What are Variable Recurring Payments? (VRP)
VRPs or Variable Recurring Payments are a way of making payments using bank APIs, and present a cheaper and more secure alternative to Direct Debits and card-on-file for recurring payments.
VRPs allow a payment service user to give consent to a regulated third-party provider to make payments from their account based on restrictions such as payment amount and number of payments allowed.
One of the primary use cases for VRP is ‘sweeping’, where funds are automatically transferred between two accounts held by the same user. For example, automatically moving money from a savings payment account to their current account to avoid overdraft fees).
Was this article helpful?
Friendly Score UK Ltd.
52 Brook Street 1st Floor, Mayfair
London W1K 5DS
Call us on +44 20 3709 6726
Company registered in England
Company number 09168668, ICO ZA111687
VAT registration number 206 9758 80
Authorised and Regulated by the Financial Conduct Authority. (FRN: 821100, 781963)