Continuous Payment Authority / CPA
A Continuous Payment Authority allows a merchant to withdraw funds from a customer’s card on an ongoing basis. Often used for subscriptions, CPA differs from Direct Debit in its card-based nature and relatively limited regulatory protections compared to bank-authorised mandates.
Applications
E-commerce:
Reduces fraud in online card payments by verifying the cardholder's identity
E-commerce:
Reduces fraud in online card payments by verifying the cardholder's identity
Advantages
- Enhanced security: Reduces unauthorised transactions by verifying that the genuine account holder is authorising the payment
- Enhanced security: Reduces unauthorised transactions by verifying that the genuine account holder is authorising the payment
Challenges
- User Experience: Additional authentication steps can cause friction and increase checkout abandonment
- User Experience: Additional authentication steps can cause friction and increase checkout abandonment
