Finance glossary
Recurring Payment
Also known as: Continuous Payment Authority, CPA
In simple terms
A recurring payment lets a company take money from your card at regular intervals — like a gym, streaming service or subscription. You can cancel it directly with your bank as well as with the company.
On this page
What does recurring payment mean?
A recurring payment, also called a Continuous Payment Authority (CPA), is where you give a company permission to take money from your debit or credit card whenever it is due — for a subscription, membership or regular service.
It is different from a direct debit. With a CPA the company holds your card details and pulls the money using them, so the amount and timing can vary. That flexibility is convenient but gives you a little less visibility than a direct debit.
How a recurring payment works
You typically set one up by entering your card details and agreeing to ongoing payments. The company then charges the card at the agreed intervals until you cancel. Because it uses your card number, it can continue even after a card is reissued in some cases.
You can cancel a CPA in two ways: by telling the company, or by telling your bank or card provider to stop it. Your bank must stop the payments when you ask, even if you have not managed to cancel with the company itself.
How could this affect me?
Recurring payments make subscriptions effortless, but that is also the risk — free trials that convert to paid, or services you forgot you signed up for, keep taking money until you stop them.
If a company keeps charging you after you cancel, you can go straight to your bank to block further payments. Reviewing your statements regularly helps you catch CPAs you no longer want.
Things to watch out for
- A “free trial” often sets up a CPA that starts charging automatically once it ends.
- A CPA is not the same as a direct debit — the amount and timing can vary.
- A recurring card payment can sometimes continue after your card is replaced.
- Cancelling with the company and with your bank are both effective — you can use either.
Know your rights
- You have the right to cancel a Continuous Payment Authority directly with your bank or card provider, which must then stop the payments (FCA rules / Payment Services Regulations 2017).
- Your bank must act on your cancellation instruction even if you have not managed to cancel with the company.
- Payments taken after you cancelled, or that you did not authorise, must be refunded; if your bank refuses you can complain to the Financial Ombudsman Service.
General information, not personal advice
Consumer Credit is an independent information service. We do not provide regulated financial advice or sell financial products. For advice on your own situation, speak to an appropriately authorised firm or a free service such as MoneyHelper. About Consumer Credit.
Sources
We checked this page against these official and authoritative sources.
- legislation.gov.uk, The Payment Services Regulations 2017 (opens in a new tab). Accessed 22 Aug 2026.
- FCA, Cancelling a continuous payment authority (opens in a new tab). Accessed 22 Aug 2026.