Recurring Payments

Monzo Chat
1

does spotify not count as a direct debit? I have updated my details with the new CA, but nothing is there in my recurring payments :slight_smile:

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2

My guess is Direct Debits are only recorded after the 1st / 2nd payment has been taken when Monzo can work out the amount & frequency.

3

No I don’t believe it does, my Spotify account uses the cards long number at the front so has been setup as a recurring payment, not a direct debit.

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4

No, Spotify is just a card payment, not direct debit.

5

it would be classed as a ‘recurring payment’ or ‘ontinuous payment authority’ so would be good to see it moved into that section within the app.

edit: http://www.moneysavingexpert.com/banking/recurring-payments

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6

I’ve always been a bit wary of continuous payment authorities as you rely on the supplier to stop taking payment when you ask whilst with a DD you can cancel it at the bank.

One way around this that I use is to pay via paypal where possible as it looks like a continuous payment authority to the supplier but you can cancel it like a DD via your paypal account.

I then make the monzo card my primary paypal payment mechanism so I can see the charge in my feed.

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10

According to that MSE artical you can cancel them from the bank at anytime

Until 2009, only the company could cancel them, you couldn’t. Yet you now have a right to tell your bank to cancel. We tell you how to do this, and what you can do if the bank doesn’t play ball.

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11

Thanks, that’s interesting, I wasn’t aware. I’ve yet to see a ‘cancel continuous payment authority’ button in any of my credit card accounts though, so the paypal route may be easier.

13

it looks like a call your bank/ CC provider thing. It would be nice to see :mondo: put the transactions into the ‘recurring payments’ section in the app with the option to cancel as if it was a DD or SO.

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14

Thanks :). It will be interesting. I would imagine that when the spending tab is updated it will come into ‘committed’. I would like to see this taken out of my available to spend pot :slight_smile:

15

So I’ve changed most of my Direct Debits to come from my new current account. At some point should I get some kind of confirmation on the app that the company have set up a new Direct Debit with Monzo? Or do I just need to wait and see whether the payment goes out on the day that it’s supposed to?

I’ve also set up a Recurring Payment from the app (for my rent) and that shows up at the bottom of my Spending tab, which is handy, but just wondering whether Direct Debits will show up in any similar kind of way.

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16

Good question, I’ve posted my best guess towards the top of the thread.

I’ve moved your post here to keep all of the information about how this functionality works in one place, I hope that’s ok :slight_smile:

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17

Thanks, Alex! (Great name by the way)

For now I guess I’ll just keep a record of when I’m expecting payments to go out, and check that they do… or wait for Cineworld and my gym to send me angry emails when they don’t get paid!

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18

How do you change direct debits? Is this done manually by contacting all the payees, or automated somehow?

19

My memory is this is how it works with all banks (so far). The mandate gives the organisation authority to debit your account (and also to vary the amount they debit). It doesn’t show up in online banking, etc, until a payment has been taken as that is the first time the authority is actually used. Until the first debit, I don’t think the bank receives any information as to date, frequency, or amount.

This is just what I’ve noticed over the years, I don’t have experience with what goes on behind the scenes. Would be great to hear from someone in the know.

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20

Let’s go for a deep dive into the world of recurring payments! :swimming_man:

So there are three types of recurring payments we’re offering on the Current Accounts - this would be the same as any major bank :+1:

  1. Direct Debit
    Direct debits are created on the originators (the merchant) end - to set this up, you provide your account details (normally account number and sort code) - and they will send through a Direct Debit Instruction, which then gives the merchant the ability to debit your account - without this instruction, any debits will be declined. Once we’ve received a DDI (usually 3 working days after you provided your details to the originator) we’ll show this in the Recurring Payments section of the Spending Tab - the first payment doesn’t need to go through - although we don’t get any information about the amount until the first payment arrives :slight_smile:

  2. Standing Order :card_file_box:
    A Standing Order would be setup by yourself on the app, you’ll be able to set a frequency of the Payment as well as the amount - the important thing about a Standing Order is that only you can change the amount and date - the person you’re paying has no control over this - unlike a Direct Debit. Like a Direct Debit, we’ll also show this in the Recurring Payments section in the app. Once it’s time for the Standing Order to be sent - this will generate a Faster Payment and send over the network.

  3. Recurring Card Payment :credit_card:
    To setup a recurring Card Payment, you’ll send your Card details to the merchant you wish to pay (for example Netflix) - this then allows them to take the same, or a different amount from your Card at regular intervals - this is also how companies such as Stripe provide their ‘Saved Card’ functionality (so the CVC doesn’t need to be entered each time). We don’t show these in the Recurring Payments section of the app sadly.

If anyone has any questions, I’d be happy to answer, or alternatively, I’ll find someone who can :+1:

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21

That’s exactly what I wanted to know, thank you! I had a feeling it worked something like this, but wasn’t sure how it would materialise on the app. That clears it up!

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22

That’s good info. Although I set up my first DD a week ago and no info so far. Curious as to how long it will take. Knowing the council (Council Tax bill) they’ll probably forget to enter it into their system :roll_eyes:

Edit: lol, half an hour later it’s there :+1:

23

You need to do it manually for now, although there’s talk of bringing in a Current Account Switching Service (CASS) at some point. Some places let you update it online, but others need you to do it over the phone (which is what prompted my previous question, as it’s a bit unnerving when you just read out a few numbers on the phone and then that’s it!)

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24

Will there be any intention of doing so…? I think it’d be nice to have them there as well.

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