Direct Debits, Standing Orders and Recurring Payments

[Brendan Burgess]

We have switched hosting providers so I wanted to stop the monthly "direct debit" I had with the former company. I realised then that it was not a direct debit but a recurring payment (Continuous Payment Authority) on my debit card.

I can stop direct debits and standing orders myself online.

I have cancelled the service and assume that they will stop the recurring payment. But I don't seem to be able to stop it myself. (As it happens, it's from a card I don't use very often, so I have frozen the card while I am sorting it out.)

This suggests that it's much better to set up a Direct Debit than a Recurring Payment.

 

[Dr Strangelove]

This suggests that it's much better to set up a Direct Debit than a Recurring Payment.

Swings and roundabouts.

With a card transaction if you get poor service you can challenge and often get a chargeback from the merchant via card provider.

With a direct debit you are relying on the service provider to refund you via EFT.

 

[Towger]

You cannot stop recurring payments from a debit or credit card. I am sure there are multiple threads on this, over the years.
A credit card will give you some protection, but you are relying on the good will of your bank for a debit card.

 

[GrossOrNet]

You can chargeback a Direct Debit too. I wouldn't cancel a Direct Debit or freeze your card yet because your provider may issue you with the last period bill and attempt to charge you. If the payment wouldn't go through, you would need to arrange a manual payment. I don't understand why people are so anxious to often cancel DD when they leave a provider. If there's nothing outstanding, then a DD would not be presented. Best to cancel a DD after a few months, when you're sure that all outstanding balance is fully paid. Most providers doesn't allow to cancel a DD without letting them know and that's covered in their T&C.

 

[arbitron]

If there's nothing outstanding, then a DD would not be presented.

I once got a surprise direct debit in error about 3 months after I had paid my final bill and switched to a new company. The amount was almost €400 and it took a lot of time and hassle to have it reversed.

 

[ClubMan]

I always cancel/delete DDs/SOs once a final bill has been paid and they are no longer needed. I hate having confusing redundant payments listed on my account.