Pay in dollar or pound

depends on your bank account. Many accounts load their exchange rate and/or charge a fixed fee for foreign transactions which will push it up over the cost of the £s..

having said that I don't think it's possible to set up a direct debit in a foreign currency- are you sure it's a direct debit?
possibly it's a direct debit in GBP where the company requesting it sets the amount based on the current exchange rate + whatever load they like
 
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does the $10 include tax? US typically doesn't include tax until checkout due to different rates in different states.
 
Stop being a cheapskate and just pay in £ so there's no unknown fees etc. At the end of the day it's £1 a month difference...
 
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