What is a standing order and how to set one up in the UK?

It’s an instruction you give your bank to send a fixed amount of money to another account at regular intervals. Once it’s set up, the payment runs automatically until you change or cancel it. It’s an easy way to keep on top of your regular bills.

How does a standing order work?

Standing orders are set up by the payer - that’s you - through your bank or business account (like ANNA!). You choose who to pay, how much to pay, and how often. The payment can go out weekly, monthly, quarterly, or on any schedule you choose. When it’s confirmed, your account will automatically send the money on the dates you’ve chosen.

There’s no need for the other person to ask for the payment or collect it, which makes standing orders different from some other recurring payment methods. As long as you have enough money in your account on the payment date, the transfer happens seamlessly. There’s nothing to think about - just watch the payment go. Ta-dah!

An example of a standing order

Imagine you run a small business and you pay your rent on the first of each month. Instead of having to remember to make a manual transfer every time, you can set up a standing order for the exact amount to your landlord’s bank account. On the agreed date, your bank automatically sends the payment, so you’ll never need to log in or worry about missing a deadline.

What is a standing order payment?

A standing order payment is just the transaction that happens when your bank sends the agreed amount on the scheduled date. It’s a push payment - meaning you initiate and control it.

Advantages and disadvantages of standing orders

Advantages of standing orders

Standing orders make life easier by automating regular payments, helping you stay organised and avoid late fees. Once they’re set up, they run smoothly in the background, so your important payments are made on time without any extra effort.

They also give you control - you decide how much, how often and how long they run for. And because the payment amount is fixed, it’s much easier to budget.

Disadvantages of standing orders

The biggest drawback is their lack of flexibility. If your bill amount changes - say, your energy bill varies each month - you’ll need to manually update your standing order. If there’s not enough money in your account on the payment date, the payment can fail, potentially leading to missed obligations or bank charges.

Unlike Direct Debits, banks don’t automatically retry a failed standing order, so it’s up to you to sort out any issues.

What’s the difference between a standing order, Direct Debit, and continuous payment authority

Standing order vs Direct Debit

With a standing order, you control the payment - you set it up, decide the amount, and make any changes yourself. On the other hand, a Direct Debit is set up by the company or organisation you’re paying. They can change the amount or date (with advance notice), which makes Direct Debits better suited for variable bills like utilities. Standing orders are handier for fixed, predictable payments such as rent or subscriptions.

Standing order vs continuous payment authority

A continuous payment authority (CPA) is typically used by companies like streaming services or gyms, where you provide your card details instead of bank account information. The business can then take payments whenever they’re due. CPAs are more flexible but offer less control than standing orders, as the company can change the timing or amount of payments. Standing orders remain fixed and bank-based, making them more transparent for those who prefer more control over their outgoing money.

How to set up a standing order

Setting up a standing order in the UK is very simple. Most banks allow you to do it through:

• online banking
• mobile app
• over the phone
• in the bank’s branch

You’ll need the recipient’s name, sort code, account number, and the amount you want to send. Then choose how often the payment should go out and when it should start. Once that's confirmed, your standing order will begin automatically on your chosen date. It’s that easy.

Managing, amending, and cancelling a standing order

Standing orders are easy to manage once you know where to look. You can view and adjust them through your banking app or online account - such as ANNA - or you can speak to your bank if you prefer in-person support (that’s normally not necessary).

How to amend or cancel a standing order

If you want to adjust the amount or date, just edit the standing order through your online banking or app. Some banks allow instant updates, while others may need up to one working day to make the changes. If you pay a business or landlord, it’s worth letting them know about any adjustments in advance.

To cancel a standing order, you can use your bank or business account’s app, online portal, phone banking service, or visit a branch. Cancellations take effect immediately or from the next scheduled date.

Timings and processing of standing orders

Standing orders are processed automatically by banks according to a regular schedule. The exact timing can vary slightly between banks, but most payments leave your account early in the morning on the scheduled date.

What time do standing orders go out or in?

Standing orders are usually processed between midnight and 6am on the payment date.

If your account doesn’t have enough money by that time, the payment may fail. The money usually reaches the recipient the same day, thanks to the UK’s Faster Payments system.

Standing orders on weekends and bank holidays

If your standing order date falls on a weekend or bank holiday, most banks will send it on the next working day. Some banks process payments on Saturdays, but it’s best to assume Monday processing just to be safe. You can check your bank’s policy if you need precise timing.

What happens if a standing order fails?

If a standing order fails because there isn’t enough money in your account, your bank won’t usually retry it automatically. You’ll need to make the payment manually. Some banks may charge a failed payment fee, though many now waive these.

It’s a good idea to set reminders or make sure money is in place the day before the payment is due.

Standing orders in bank reconciliation

Whether you’re a person or a business, standing orders appear as regular outgoing payments on your statements. When reconciling your accounts, you can easily match them to invoices, rent schedules, or donation records.

They provide predictable, traceable records that simplify bookkeeping and cash flow management.

Standing orders for different purposes

Standing orders are incredibly versatile. Many people use them for rent, mortgage overpayments, regular charity donations, or topping up a savings account. Businesses often use them to pay suppliers or transfer funds between accounts.

They’re also handy for subscriptions, investments, or family support payments.

If you’re looking for an easy way to manage business payments or automate expenses, a business account with ANNA Money makes it simple to set up and track standing orders - all from your phone, with award-winning Cardiff-based support whenever you need it (yes, that means 24/7).