Standing Order (Banking) Law and Legal Definition

A standing order is a standing instruction that a customer gives to his/her bank to pay a specified amount at regular intervals to another account. Usually, the amount is paid on a particular day of every month. The amount can be paid into any bank account, and need not belong to an organization vetted by the payer's bank. Standing orders are used typically for recurring, fixed-amount expenses such as insurance premiums, mortgage installments, and subscriptions. A standing order is not usually suitable for paying variable bills such as credit card, or gas and electricity bills. A standing order can be canceled at an account holder's option.