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EDDI - Eazipay's Direct Debit Interface. An online portal to access and manage your Direct Debit accounts. find out more

small business guide to Standing Orders and Direct Debits

What is a Standing Order?

A Standing Order is, is a regular payment which you instruct your bank to make on a regular basis. You decide how much you pay and the frequency with which payments are made.

Typically, Standing Orders are used, for example, to make rent payments, monthly charity contributions or regular payments into a savings account.

A Standing Order amount will never vary. It will never change unless you make a change.

Standing Orders also have an advantage of speed of transfer. By making use of the Faster Payment Scheme, payments will be processed on the same day. Some consider Standing Orders to be simpler than Direct Debits, mainly because the business is not involved in claiming payments.

As the customer, you ‘push’ the payments out of your account to the recipient, rather than a business ‘pulling’ them from your account.

At set times, your bank simply sends the money into the beneficiary’s bank account (the beneficiary can be anyone) and only you can alter the payments.

However, this inflexibility means that Standing Orders offer less consumer protection.
With a Standing Order, you decide how much, to whom and the amount will never change. You can use Standing Orders to pay anyone from your landlord to your children’s pocket money. Simplicity does sometimes come with a risk, so make sure you are in control.

If a payment does go out in error, you have no protection as the mistake will be yours.

What is a Direct Debit?

Direct Debits are a little different. When you agree to set up a Direct Debit you are authorising a company to take an agreed amount from your bank account at specified intervals – weekly, monthly or yearly for example. This relationship is created by signing a Direct Debit mandate.

Direct Debits are often used to pay regular bills such as rent or mortgages, mobile and household phones and energy and utility bills.

Direct Debits have built-in flexibility which means the amount and frequency with which they are collected can vary – unlike Standing Orders where the amount you ‘push’ out of your bank account remains the same.

This flexibility means that businesses can claim different amounts at different times. For example, your mobile phone bill is unlikely to be the same each month and the Direct Debit mandate allows your mobile phone provider to claim the money you owe.

Direct Debits also have valuable built-in protection as you, the customer, are covered by the Direct Debit Guarantee.

In order to be authorised to offer a customer a Direct Debit payment method, all companies are subject to a strict vetting process. Once approved, they are required to give indemnity guarantees through their bank.

If a bank or building society wants to offer its customers the benefits of paying by Direct Debit, they are obliged to accept the terms of the Direct Debit Guarantee. The guarantee states that your bank should refund disputed payments without question, pending further investigation. It says that:

  • The customer must be notified in advance if there is to be a change to the amount to be collected.
  • If a bank or building society makes an error, then you are guaranteed an immediate and full refund.
  • Direct cost savings. Businesses can eliminate the use of cheques which saves money and postage costs.
  • You can cancel a Direct Debit at any time by letting your bank or building society know. You may be asked to confirm the cancellation in writing and as a ‘belt and braces’ exercise you should also notify the organisation collecting the Direct Debit.

    Remember that under the terms of the Direct Debit Guarantee, any disputed payments must be refunded in full by your bank of building society, without question until a further investigation is carried out.
★★★★★

James Simpson
SkinViva Ltd
Wonderful company. They offer a very efficient service with a quick turnaround time between Direct Debits being processed and the funds being transferred to your business. They provide good reporting that has helped our business gain a better understanding of our own clients. We've been with Eazipay for several years and all throughout that time we have received great customer service that has a very personal feel to it. It can often feel like you're their only customer!

★★★★★

Michelle
John Cashin Tuition
We have been using Eazipay for our private tuition business for approximately seven years and we couldn't be more impressed. Deciding to use Eazipay has been one of the best decisions we have made. It is so much easier for me now that I do not have to chase customers for payment, it's all done for us - like clockwork. The staff are so helpful, courteous, friendly and super efficient. A very professional service indeed. For me Eazipay are worth their weight in gold!

★★★★★

Mark Ward
Midland Tech
Midland Tech have been using Eazipay for nearly four years and the service has been excellent. It's easy to use, payments are received promptly, and customer service is very good. Emails are answered quickly, nothing is too much trouble, and everyone you deal with is very knowledgeable and friendly I would recommend Eazipay to anyone.

★★★★★

Oliver Thompson
CCCit
We have been using Eazipay to take direct debit payments from our clients since 2008. As a long standing customer our business could just not run without the assurance that we are going to get paid on time. Eazipay has allowed us to grow our business without the hassles involved in collected numerous monthly payments. We really appreciate all the hard work and expertise that the team at Eazipay bring to our business. Thank you from everyone at CCCit

★★★★★

Andrew Straton
Yorkshire Dales Sailing Club
Eazipay have been collecting Direct Debits on behalf of the Yorkshire Dales Sailing Club since 2009 and we have never looked back! It has made our administration, run entirely by volunteers, so much easier and saved us large amounts of cash by not having to post reminders to members every year. Thank you EAZIPAY, you do a great job and I would (and have) recommend you highly to anyone thinking of using a Direct Debit system in the future.

★★★★★

Emma Statham
We have been using the services that Eazipay Ltd offer for some years now and cannot recommend them highly enough. in a nutshell, they offer an incredibly professional, personal , and faultless service allowing us to collect direct debit payments from some of our customers, hassle free. Natalie Terris is our account manager, and she is helpful, friendly and knowledgable. All our queries are dealt with simply and swiftly. All the Eazipay processes we use are simple to use. We wouldn't go anywhere else- Thanks Eazipay! x

★★★★★

121 IT Services Ltd
We started working with Eazipay in September 2013 and since that time they have made both our clients and 121 IT's life so much simpler. The staff are great, friendly and very good at what they do. Would totally recommend them, thank you.

★★★★★

Mark Wyatt
Telecom Network Services
Telecom Network Services has been a customer of Eazipay for 14 years, since I started the business. The staff at Eazipay are outstanding, always efficient and process payments accurately and on time everytime! I recommend Eazipay Ltd, they are a great company to do business with.

★★★★★

Steven Bourne
We have been a client of Eazipay for over two years now and the service is excellent. There is always someone available on the end of the telephone to deal with any queries and it is a very professional set up. The way in which the system operates is very straightforward and we save hours of time and hassle compared with using the old method of standing orders. I would thoroughly recommend Eazipay to any business which wants to make collecting money easy!

★★★★★

Emma Martineau
Phones 4 Business started collecting payments by Direct Debit in 2007. We chose Eazipay and have never looked back. I daren't calculate how much time I have saved in using Eazipay and staying with them is a no brainer! Why change when I have such a good supplier? It is service that counts; Natalie Terriss and the whole team are always very friendly, efficient and reliable. I have no hesitation in recommending them.

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