A continuous payment authority (CPA) is a type of regular automatic payment where an individual gives a vendor permission to take money from a credit or debit account whenever the vendor feels money is owed.[1] They are often used by payday lenders, gym memberships, and subscription sites such as those for magazines.[1][2]

Continuous payment authorities should not be confused with direct debit arrangements or standing orders. Often there is no written record of them, and the payer (whose credit or debit card the CPA is linked to) can cancel them by contacting the vendor or their bank.[3] Concerns have been raised about abuse of CPAs by companies to withdraw money from the accounts of unsuspecting customers, who often do not realise the terms and conditions associated with use of the service.[4][3]

See also

References

  1. 1 2 "Continuous payment authority: manage recurring payments". Moneysavingexpert.com. Retrieved 2015-11-23.
  2. ↑ "Continuous payment authorities: it is your right to cancel". FCA. 2013-06-28. Retrieved 2023-03-04.
  3. 1 2 "Spring Budget 2017: Crackdown on 'subscription traps' planned". BBC News. 2017-03-04. Retrieved 2017-03-04.
  4. ↑ "Locked In: Consumer issues with subscription traps". Citizens Advice. 2017-03-04. Archived from the original on 2018-07-25. Retrieved 2017-03-04.


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