Stop Continuous Payment Authority Guide UK (Cancel Recurring Payments)

What Is a Continuous Payment Authority

A continuous payment authority (CPA) is an agreement that allows a company to take payments from your debit or credit card without asking you each time. CPAs are often used for: subscriptions (Netflix, gym memberships, meal kits, software licences), regular services (insurance premiums, broadband, mobile phone contracts), charity donations (monthly direct debits via card), irregular payments (Amazon recurring payments, pay-per-mile car insurance, parking season tickets), and loan repayments (some guarantor loans, payday loans, and doorstep lenders). When you set up a CPA, you give the company your card details and authorise them to charge the card on a recurring basis. The amount may be fixed (e.g. £10/month) or variable (e.g. a utility top-up that varies each month). Unlike a direct debit which is managed through the Bacs system and covered by the Direct Debit Guarantee, a CPA runs through the card payment system (Visa, Mastercard, or Amex). This means: there is no guarantee that incorrect payments will be automatically refunded, you must cancel the CPA through your bank or card provider rather than just the company, and the company can change the amount or frequency without notifying you in advance (unless your contract says otherwise). The FCA has raised concerns about CPAs being used for high-cost credit and gambling where consumers struggle to stop payments. The FCA's Consumer Duty rules require firms to treat customers fairly when using CPAs, but enforcement can be slow.

Your Legal Right to Cancel CPAs

Under regulation 74 of the Payment Services Regulations 2017, you have the unconditional right to cancel a continuous payment authority at any time, even if you have a contract with the company that says otherwise. This right cannot be overridden by the terms of your agreement with the merchant. The key points are: you do not need the merchant's permission to cancel — you can go directly to your bank or card issuer, the cancellation is effective immediately — once cancelled, the company cannot take any further payments, you can cancel by phone, online banking, in branch, or in writing — your bank must act on your instruction, the bank cannot charge you a fee for cancelling a CPA, and if a payment goes through after you cancel, you are entitled to an immediate refund from your bank. This right applies to all CPAs on debit cards, credit cards, and prepaid cards registered in the UK. It applies to CPAs set up with UK and EU-based merchants. For merchants based outside the EU/EEA, the rules may differ, but your UK bank should still be able to block future payments. The bank has no obligation to check whether you have a valid reason for cancelling — you can cancel simply because you changed your mind. However, cancelling a CPA does not cancel the underlying contract — the company may still pursue you for payment through other means (e.g. invoice, debt collection). If you cancel a CPA but owe money under the contract, the company can still demand payment — they just cannot take it from your card automatically. For loan repayments made via CPA, cancelling the CPA does not cancel the loan — you need to arrange alternative payment. See our Cancelling a Loan Agreement guide for loan cancellation rights.

How to Cancel a CPA (Step by Step)

To cancel a continuous payment authority, follow these steps. Step 1: Identify the CPA — check your bank statements or online banking for recurring card payments. Note the merchant name, the amount, the date of each payment, and the last 4 digits of the card used. Step 2: Contact your bank or card issuer — you can cancel by: online banking (most banks now allow you to manage recurring payments in your account settings — look for "manage payments," "recurring payments," or "cancel a continuous payment authority"), phone (call the number on the back of your card — the bank must cancel on your request), secure message via your banking app, or in branch. Tell them: "I want to cancel a continuous payment authority to [merchant name]" — you do not need to give a reason. Step 3: Confirm in writing (optional but recommended) — send a letter or email to your bank confirming the cancellation request. Keep a copy. Step 4: Notify the merchant — although not strictly necessary, it is good practice to inform the merchant in writing that you have cancelled the CPA. Use this template: "Dear [Merchant], I am writing to confirm that I have cancelled the continuous payment authority on my [card type] ending [last 4 digits] for [service]. Please confirm in writing that no further payments will be taken." Step 5: Check your statements — monitor your bank statements for the next 2–3 months to ensure no further payments are taken. If a payment goes through after cancellation, contact your bank immediately for a refund. The bank must refund you under the Payment Services Regulations. If the bank fails to act, escalate to the Financial Ombudsman Service. Some banks (e.g. Monzo, Starling, Barclays) allow you to cancel CPAs directly from their app with one tap.

