Millions of Britons are unwittingly haemorrhaging money through forgotten subscriptions and recurring charges that slip unnoticed among everyday card transactions. Unlike direct debits, which appear in centralised lists, these continuous payment authorities (CPAs) scatter through statements, making them alarmingly easy to overlook.
The £3.5 Billion Subscription Drain
Research commissioned by digital bank Revolut reveals a staggering financial drain across the UK. Brits waste more than £3.5 billion each year on subscriptions they pay for but do not actively use. More than half of consumers admit they continue paying for services they no longer need or want.
The average person loses approximately £66 annually to these forgotten charges, with procrastination, forgetfulness, and the perceived hassle of cancellation cited as primary reasons. With household budgets under intense pressure during the ongoing cost-of-living squeeze, understanding and managing these payments has become crucial for financial wellbeing.
What Are Continuous Payment Authorities?
A continuous payment authority allows a company to take regular payments directly from your debit or credit card after you have given initial permission. Crucially, these differ from direct debits, which are linked to your bank account and typically appear in a dedicated section within banking applications.
CPAs are attached to your card details, meaning they manifest simply as standard card transactions. They often blend seamlessly with supermarket shops, coffee purchases, and online orders, creating perfect camouflage within your financial activity.
The Payment Systems Regulator (PSR) emphasises that consent forms the cornerstone of how these payments should operate. "We expect firms to ensure consent is clear and that payments cease when it is withdrawn," a PSR spokesperson stated. Businesses should only take recurring card payments with clear, specific, and informed customer permission, including transparent explanations of amounts and frequency.
Why Statement Names Often Confuse
One significant frustration with CPAs involves the merchant names that appear on bank statements. These frequently do not match the service consumers remember signing up for, making identification challenging.
The PSR notes that while it does not directly regulate this payment type, it oversees card schemes that establish rules for merchant name presentation. Sometimes third-party payment processors become involved, which can distort how charges appear. Examples include entries like "PaypalH&M" or "Square*Merchant123ABC" – names that may be truncated or formatted in ways that obscure their origin.
Some merchants proactively show customers in advance how payments will appear, partly to reduce false fraud reports. Nevertheless, for individuals scanning statements quickly, unfamiliar names remain easy to miss entirely.
Practical Steps to Uncover Hidden Subscriptions
The first essential step involves meticulously reviewing your card transactions, ideally across several months. Look for payments that repeat at identical amounts and intervals – monthly charges of £7.99, £9.99, or £14.99 often indicate subscription services.
Many financial institutions are now developing tools to simplify this process. Starling Bank, for instance, offers a "scheduled payments" section within its application that displays recurring card payments linked to subscriptions. "Customers can click on any recurring card payment and cancel the recurring payment in seconds," a Starling spokesperson explained.
Starling's Bills Manager provides summaries of direct debits and regular bills, while its Spending Insights tools allow customers to browse transactions by category. "Customers could ask how much they spend on subscriptions each month before receiving an instant answer," the spokesperson added.
How to Cancel Continuous Payment Authorities
You generally have two primary options for cancelling these payments. The first involves cancelling directly with the company through its website or customer service team. This approach is often required under terms of service and helps avoid subsequent disputes.
The second option entails requesting your bank to stop the payment. Under UK regulations, banks must cancel a CPA upon customer request, even if the company claims you still owe money. Any disputes over fees should then be handled separately. If payments continue after you have withdrawn consent, you may be entitled to a refund.
The PSR stresses that payments should cease when permission is removed, and banks along with card providers are expected to enforce this requirement rigorously.
Can Virtual Cards Provide Solutions?
Some digital banks now offer virtual cards that can be created and deleted instantly. In theory, consumers could use these for free trials and then remove them to prevent automatic charges.
Starling provides this feature but advises caution regarding its application. "We offer these for their budgeting and security benefits," their spokesperson noted, adding that customers "should still cancel free trials with the supplier." Relying solely on card deletion can lead to missed bills or disputes, making it an inadequate substitute for proper cancellation procedures.
The Importance of Regular Financial Reviews
Continuous payment authorities are legal and widely utilised, but their low visibility makes them particularly susceptible to being forgotten. With subscription spending quietly draining accounts, establishing regular review habits becomes essential.
Consistently check your statements, leverage your bank's analytical tools, question unfamiliar merchant names, and cancel anything you no longer need or use. During a cost-of-living squeeze, those seemingly small monthly charges can accumulate rapidly. Unlike direct debits, they will not flag themselves automatically – you must proactively seek them out.
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