Learn your rights when agreeing to a recurring card payment (also known as a continuous payment authority), and what to do if you are charged after you cancel.
Recurring card payments let businesses charge your payment card on a recurring basis without getting your permission each time. They are sometimes called ‘continuous payment authorities’. They are often used to pay for things like subscriptions, memberships and short-term loan repayments.
How recurring card payments work
When you sign up for a recurring card payment, you authorise a business to charge your payment card on a recurring basis. The business will ask for your debit or credit card information instead of your bank account details.
Never share your bank account or payment card details unless you're certain who you're dealing with. If you've already given fraudsters this information, tell your bank immediately using the contact details on your card or statements. Find out more about how to protect yourself from scams.
Recurring card payments are different to direct debits and standing orders. With a direct debit, you provide a business with your bank account details and give the business permission to take money from your account, usually on an agreed schedule.
A recurring card payment (continuous payment authority) means a business can take payments from your card according to what you agreed when you signed up. This may be for fixed payments on fixed days. It can also be at any time and for varying amounts, but only if you agreed to it.
If you get a new payment card, your recurring payments may continue. But this is not always the case. You can contact your card issuer to check.
Recurring card payments are not covered by the Direct Debit Guarantee.
How to cancel a recurring card payment
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You can cancel a recurring card payment by contacting the business taking the payment and asking them to stop.
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Alternatively, you can ask your card issuer to cancel the payment.
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Once you've asked them to, your card issuer must stop the payments – even if you haven’t contacted the business.
You must ask your card issuer or the business to cancel the payment by the end of the business day before your next payment is due to be taken. Otherwise, you can still be charged.
Your card issuer can’t insist that you contact the business before stopping the payment. But, where possible, you should let the business know before cancelling.
After you cancel a recurring card payment
Cancelling a recurring card payment does not necessarily end your contract with a business. It will still be your responsibility to pay any money that you owe under a contract.
Any further payments taken by the business after you cancel a recurring card payment are considered to be unauthorised transactions. Your card issuer must refund these payments and any related charges immediately.
If payments continue after you have cancelled, contact your card issuer. If you are not refunded, you should complain. Find out more about how to complain.
