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Unlike direct debits, card payments don’t appear in one neat, centralized list on your bank statement. Instead, they are scattered among daily transactions and are more likely to be forgotten subscriptionfree trials, and recurring charges are all overlooked.
from streaming services and fitness apps to cloud storage and delivery passes, Millions of people now pay to subscribe Use their debit or credit card.
These are called continuous pay While they’re convenient, they’re also surprisingly difficult to track.
Revolut’s research shows the problem is widespread. An independent survey commissioned by the digital bank found that Britons waste more than £3.5bn every year on paid-for but not used subscriptions, with more than half admitting they are still paying for services they no longer need.
Research shows that the average person loses £66 a year, mainly due to procrastination, forgetfulness and the hassle of cancellations.
As household budgets come under pressure, Many people try to cut unnecessary expensesit’s never been more important to understand how these payments work and how to stop them.
What is ongoing payment authority?
CPA allows companies to charge recurring payments to your card with your permission. Unlike direct debit, which is linked to your bank account and appears in a dedicated list on most banking apps, CPA is attached to your card details.
This means they only come in the form of card transactions, often mixed in with supermarket stores, coffee purchases and online orders.
According to the Payment Systems Regulator (PSR), consent is critical to how these payments work.
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“As with any payment, it is important that consumers are able to identify who is being charged money “We expect companies to ensure clear consent and stop payments when consent is withdrawn,” a spokesperson said.
The regulator said businesses can only accept recurring card payments with the customer’s permission and that consent “should be clear, specific and informed”.
This means companies should explain how much they will charge and how often so customers understand what they are signing up for.
Why do some payments look unfamiliar?
One of the biggest frustrations of being a CPA is that the name on your statement doesn’t always match the service you remember signing up for.
The PSR explained that while it does not directly regulate this payment type, it does oversee the credit card program, which sets rules for how merchant names are displayed. In some cases, third parties are involved in payment processing, which may distort the appearance of the payment. Examples include entries such as “PaypalH&M” or “Square*Merchant123ABC,” the PSR said.
They may be truncated or formatted, making them difficult to read. Some merchants choose to show customers payment options upfront, in part to reduce false fraud reports.
Still, unfamiliar names are easily overlooked by many people taking a quick glance at the report.
How to find hidden subscriptions
The first step is to carefully review your card transactions, preferably over a period of several months.
Look for payment options with recurring payments of the same amount and intervals – fees of £7.99, £9.99 or £14.99 per month are usually subscription fees.
many bank Efforts are now underway to make this easier. Starling Bank, for example, offers a “Scheduled Payments” section in its app, which displays recurring card payments associated with a subscription.
A Starling spokesperson said: “Customers can click on any recurring card payment and cancel the recurring payment within seconds.”
Its bill manager provides a summary of direct debit and regular bills, while its spend insights tool allows customers to browse transactions by category. “Customers can inquire about the cost of their monthly subscription and receive an immediate response,” the spokesperson said.
How to cancel consecutive payments
You generally have two options for canceling these payments. The first is to cancel directly with the company through the company’s website or customer service team. This is usually required in the terms of service and can avoid future disputes.
The second is to ask banks to stop payments.
Under UK regulations, a bank must cancel a CPA if you ask for it, even if the company says you still owe money. Any disputes regarding fees should be dealt with individually.
If you continue to make payments after withdrawing your consent, you may be entitled to a refund.
The PSR stresses that payments should stop when permission is revoked and banks and card providers should enforce this.
Do virtual cards help?
Some digital banks now offer virtual cards that can be created and deleted instantly.
In theory, people could use them for a free trial and then delete them to prevent charges.
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Starling offers this functionality, but is cautious about how it’s built. “We offer these for their budget and security benefit,” its spokesperson said, adding that customers “should still cancel their free trial with the provider”.
Relying solely on deleting a card may result in missed bills or disputes, so it is not a substitute for a proper cancellation.
Regular review is crucial
Ongoing payment authorization is legal and widely used, but it is relatively low-profile and easily forgotten.
With subscription spending quietly draining accounts, regular reviews are crucial.
Check your statements, use your bank’s tools, ask unfamiliar names and cancel anything you no longer need.
With living costs tight, these small monthly charges can add up quickly and, unlike direct debits, they don’t mark themselves unless you check.
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