We all know bills can be hard to keep track of \u2013 especially with the rise of subscription-based services like Netflix, Amazon Prime and Spotify. It\u2019s all too easy to sign up with companies like these and lose track.<\/p>\n
Continuous payment authority (CPA) has become an increasingly common way for companies to process customer payments, essentially granting companies to take payment from your credit or debit card on a recurring basis.<\/p>\n
In this guide we will break down everything you need to know about CPAs \u2013 how they work, how to manage them, and what to watch out for.<\/p>\n
What is a continuous payment authority?<\/h2>\n
A continuous payment authority (CPA)<\/strong> is a type of recurring payment that gives a merchant permission to take money from your debit or credit card whenever they believe it\u2019s owed.<\/p>\n Unlike direct debits<\/a> or standing orders, which are set up through your bank, CPAs are agreements made directly with the merchant<\/strong>. This means the company has your card details and can charge the agreed amount as required.<\/p>\n The merchant is required to get the customer\u2019s permission \u2013 known as \u2018standing authority\u2019 \u2013 in order to take payments whenever they become due. This means the company holds<\/a> your card account <\/strong>information and can charge the agreed amount as required.<\/p>\n CPA payments are often used for subscriptions, such as gym memberships or streaming services, and don\u2019t always follow a fixed schedule \u2013 meaning payments might be taken at different times.<\/p>\n Continuous payment authorities can also be referred to as recurring card payments, recurring transactions, regular card payments or continuous payments.<\/p>\n A clear initial way to identify a CPA is that the company will request your credit or debit card number (the 16-digit number on your card) instead of your bank account number and sort code.<\/p>\n Continuous payment authorities can be tricky to keep track of, since they\u2019re not explicitly listed as CPA transactions on your bank statements. To identify CPAs, review your statements for recurring debit transactions. If they aren\u2019t marked as direct debits (DD) or standing orders (SO), they are likely CPAs.<\/p>\n On a credit card statement, any regular payment will be a CPA, as this is the only type of recurring payment processed via credit cards.<\/p>\n CPAs are used by businesses across a wide array of services. Some examples include:<\/p>\n Continuous payment authorities (CPAs)<\/strong>, direct debits <\/strong>and standing orders<\/strong> are all ways to make recurring payments, but they work differently:<\/p>\n Essentially, direct debits offer more control and security<\/strong>, standing orders provide consistency for fixed payments<\/strong>, while CPAs provide flexibility but require careful monitoring.<\/strong><\/p>\n Continuous payment authorities can be set up online, in person, or over the phone. Instead of providing bank details, which are typically required for direct debits<\/strong>, the customer authorises the merchant<\/a> by sharing their debit or credit card details<\/strong>, using the 16-digit number found on the card.<\/p>\n The payment date and amount may vary each month, depending on the terms you\u2019ve agreed upon with the company.<\/p>\n While reputable companies should clearly outline your commitment and adhere to an agreed payment schedule, you should always check the terms and conditions and make sure you understand the payment terms.<\/p>\n Yes \u2013 as the consumer you have the legal right to cancel a continuous payment authority at any time. Even if the company refuses, your bank is required to stop them on your behalf.<\/p>\n The best approach is to start by reaching out to the company and requesting that they stop taking further payments. You can usually do this online by email, or over the phone. Most legitimate businesses will comply with this.<\/p>\n However, if you\u2019re locked into a contract \u2013 such as an annual gym membership<\/a> \u2013 consider the consequences before pursuing cancellation. You may need to find another way to settle the payment to avoid breaching the agreement.<\/p>\n Remember that you remain responsible for any debts owed to the company even after you cancel a continuous payment authority.<\/p>\n If you aren\u2019t contractually obligated, you can formally dispute the transaction by phone or in writing. Ideally, the company may decide to close the account rather than contesting the dispute.<\/p>\n If the company refuses to cooperate, you can contact your bank or credit card provider to stop the payments. According to the Financial Conduct Authority (FCA)<\/strong><\/a>, banks are required to cancel a CPA upon request.<\/p>\n While you could skip step 1 and go straight to your bank or credit card provider, it\u2019s generally advisable to contact the company first, as outstanding balances may still need to be addressed.<\/p>\n FCA regulations<\/a> also state that banks must refund payments if they failed to cancel a CPA when asked. If charges continue despite your request, you should notify your bank \u2013 they are legally required to reimburse the full amount.<\/p>\n For example, if your \u00a330\/month gym membership subscription continued for three months after cancellation, your bank must refund \u00a390, plus any interest incurred \u2013 such as credit card interest on unpaid balances.<\/p>\n While a continuous payment authority (CPA) itself doesn\u2019t directly impact your credit score, how you manage it can have repercussions \u2013 here\u2019s how:<\/p>\n If a CPA is linked to a credit card and payments aren\u2019t made on time, it could lead to late fees and negatively affect your credit score.<\/p>\n If a CPA causes your bank account to go into overdraft, it might signal financial strain, which could impact your credit score.<\/p>\n If you rely on CPAs for recurring payments but struggle to keep up, it could increase your overall debt, affecting your ability to borrow in the future.<\/p>\n Unlike direct debits and standing orders, continuous payment authorities won\u2019t automatically transfer to your new account when you switch bank accounts.<\/p>\n You are responsible for reaching out to the company and updating your payment details to ensure payments continue and avoid missing any.<\/p>\n If your card expires, your continuous payment authority (CPA) won\u2019t automatically transfer to a new card. The payments may be declined unless you update your details with the company or your bank. Some banks may attempt to carry over CPAs to a replacement card, but it\u2019s always best to check and ensure your payment method is up to date.<\/p>\n CPAs can be set up on both debit and credit cards. Any recurring payment charged to a credit card is automatically a CPA, as credit cards don\u2019t support other types of recurring transactions.<\/p>\nHow to identify a CPA on your bank statement<\/h2>\n
What are continuous payment authorities most commonly used for?<\/h2>\n
\n
![\"Close-up](\"https:\/\/blog.howdeninsurance.co.uk\/wp-content\/uploads\/2025\/05\/pen-resting-on-an-important-document-1024x683.jpeg.webp\")
\n<\/picture>\n<\/a><\/figure>\nWhat is the difference between a continuous payment authority, a direct debit and a standing order?<\/h2>\n
Continuous Payment Authority (CPA)<\/strong><\/h3>\n
\n
Direct Debit<\/strong><\/h3>\n
\n
Standing order<\/h3>\n
\n
How do you set up a continuous payment authority?<\/h2>\n
Can I stop a continuous payment authority?<\/h2>\n
How to cancel a CPA: step by step<\/h2>\n
1. Contact the company taking recurring payments<\/h3>\n
2. Ask your bank or credit card provider if it becomes necessary<\/strong><\/h3>\n
3. If your bank fails to act<\/h3>\n
Does a CPA affect credit score?<\/h2>\n
Missed or late payments<\/strong><\/h3>\n
Overdraft usage<\/strong><\/h3>\n
Debt accumulation<\/strong><\/h3>\n
![\"Close-up](\"https:\/\/blog.howdeninsurance.co.uk\/wp-content\/uploads\/2025\/05\/Close-up-of-a-lot-of-bank-cards-1024x683.jpeg.webp\")
\n<\/picture>\n<\/figure>\nWhat happens to my continuous payment authority if I change bank account?<\/h2>\n
What happens to my continuous payment authority if my card expires?<\/h3>\n
Can continuous payment authorities be taken out on both debit cards and credit cards?<\/h3>\n
Continuous payment authorities: key takeaways<\/h2>\n
\n
How Howden can help<\/h2>\n