No, a continuous payment authority is different from a direct debit or standing order. Firstly, a CPA contract is made directly with the merchant. You’ll need to give them the long number on the front of your card, which effectively gives them permission to take money directly from your bank account. The recurring payment may be for the same amount each time, or it could vary. This differs from direct debits and standing orders, which are set up with your bank. By instructing your bank to set up a direct debit or standing order, you’re agreeing to pay a fixed amount to a company on a set date. An organisation must inform you in writing before they can increase your direct debit payments.
Secondly, if you want to cancel a CPA, you’ll need to contact your bank and/or merchant (more on this below). By contrast, you can easily cancel a direct debit or standing order yourself by simply logging into your online bank account or mobile banking app.
Another point to remember is that unlike direct debit payments, CPAs aren’t automatically transferred over if you switch bank accounts. If you want a company to continue taking CPA payments, you’ll need to contact them yourself.
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