What arrangement allows a third party to take money from your account on agreed dates to pay bills?

The arrangement that allows a third party to take money from your account on agreed dates to pay bills is a direct debit. This financial tool is specifically designed for regular, recurring payments, such as utility bills or subscription services, where the amount may vary from month to month.

With direct debit, you authorize the third party to withdraw funds directly from your bank account, which provides convenience and ensures that payments are made on time without having to manually transfer money. The company receiving the payments is responsible for informing you of any changes to the amount or payment dates, giving you transparency and control over your finances.

In contrast, a standing order is more fixed, requiring the account holder to specify the amount and frequency, which does not change unless the account holder makes adjustments. A payment plan generally refers to a method of paying off debt over time and may not involve directly debiting your account. A bank transfer simply moves funds from one account to another without an established ongoing agreement for payments.