Glossary · Payment methods
Standing order
A standing order is an instruction a customer gives their own bank to pay a fixed amount to you on a regular schedule.
A standing order is set up and controlled by the payer. It pays the same amount on the same date — monthly, say — until the payer changes or cancels it.
It is simpler than direct debit, because you need no mandate or scheme membership, but less flexible: the amount is fixed, and only the customer can change it. If your fee changes, you depend on the customer updating the order.
Standing orders suit fixed retainers and repayment plans. For variable invoices, direct debit is the better fit.
Match each standing-order payment to the oldest open invoice of the same amount, or agree a reference that names the month. Otherwise one missed payment makes every later one look as if it pays the wrong invoice, and the account never seems to catch up.
Example
A client on a payment plan sets up a standing order for €1,500 on the 1st of each month for six months. The supplier ticks off each instalment as it lands.