Continuous Payment Authority

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Continuous Payment Authority is a type of regular automatic payment that you can set up using your debit or credit card. It is a popular method for making regular payments.

As a customer, you may authorise a service provider to regularly charge your debit or credit card for a service it has provided you.

However, customers who give a Continuous Payment Authority do not enjoy the same rights as those who use Direct Debits.

This method of payment is set up by you giving your debit or credit card details to a service provider to which you wish to make a regular payment. This can be done over the phone, in person or online.

A Continuous Payment Authority gives the company you are paying the mandate to:

• Take payments on a date of their choice; and
• Take payments for different amounts.

This type of payment authority does not offer users the same rights as those for Direct Debits. Keep an eye on your bank statement to ensure that all payments match your expectations.

You can cancel a Continuous Payment Authority by informing the service provider you have instructed. The bank may not be able to cancel or reverse a Continuous Payment Authority.

Whatever payment service you select, the service provider or the bank will collect payment from the account which you identify. If the account has insufficient funds or is blocked (by a court order, for example), not only will the transaction fail but you are also likely to be charged a fee by your bank.

 

    
   Standing Order  Direct Debit  Continuous Payment Authority

Setting up service directly with the bank

Yes

No

No

Setting up service with a service provider

No

Yes

Yes

Amount collected may be changed by the customer

Yes

Yes

Yes

Amount collected may be changed by the service provider

No

Yes, depending on the agreement

Yes, depending on the agreement

Fee for the service

Yes

No

No

Date when amount is collected may be changed by customer

Yes

Yes

Yes

Date when amount collected may be changed by the service provider

No

Yes, so long as the customer is given advance notice

Yes, so long as the customer is given advance notice

Right to claim a refund

No

Yes

No

Immediate full refund of monies following a claim

No

Yes

No

Period of time from date of payment collection when you can claim a refund

No right to claim a refund

Eight weeks, if authorised under mandate.

Thirteen months if transaction was unauthorised.

Customer may claim a refundfrom bank if payment was carried out without authorisation.

Right to cancel

Yes, but only through the bank

Yes, by requesting bank or service provider

Yes, but only by requesting the service provider




Last updated: Sep 07, 2016