What is the difference between the permanent order and the direct debit?

Two automatic payment options available to bank account holders around the world are a constant command and direct debit. Among them are two main differences: the source of the transaction and the amount to be paid. A permanent order is a directive from the account holder to the bank that pays a specific amount of a third party according to the specified plan. A direct debit is a third -party payment order and approved at the beginning of the account holder; After approval, the third party may submit direct debit in any amount, often at indefinite intervals. Permanent order and direct debit arrangements can be canceled by simple instructions from the account holder to the bank. They are therefore best suitable for payments where the amounts are never different, such as rent or mortgages, insurance or regular contributions to savings programs. Generally, the Ding order stands for two to three days and can usually be canceled at any time with the exception of the day before and day. There are no constant orders in the United States so run sonot as in other countries.

Direct debit comes a third party, such as a public service company, credit card company or online services provider. Approval is obtained from consumer, often on paper form, but more often online. One -time shopping, online and in a traditional retail environment are also often paid by direct debit. If the direct debit is to remain in force over the original sale, the customer usually approves the organization called "direct debit mandate" for collecting other amounts due.

The difference between a steady command and a direct debit is important for the third party - the side is paid - because the performance of a steady order takes longer. If the third party represents a direct debit for payment, the funds are transferred immediately. Conversely, if the account holder issues a steady command on a particular date, the funds may not arrive at the receipte to three days after the date of transfer efficiency. Direct debit is preferred by companies because they can collect a wide range of quantities whenever they become payable, although many voluntarily represent direct debit only once a month. In addition, in terms of third parties, if small additional amounts such as services are due, the consumer's debit bank account is much more convenient rather than sending a paper invoice.

In terms of consumer, there is also a critical difference between the permanent order and the direct debit. For all transactions where the amount payable is constant or it must rarely be modified, the permanent organ is more advantageous because it protects against an unplanned or inaccurate accusation of a third party. These fees, whether they are justified in the eyes of a third party, usually disrupt the budget of the account holder. In view of the potential exposure of a human error or fraud, a steady command is an apparently more advantageous arrangement from the consumer's point of view.

While consumerThe ebitel can cancel both the standing order and the direct debit, the functional difference is a control. The consumer retains absolute control over a constant command and only a veto through a direct debit; This means that the consumer does not have to instruct her bank to pay some, but not all direct third -party debts. The third party has a significant control over the process of direct debit and many of them penalize those customers who take the authorization.