancel a standing order?
Yes. Because the payer sets up and controls a standing order, it can be amended or cancelled through online banking, mobile banking, or by contacting the bank. Confirm the cut off for changes with your bank so a payment is not sent before the change takes effect.
Does a standing order cost anything for a business?
Standing orders are usually included with a standard business current account at no separate charge, but account fees and any transaction charges vary by provider. Confirm current terms with your bank before relying on a standing order for regular payments.

Definitions, fees, features, and eligibility change and vary by region. This page was last reviewed on 27 January 2026. Confirm current terms with the provider before applying.

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