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
My guess is Direct Debits are only recorded after the 1st / 2nd payment has been taken when Monzo can work out the amount & frequency.
No I donât 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.
No, Spotify is just a card payment, not direct debit.
it would be classed as a ârecurring paymentâ or âontinuous payment authorityâ so would be good to see it moved into that section within the app.
edit: http://www.moneysavingexpert.com/banking/recurring-payments
Iâve 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.
According to that MSE artical you can cancel them from the bank at anytime
Until 2009, only the company could cancel them, you couldnât. 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 doesnât play ball.
Thanks, thatâs interesting, I wasnât aware. Iâve yet to see a âcancel continuous payment authorityâ button in any of my credit card accounts though, so the paypal route may be easier.
it looks like a call your bank/ CC provider thing. It would be nice to see :mondo: put the transactions into the ârecurring paymentsâ section in the app with the option to cancel as if it was a DD or SO.
Thanks :). It will be interesting. I would imagine that when the spending tab is updated it will come into âcommittedâ. I would like to see this taken out of my available to spend pot
So Iâve 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 itâs supposed to?
Iâve 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.
Good question, Iâve posted my best guess towards the top of the thread.
Iâve moved your post here to keep all of the information about how this functionality works in one place, I hope thatâs ok
Thanks, Alex! (Great name by the way)
For now I guess Iâll just keep a record of when Iâm expecting payments to go out, and check that they do⌠or wait for Cineworld and my gym to send me angry emails when they donât get paid!
How do you change direct debits? Is this done manually by contacting all the payees, or automated somehow?
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 doesnât 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 donât think the bank receives any information as to date, frequency, or amount.
This is just what Iâve noticed over the years, I donât have experience with what goes on behind the scenes. Would be great to hear from someone in the know.
Letâs go for a deep dive into the world of recurring payments!
So there are three types of recurring payments weâre offering on the Current Accounts - this would be the same as any major bank
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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 weâve received a DDI (usually 3 working days after you provided your details to the originator) weâll show this in the Recurring Payments section of the Spending Tab - the first payment doesnât need to go through - although we donât get any information about the amount until the first payment arrives -
Standing Order
A Standing Order would be setup by yourself on the app, youâll 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 youâre paying has no control over this - unlike a Direct Debit. Like a Direct Debit, weâll also show this in the Recurring Payments section in the app. Once itâs time for the Standing Order to be sent - this will generate a Faster Payment and send over the network. -
Recurring Card Payment
To setup a recurring Card Payment, youâll 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 âSaved Cardâ functionality (so the CVC doesnât need to be entered each time). We donât show these in the Recurring Payments section of the app sadly.
If anyone has any questions, Iâd be happy to answer, or alternatively, Iâll find someone who can
Thatâs exactly what I wanted to know, thank you! I had a feeling it worked something like this, but wasnât sure how it would materialise on the app. That clears it up!
Thatâs 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) theyâll probably forget to enter it into their system
Edit: lol, half an hour later itâs there
You need to do it manually for now, although thereâs 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 itâs a bit unnerving when you just read out a few numbers on the phone and then thatâs it!)
Will there be any intention of doing soâŚ? I think itâd be nice to have them there as well.