standing order definition

standing order

Banking: Type of preauthorized-payment under which an accountholder instructs a bank to pay a specified amount, directly from his or her account balance, to a named party on a regular basis. Standing orders are used typically for recurring, fixed-amount expenses such as insurance premiums, mortgage installments, and subscriptions, and are cancelable at the accountholder's option. See also direct debit payment.

Purchasing: Purchase order covering repeated deliveries of goods or services in specified quantities, at specified prices, and according to a specified schedule.

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