Standing order (banking)

The standing order is a form of account transfer. With this account, a leading banking institution is mandated to refer to a specific dates over a period of time consistent amount to a particular recipient.

In the order, the same data should be submitted as an account transfer. Additionally, the dates are still necessary.

A standing order is useful when returning periodically equal amounts should be transferred to a creditor.

The standing order is the opposite of a debit authorization, since the originator is the active part. The difference is that you can not withdraw the money after the transfer. A recall, however, is possible, as with all transfers, as long as the amount was not credited to the beneficiary.

Usually there are standing orders for payments, for example, to building societies oa be used.

In legal terms, the standing order is not an independent contract, but a payment order within the meaning of § 675f, paragraph 3, sentence 2 German Civil Code. This is a contract the Giro Detailed referral to a leading financial institution account. Despite the ongoing payment transactions each standing order is only a single payment order.

A special form of the standing order is the balance transfer.

• Cashless payments