A continuous payment authority, often abbreviated to CPA, is an arrangement that allows a business to take payments from a debit or credit card on a recurring basis. The business may charge the card on dates agreed with the customer, and in some cases may vary the amount or make additional attempts if an earlier payment fails.
CPAs are commonly used for subscriptions, memberships, digital services, insurance premiums, instalment arrangements and other services paid by card. They are sometimes described as recurring card payments, recurring transactions or recurring billing. The terminology can be confusing because a CPA is not the same as a Direct Debit, even though both can involve regular payments.
The cardholder normally gives consent during an online sign-up, over the telephone or through a written agreement. That consent authorises the business to submit future card transactions under the terms presented at the time. The card issuer, such as a bank or card provider, processes the transaction but does not normally control the commercial contract between the customer and the business.
A CPA can be cancelled. The fact that a business has a contract with the customer does not give it an unlimited right to continue charging a card. However, cancelling the payment authority and ending the underlying contract are separate steps. A customer may need to address both.
The payment method determines which cancellation process and protections apply. A Direct Debit is collected through the Direct Debit system and is covered by the Direct Debit Guarantee administered by the sponsoring banks and relevant scheme participants. A recurring card payment is processed through a card network and is not covered by that guarantee.
| Feature | Recurring card payment or CPA | Direct Debit |
|---|---|---|
| Payment route | Debit or credit card transaction | Direct Debit collection from a bank account |
| Cancellation | Ask the business and the card issuer to stop future card payments | Cancel through the bank, usually with advance notice |
| Card replacement | A new card may not always prevent future charges | Not dependent on the card number |
| Dispute framework | Card issuer processes a dispute or refund request under applicable card and payment rules | Different scheme protections apply |
Checking the description on a bank statement is useful, but it is not always enough. A recurring card payment may appear under a trading name, payment processor name or shortened merchant descriptor. If the source is unclear, the card issuer can usually identify whether the transaction is a card payment or another type of payment.
In the United Kingdom, a cardholder can ask the card issuer to cancel a continuous payment authority. The issuer should have a process for recording that request and preventing future payments from the relevant merchant. The Financial Conduct Authority has published guidance explaining that a card issuer must stop a continuous payment authority when the customer asks it to do so, including where the customer has not first contacted the business.
The payment firm should not insist that the customer contacts the business before it accepts the cancellation request. Contacting the business can still be sensible because it may clarify the contractual position, stop service renewal and create useful evidence, but it should not be treated as a necessary precondition to asking the card issuer to stop the card authority.
This does not automatically cancel a subscription or other contract. If the customer is still within a minimum term, has received goods or services, or has an unpaid contractual balance, the business may have a separate claim under the contract. That claim should not normally be collected by continuing to use a cancelled card authority. The business would need to pursue any lawful debt through an appropriate route.
Rules can differ outside the United Kingdom. Customers using a card issued in another country should check the payment services rules and complaint procedures applying to that card issuer.
A replacement card is not a complete cancellation strategy. Some merchants and payment processors can receive updated card details through card account updater arrangements. A new card number may therefore fail to stop a recurring relationship. The specific card issuer can explain how it handles such updates.
First, gather the evidence: the original cancellation request, the issuer's confirmation, the date of the later transaction and any communication from the business. Then contact the card issuer promptly and explain that the transaction was taken after the recurring authority had been cancelled.
Ask the issuer to investigate the payment and consider whether a refund or card dispute is available. The applicable route can depend on the transaction, the date of the cancellation, the evidence of consent and the card scheme procedures. A charge being unfamiliar is not always the same as a charge being unauthorised, so describe the facts accurately rather than using a label that does not fit the circumstances.
Under the Payment Services Regulations 2017, payment service providers have obligations concerning unauthorised payment transactions, subject to the Regulations' conditions and exclusions. The card issuer may ask questions to establish whether the transaction was authorised. A customer should explain that an earlier authority existed but was cancelled, and provide the cancellation evidence.
