Regular payments explained

Direct Debits are when a company collects money from your current account on a regular basis. To do this, you have to give them your account number and sort code.

Direct Debits don't have to be for a fixed amount, but the company has to tell you in advance if the amount changes.

Direct Debits are covered by the Direct Debit guarantee (opens in a new window).

Standing orders are automatic regular payments to another bank account, either owned by you or someone else. They’re set up by you using your current account details, and the amount is fixed. You can change or cancel them at any time.

Common examples of standing orders include rent and moving money into a savings account each month.

Recurring card payments are where you give a company your debit or credit card details so they can take regular payments from you. They’re sometimes called continuous payment authorities or future card payments. They’re set up by a company using your account details.

They often start with a free trial, then when it ends the company uses your card details to take further payments. The company should tell you this when you sign up for the free trial.

Common examples of recurring card payments include insurance policies, breakdown cover, Netflix, Amazon Prime or magazine subscriptions.