Guide to GIRO

With the advancement of technology, we are blessed to have a wide array of payment modes to choose from — and one of the most common payment modes in Singapore is GIRO.

Learn more about GIRO and decide if this payment type is ideal for you.

What is GIRO?

GIRO, short for General Interbank Recurring Order, is an electronic direct debit mechanism implemented in 1984 by the Association of Banks in Singapore (ABS). It is a low-cost payment collection option that allows you to make payments directly from your bank account to government agencies and private sector billing organisation (BO) for any outstanding bills.

How does GIRO works?

GIRO creates a contractual relationship between you and BO, with your bank acting as an intermediary to effect the GIRO deduction. It is widely used for regular payments with a fixed quantum.

Here are some examples of bills you can pay via GIRO:

Types of GIRO payments

GIRO payments generally comes in these two forms:

• GIRO direct debit. The billing organisation is authorised to debit your nominated bank account directly for recurring bills. This is the most common type of GIRO payment.
• GIRO-on-demand. Some banks provide offer a GIRO-on-demand option, which allows you to initiate the payment process, input the amount you need to pay and authorise each GIRO payment online.

Benefits of using GIRO

• Only require a bank account. All you need to set up a GIRO arrangement is a bank account. There’s no requirement for any credit/debit cards, internet banking login or mobile app.
• Free to use. There’s no cost involved for payees.
• Easy to set up. Creating a GIRO arrangement is simple and your bank does not require any further authorisation once you’ve set up a GIRO arrangement.

Things to look out for

• Not all merchants offer GIRO as a payment option. To set up a GIRO arrangement, the billing organisation must have a partnership with the bank.
• Changing banks will require setting up new GIRO arrangements. If you’re switching banks, you’ll need to inform the billing organisation in advance and apply for a new GIRO arrangement with your new bank account. It’ll then take around 2 weeks for the new arrangement to be processed and activated.

How to set up a GIRO arrangement?

Setting up a GIRO arrangement is convenient. While the steps may vary from bank to bank, they usually follow the following process:

1. Log in to your bank’s online banking platform
2. Navigate to GIRO services (usually under Payment features)
3. Click on ‘Add GIRO arrangement’ to set up a payment
4. Select the billing organisation and debiting account you wish to use
5. Fill in your GIRO payment details
6. Accept the terms and conditions
7. Submit and you’re done!

Frequently asked questions

• What if there are insufficient funds in my bank account?

  If there are insufficient funds in your account when the GIRO payment is due, you may incur a service fee from the billing organisation or the bank to cover for the deduction attempt.

• How can I terminate a GIRO arrangement?

  If you wish to terminate a GIRO arrangement, you’ll need to notify your billing organisation so they can stop sending direct debit instructions to the bank. At the same time, you should also inform the bank of your intention to terminate the arrangement so it would not process further direct debit requests from the billing organisation.

• What can I do if my GIRO deduction is incorrect?

  Should there be a mistake in your GIRO payment, make sure to inform your billing organisation and bank as soon as possible. If deductions have already been made, the billing organisation will have to conduct an investigation and rectify any mistakes by refunding the difference.