What is a " Recurring Payment "


(Simmy) #1

Is it where a merchant/company take a set amount of money automatically each month etc ?
This is what NowTV do, right ?
Thanks


(Jack) #2

A reoccurring payment is simply a payment that’s set to occur more than once. It could be a direct debit whereby the merchant takes the funds automatically or it could be a standing order / faster payment you’ve set up yourself to send money to a specific account at a set interval :slight_smile:

What nowTV do is setup a direct debit: a direct debit is an arrangement made with a bank that allows a third party to transfer money from a person’s account on agreed dates, typically in order to pay bills. You are right in saying this a reoccurring payment :credit_card:. It’s often one of the easiest ways to pay for a service as it’s less work for you to do.


(Simmy) #3

well explained, thank you :+1:


(Simon) #4

There are also recurring card payments like Netflix, Spotify, Bulb, etc

These are just regular debit card transactions which repeat at certain intervals


#5

They don’t on my account.

It is a Continuous Payment Authority (CPA) and does not appear on my DD list.

It acts the same as Netflix for me.


(MikeF) #6

Presumably because the bank know nothing about it.


(Jack) #7

Good point!

Interesting, I presumed they’d setup a DD since most broadband providers and telephone companies take payment this way.

Saying that I suppose they may use CPA if it’s for tv content similar to Netflix?


(Paul) #8

Please help. I’ll use this example to try explain. I’ve turned on repeating payment for my barbers because I go without fail to get my hair cut each month. It’s not a standing order or direct debit, it’s just a one off payment that I’ll know I’ll spend. Now the barbers is showing in the Payments tab, in the Subscriptions and Direct Debits list and I suddenly wondered whether Monzo will try and pay the barbers automatically if that switch is on, or is the repeating payment just for the purposes of budgeting, adding to committed spending? Thanks in advance


(Will flag Danny for cake) #9

It’s just a way of reminding you for budgeting, not an authorisation to pay


(Paul) #10

Ahh thank you, I thought that was the case then suddenly wondered if I understood it right. Praise be for the community :pray:t3:


(Simmy) #11

Is this in response to my original question or another members post? :grinning:


(Will flag Danny for cake) #12

The post before mine