Everyday money · General financial education

Standing order

A standing order is a recurring credit transfer you set up: fixed payee, amount and rhythm, pushed from your account.

In more detail

You control start, change and end. Unlike a direct debit, the payee does not pull. Timing and costs depend on bank and rail. Finmon recommends no bank.

Background

You send the payment. A direct debit lets someone else pull it. This sits next to how payments move, cashflow, direct debits, debt, and access to money. Finmon does not recommend a bank.

An example

On the 1st of each month you transfer 400 rent via standing order. You can change amount or date or cancel the order.

A common misconception

Standing order means the firm may pull any amount.

You set fixed transfers. Open-ended pulls need a mandate (direct debit).

Source: BaFin · Überweisungen und Lastschriften. Version 0.2.0. Finmon explains. It does not advise. Not investment, tax or legal advice.