How does VRP (variable recurring payment) or sweeping compare to other payment methods?
For many consumers and small businesses, the most well-known methods of recurring payments are via standing order, Direct Debit or continuous payment authority (CPA) – a type of recurring payment that a merchant makes using their debit or credit card details.
The main differences between VRP and sweeping with these types of payment are:
- Each payment is sent via the Faster Payments Scheme, allowing the payments to be received by the merchant or retailer faster
- As the name suggests, each payment can be of a variable amount
- While consumer protection such as chargeback, section 75 rights and Direct Debit Guarantee do not apply to VRP and sweeping, you are still protected under the Payment Services Regulations in relation to unuathorised transactions and where there has been an error in the processing of the payment
- All VRP and sweeping payments set up in relation to your account will be visible through your consent dashboard, which you can access via Anytime Internet Banking or the Mobile App. Using the consent dashboard, you are able to revoke any VRP and sweeping consent that you have set up and stop access to your account by a PISP
See table on Variable recurring payments. What are they and how can they help SMEs?(opens in a new window)