What to Do If the Company Refuses to Stop

If you cancel a CPA through your bank but the company continues to try taking payments, or if the company tells you they will not stop charging, you have several options. First: confirm the cancellation with your bank — ensure the CPA was actually cancelled. Some banks process cancellations differently (blocking the merchant's merchant ID rather than the specific agreement). Ask the bank to place a block on the merchant's payments. Second: request a refund — if a payment goes through after cancellation, demand an immediate refund from your bank under the Payment Services Regulations. The bank has a legal obligation to refund you. Third: cancel the card — if the merchant continues to find ways to charge (e.g. using a different merchant ID), ask your bank to issue a new card with a different number. This stops all CPAs on the old card. You will need to update any legitimate recurring payments on the new card. Fourth: complain to the merchant — write a formal complaint to the merchant stating that payments were taken after you cancelled the CPA. Demand a refund of any post-cancellation payments. Fifth: refer to the Financial Ombudsman — if the merchant or your bank fails to resolve the issue, escalate to the Financial Ombudsman Service (free of charge). The Ombudsman can order the bank or merchant to refund payments and pay compensation for distress. Sixth: the FCA — if the merchant is a regulated financial services firm (e.g. a lender or insurer), you can also complain to the Financial Conduct Authority. For unregulated merchants (e.g. gyms, subscription boxes), your only route is the small claims court for breach of contract if they continue to take money after you have revoked authorisation. Never let a company pressure you into not cancelling — your statutory right under the Payment Services Regulations is absolute.

Difference Between CPA and Direct Debit

Many people confuse continuous payment authorities with direct debits, but they are fundamentally different. Direct Debit: processed through the Bacs system, management is done by the company (you set it up with the company, not the bank), covered by the Direct Debit Guarantee — you are entitled to an immediate refund from your bank if an error occurs, the amount and date must be notified in advance, the company must have your written permission (a direct debit mandate), and it can only be used for regular fixed or variable payments from UK bank accounts (not credit cards). Continuous Payment Authority (CPA): processed through the Visa/Mastercard/Amex network, management is done by your bank (you cancel by contacting your bank), not covered by the Direct Debit Guarantee — your refund rights are under the Payment Services Regulations, the company does not need to notify you of amount changes unless contractually required, and it is set up simply by providing card details and can be used for both regular and irregular payments. Key difference for cancellation: to cancel a direct debit, you tell your bank — but you should also tell the company. To cancel a CPA, you tell your bank — and the bank must stop the payments regardless of what the company says. CPAs are easier to cancel in theory, but harder to maintain because there is no central guarantee system. Standing orders are a third type — you set them up with your bank to send a fixed amount on a fixed date, and only you can change them. If you want guaranteed control over your payments, use a standing order or direct debit rather than a CPA. See our UK Banking guide for more on payment types.

Getting Refunds for Unauthorised CPA Payments

If a company takes a payment under a CPA that you did not authorise, or continues taking payments after you have cancelled, you are entitled to a refund under the Payment Services Regulations 2017. The bank must refund you unless it can prove the payment was authorised. For payments that were initially authorised but you later cancelled the CPA: if a payment goes through after you cancelled, the bank must refund it immediately. The refund should be for the full amount of the unauthorised payment. The bank cannot deduct any fees or charges for processing the refund. If the payment was for a varying amount and you were not notified of the exact amount in advance (when the amount was more than you could reasonably expect), you can claim a refund within 8 weeks of the payment date. For credit card CPAs, you may also have rights under section 75 of the Consumer Credit Act 1974 if the payment is for goods or services over £100 and the merchant has breached the contract (e.g. you cancelled a subscription but they kept charging). See our Section 75 guide. For debit card CPAs, you can use chargeback (a voluntary scheme run by Visa and Mastercard) to dispute a payment — this is not a legal right but is often effective. Chargeback must be requested within 120 days of the transaction or the date you became aware of the problem. To claim a refund, contact your bank's fraud or disputes team. If they refuse, complain formally and escalate to the Financial Ombudsman Service. Keep records of all communications and statements showing the disputed payments. The FCA's Consumer Duty requires firms to handle complaints about recurring payments fairly and promptly.

FAQs

Can I cancel a CPA by just calling my bank?

Yes — calling your bank is the quickest way. Under the Payment Services Regulations, your bank must cancel the CPA when you request it. You do not need the merchant's permission.

Does cancelling a CPA cancel my contract with the company?

No — cancelling a CPA only stops the automatic payments. You still owe any money due under the contract. The company may send invoices, use a debt collector, or take you to court for unpaid amounts. Cancel the contract separately if needed.

Can a company refuse to accept CPA cancellation?

The company cannot prevent you from cancelling the CPA through your bank. However, they may try to pressure you not to cancel. Your statutory right is absolute — tell them you have exercised your right under the Payment Services Regulations and the cancellation is effective.

What is the difference between blocking a merchant and cancelling a CPA?

Cancelling a CPA stops the specific recurring payment arrangement. Blocking a merchant stops all payments from that company, including future one-off payments. If a merchant uses multiple merchant IDs, you may need to block rather than just cancel the CPA.

Can I get a refund for CPA payments made after I cancelled?

Yes — your bank must refund any payments taken after you cancelled the CPA. Contact your bank's disputes team, provide evidence of the cancellation request, and demand an immediate refund. Escalate to the Financial Ombudsman if the bank refuses.