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I revised my book in order to understand it very well for my next semister of F1-F3.So I found out.
1.) What is the difference between Bank Transfer and BACS?
2.) What is the difference between STANDING ORDER and DIRECT DEBIT?
(I really get confused on these two)Thank you in advance 🙂
I can’t really help with question two, but the main differences between Direct Debits (DD) and standing orders (SO) are:
> With DDs, the payee is given permission by the payer to withdraw money from the payer’s account pretty much as and when the payee wants. A DD is typically used to pay changing amounts of money such as credit card and energy bills.
>A SO is set up by the payer to transfer the same amount of money to the payee on a regular timescale, I.e £800 rent on the 26th of every month. The amount and frequency is totally controlled by the payer, but it is obviously done in accordance with the payee’s wishes. SOs are normally used for long term regular payments, such as mortgages and child maintenance.
Hope this helps 🙂
Thank you for the clarification.
I really get confused between those two back then.
Ans1) Bank Can be Used commonly for any person at any onrganization
But BACS just can be used to transfer Money to the employees account directly mostly used by Payroll dept…..
Ans2) One difference between STANDING ORDER and DIRECT DEBIT is
In Direct debit the time is fixed but amount is not Fixed such as Electricity Bill
And in the STANDING ORDER both the time and amount is fixed such as Internet Bill
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