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 Credit (from Latin verb ''credit'', meaning "one believes") is the trust which allows one party to provide money or resources to another party wherein the second party does not reimburse the first party immediately (thereby generating a debt) ...

debit Debits and credits in double-entry bookkeeping are entries made in account ledgers to record changes in value resulting from business transactions. A debit entry in an account represents a transfer of value ''to'' that account, and a credit ...

account whenever the vendor feels money is owed. They are often used by

payday lenders A payday loan (also called a payday advance, salary loan, payroll loan, small dollar loan, short term, or cash advance loan) is a short-term unsecured loan, often characterized by high interest rates. The term "payday" in payday loan refers to ...

porn Pornography (often shortened to porn or porno) is the portrayal of sexual subject matter for the exclusive purpose of sexual arousal. Primarily intended for adults,

websites and subscription sites such as those for magazines. Continuous payment authorities should not be confused with

direct debit A direct debit or direct withdrawal is a financial transaction in which one organisation withdraws funds from a payer's bank account., https://www.directdebit.co.uk/direct-debit-explained/what-is-direct-debit/ Formally, the organisation that calls f ...

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 A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets. Because ...

. 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 A contractual term is "any provision forming part of a contract". Each term gives rise to a contractual obligation, the breach of which may give rise to litigation. Not all terms are stated expressly and some terms carry less legal gravity as t ...

associated with use of the service.

References

Finance in England {{finance-stub

See also

References