Do you know what the different is between standing order or direct debit? They are both very similar with the same function of collecting recurring payments. However, there is one key difference between the two that may make your decision on whether to use a standing order or direct debit for your business and that is who is in charge of the recurring payments.
A standing order gives your customer aka the payer more control over the payments, while direct debits put the business aka the payee, in charge. If you’re a customer, then you may want to opt for a bank or standing order, but I know that I am talking to business owners and managers here who understandably want more control over their payments. This is why I know you will choose direct debits.
A bit more about standing orders
A standing order is completed via bank account. The payer transfers a certain amount of money to another bank account at regular intervals. The convenience surrounding a standing order is that the bank account organisation doesn’t have to be the same one as the payee’s bank account company. However, it takes around 3 working days for the money to arrive in the recipient’s bank account and the sum of money charged cannot be changed unless you cancel the existing standing order and set up a new one.
A bit more about direct debit
Direct debit means that the payer has more control. The payer instructs a third party software to debit a specific amount from the payee’s account. Permission from the customer to do so is required beforehand, however once this authorisation is given, they will be debited at a specific date and amount at regular intervals.
This then begs the question…
Standing order or direct debit?
How you collect recurring payments from your customers will depend on what you are looking for. If you are still stuck in deciding between a standing order or direct debit, here is a list of differences that may facilities in determining your decision.
|Payer has a bit more control||Payee has a bit more control|
|No discount offered to customers||Many customers offer discounts to customers whose payment method is direct debit|
|Payment time is usually around 3 working days||Payment is instant. As soon as the money is debited from the payee’s account, you will instantly get your payment. There is no waiting period.|
Hopefully, you have decided between standing order or direct debit, and hopefully your answer is direct debit. Ezypay is one of the very best direct debit billing solutions in the industry that does wonders for your business and company. Our aim is to deliver real value to our customers and increase overall business revenue. We truly believe that Ezypay will greatly benefit your business, so now the question is no longer standing order or direct debit, it is: will you do the smart thing and use Ezypay as your direct debit billing system?
For more information about Ezypay direct debit, then please contact us for more information and one of our friendly team members will be happy to help you out.
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