Let’s say you have to pay your rent on the first day of the month. Usually, you set a reminder 1-2 days before the due date. Then, you simply go to your online banking and send the money. Chances are the payment just slips your mind. We know what comes next – another unpleasant argument with your landlord followed by another promise that it won’t happen again.
The truth is that this wouldn’t have happened in the first place if you had set up a recurring payment.
What are recurring payments?
With recurring payments (also known as standing orders), you can avoid all the hassle of late payments and send automatic transfers to your landlord’s account with an easy, one-off set up. In other words, recurring payments allow you to pay another person or business, a certain amount of money at fixed intervals. All you need to do is to set it and forget it!
Recurring payments: when do you need them?
People usually use recurring payments (standing orders) to pay their rent or mortgage, mobile telephone bills as well as other monthly subscriptions, or to transfer a set amount to their savings account.
Additionally, the recurring payments are a perfect solution if you need to send money to another person’s bank account on a regular basis – for example, the tuition fee for your kid’s semester. The best part is that standing orders give you the control and the convenience that you need – you can review them at any time and adjust the amount and the frequency if needed.
How to set up a recurring payment?
- Log in to your LeoPay account
- Go to Transfers > Recurring payments> Make a new recurring payment
- Choose the amount, start/end date and frequency
- Enter the recipient’s details and confirm
It’s as simple as that! You won’t have to set a reminder ever again or worry about late payments.
How long a recurring payment can last?
When setting up a recurring payment with LeoPay, you can specify the duration of the payments – this can be daily, monthly, weekly or whatever you choose. If you prefer, you can set an end date and the recurring payment will stay active only until that day. Of course, you can cancel it at any time as you have full control over the payments.
People often mistake recurring payments (standing orders) for another type of automatic transfers called Direct Debit. Read on to find out the differences.
Standing order vs. Direct Debit
A Direct Debit is different to a recurring payment (standing order). When a Direct Debit is being set up, the person or the organisation is requesting a payment, meaning they ask for permission from the payer to take a set amount from their account on a regular basis. For example, most people use direct debits to pay their electricity and gas bills.
With the direct debits, the amount taken from your account varies – the organisation collects the amount that you’re owed. In contrast, when you set up a recurring payment (standing order), you give an instruction to your bank/financial institution to pay a set amount on a particular date – the payment amount is fixed and doesn’t change unless you don’t amend it.
Interested in learning more about recurring payments and direct debits? Check out our “How to set up a recurring payment?” video