- Bank draft: a cheque drawn by the bank on itself or one of its branches.
- Standing order: an instruction to the bank to regularly pay a fixed sum from your account to a specific payee, e.g. rent, insurance, or interest.
- Direct debit (pre-authorized debit): similar to a standing order, but the creditor (seller) instructs the buyer’s bank to pay, with the buyer’s authorization — used when the amount can vary by invoice.
- Credit transfer (bank giro): used to make several payments at once with a single cheque, listing payees, account numbers, banks, and amounts — e.g. paying salaries or rents.
- Online payment: paying directly into the payee’s account over the internet.
Standing Order vs Direct Debit
| Standing Order | Direct Debit |
|---|---|
| Paid at regular time intervals | Paid at no fixed time interval |
| Amount is fixed | Amount can vary |
| Permanent instruction given by the debtor | Instruction given by the creditor |
| Payment always takes effect as set | Instruction must be given before each payment |
