An instruction to a bank to make regular payment to a third party on behalf of a customer is

An instruction to a bank to make regular payment to a third party on behalf of a customer is 

Answer Details

An instruction to a bank to make regular payments to a third party on behalf of a customer is called a standing order. This is a type of payment arrangement where the customer provides their bank with instructions to transfer a fixed amount of money at regular intervals, such as weekly or monthly, to another person or organization. Standing orders are often used for recurring payments, such as rent, mortgage payments, or utility bills. They provide a convenient way to automate regular payments without the need for manual intervention each time. The customer sets up the standing order with their bank, specifying the amount to be paid, the frequency of the payments, and the recipient's details. The bank then carries out the payment automatically on the specified dates. It's important to note that a standing order is different from a direct debit, which allows a third party to automatically collect varying amounts from the customer's account on specific dates. With a standing order, the customer retains control over the amount and timing of the payments.