Regular payments explained

Direct Debits are when a company collects money from your current account on a regular basis. To do this, you have to give them your account number and sort code via a paper or electronic form.

Direct Debits don't have to be for a fixed amount, but the company has to tell you in advance if the amount changes.

Direct Debits are covered by the Direct Debit guarantee (opens in a new window). This offers a refund safety net if an unauthorised payment is taken. It also covers payments taken that are not the amount communicated to you. Or if the payment is taken on the wrong date. If any if these issues occur, you’re entitled to a refund.

Standing orders are automatic regular payments to another bank account, either owned by you or someone else. They’re set up by you using your current account details, and the amount is fixed. You can change or cancel them at any time.

Common examples of standing orders include rent and moving money into a savings account each month.

Recurring card payments are where you give a company your debit or credit card details so they can take regular payments from you. They’re sometimes called continuous payment authorities or future card payments. They’re set up by a company using your account details.

They often start with a free trial, then when it ends the company uses your card details to take further payments. The company should tell you this when you sign up for the free trial.

Common examples of recurring card payments include insurance policies, breakdown cover, Netflix, Amazon Prime or magazine subscriptions.

Third parties may give you the option to set up recurring payments using Open Banking. This allows you to automatically move money between your own accounts. You can use this to repay a loan or overdraft, for example. You can also set up automatic recurring payments from your current account to a retailer’s account. You can set these payments up, and approve them in the app or internet bank.

When setting up the recurring payment, you will be able to set rules. For example, how often the payment should be made, the maximum amount and more. Once you have completed the set up, you won't need to authenticate future payments. And the payment amount can change, providing it remains within the limits you have set.

Recurring payments should only go through within the limits which you set. This includes the maximum amount for each payment. If a payment is taken which does not comply with those limits, you're entitled to a refund under UK payment regulations.

For more information, see our Open Banking page.