Bank Account Transactions Explained

Are you confused by banking terminology, including many of the terms and abbreviations for transactions which appear on your bank statement? If so, you aren’t the only one. Many people don’t fully understand everything that goes on with their current accounts, but there are few transactions that you may need to know about.

Direct debits

Direct debits are known as one of the easiest ways to make regular payments, such as paying monthly bills for example. Direct debits are set up when you arrange one in your branch or call up your bank, or by filling in a Direct Debit Mandate form.

Once the direct debit has been set up for a particular date, which can be every month, quarter or year, the money will leave your current account and enter the payee’s account as per your instructions. Direct debits tend to show up as D/D on your bank account statement.

Standing orders

Standing orders are similar to direct debits in that they can be used to make regular payments. However, there is one important difference between the two. With a direct debit, the payee can change the amount you pay, although they must inform you. With a standing order, you decide how much you pay and when.

Standing orders show up on your bank statement with the abbreviation SO. If you have online banking, you should be able to view, manage and cancel standing orders with just a few clicks.

One-off payments and transfers

Most people who have an online bank account can make one-off payments and transfer money between their accounts.

Debit card transactions

Quite simply, these are transactions made with your debit card, such as paying the bill in a restaurant, withdrawing cash from an ATM or paying for something in a shop.