If the issue is not resolved, use the card issuer's formal complaints procedure. The final response should explain the decision and the available escalation route. Depending on the firm and the nature of the complaint, the Financial Ombudsman Service may be relevant after the firm has had the opportunity to investigate. Eligibility and time limits should be checked directly with the relevant body.
There are two relationships to keep separate:
A customer can withdraw the payment authority while a contractual dispute remains. For example, a subscription may require notice before its next renewal date. Stopping the card payment may prevent collection, but it does not necessarily remove a valid obligation to pay a final invoice or an amount due under the contract.
Conversely, a business should not treat the existence of a contract as permission to ignore a cancellation of the card authority. If it believes money remains due, it should communicate the basis of the claim and use a lawful collection process. Customers should not ignore genuine correspondence about an outstanding balance, particularly where non-payment could affect access to a service or lead to debt collection activity.
Consumer cancellation rights may also depend on the type of service. Digital content, online services, financial products, insurance and regulated credit can each have different rules. The Consumer Contracts Regulations 2013 may be relevant to certain distance or online contracts, but its application depends on the facts and on specific exemptions.
Check the trial terms, the date on which payment was authorised and whether the price and renewal conditions were displayed clearly. If the recurring charge was not properly disclosed, raise that issue with both the business and the card issuer. Do not assume that cancelling the card payment alone resolves any disagreement about the trial contract.
Expiry does not reliably cancel a CPA. A merchant may retry the payment or receive updated card information through a card network service. Ask the card issuer to cancel the authority directly.
Replacement for fraud is different from cancellation of every recurring payment. List the legitimate subscriptions that should continue and separately ask the issuer to block the unwanted authority. Review all later statements because several merchants may have used the old card.
Variable amounts can be legitimate where the agreement permits them, such as usage-based services. Compare each charge with the contractual pricing terms. A material or unexplained change should be challenged with the business and, where appropriate, the issuer.
Where a credit card is used to finance a purchase, cancelling the recurring card payment does not necessarily cancel the credit agreement. Separate rules may apply to credit complaints, and professional guidance may be appropriate before withholding a payment that is contractually due.
Good records make a cancellation easier to prove. Keep:
Review subscriptions at least when a card is replaced, a household budget changes or a service is no longer used. A simple list showing the merchant, billing frequency, expected amount, renewal date and cancellation status can reveal forgotten payments. For business owners and independent professionals, separating personal and business card subscriptions also reduces the risk that a cancelled personal service is mistaken for a legitimate business expense.
Do not share a full card number, security code or online banking password in an ordinary email. Use the contact method provided by the card issuer and verify unexpected requests for payment information through an official channel.
In the United Kingdom, you can ask the card issuer to cancel the continuous payment authority without first contacting the merchant. Contacting the merchant remains useful for ending the service contract and obtaining a refund, but it should not be a condition for the issuer to process the cancellation request.
No. It stops or seeks to stop the payment authority. The subscription contract may contain a notice period, minimum term or final amount due. Send a separate cancellation notice for the service and check the contractual terms.
Not necessarily. Some recurring payment arrangements can continue through updated card details. Ask the issuer to cancel the specific recurring payment rather than relying only on a replacement card.
Keep evidence of the cancellation and contact the card issuer promptly. Explain that the payment was taken after the authority was cancelled and ask about the available dispute or refund process. Also contact the business in writing if a refund or contract clarification is needed.
No. A recurring card payment uses a debit or credit card, while a Direct Debit is collected from a bank account through the Direct Debit system. The cancellation methods and protections are different.
A continuous payment authority is a card-based permission for recurring transactions, not a Direct Debit. In the United Kingdom, the card issuer can be asked to cancel it directly, and a customer should retain evidence of that request. Cancelling the authority does not automatically terminate the underlying contract or remove a genuine debt. If a payment is taken after cancellation, raise the matter promptly with the issuer and provide a precise record of what happened.
Because payment rules and contractual rights can depend on the facts, complex disputes may justify advice from a regulated financial adviser, solicitor, consumer adviser or other suitably qualified professional. Cancelling a payment is an administrative step, not a guarantee that every related contractual or financial issue has been resolved.
