How a variable recurring payment works
The customer sets up the permission once and authenticates with the bank. The consent states its limits, such as a maximum amount per day, week, month or year, and an end date.
After that, the provider initiates each payment without sending the customer back to the bank, as long as the payment fits the limits. Each one is an ordinary account-to-account transfer.
Open Banking Limited, which maintains the UK standard, describes the permission as visible in the customer's banking app and open to being amended or cancelled online.
Sweeping and commercial VRPs
Sweeping is the automatic movement of money between a customer's own accounts, for example from a current account into savings or to repay an overdraft. Sweeping is the only use the nine banks were ordered to support.
Paying a business this way, a commercial VRP, was left to the market. On 2 June 2026 the Financial Conduct Authority welcomed the launch of the UK Payments Initiative's scheme for commercial VRPs, and said that it plans to consult on a long-term regulatory framework for open banking by the end of 2026, subject to legislation.
Why VRPs matter to a product
A VRP does the job of a direct debit or a card on file for subscriptions, bills and top-ups, with the customer in control of the ceiling and the money arriving by bank transfer. Coverage is the limit: outside sweeping, a bank offers VRPs only where it has chosen to.
VRP, direct debit or card on file?
- Direct debit
- The payee pulls under a mandate, with no cap on future amounts set by the payer, and collections take days to complete.
- Card on file
- The merchant stores a card credential and charges it through the card scheme, with chargeback rights for the cardholder.
- Standing order
- A fixed amount on fixed dates, set up by the payer. A VRP varies in amount and timing.
Where a variable recurring payment shows up in a platform
Modules that do the work
- Accounts & IBANsCustomer accounts with their own IBANs, on the partner bank and the rails you choose.
- CheckoutA hosted checkout for cards, wallets, bank payments and crypto, routed to the best provider.
- AuthenticationSign-in, passkeys and second factors for customers and staff, on your identity provider or ours.
- PayoutsMoney out to bank accounts, cards and wallets, on the rail that fits each payment.
Platforms that need it
Guides that go deeper
Where it is written
The laws and standards this page's facts come from.
- Open Banking Limited, Variable Recurring Payments (VRPs)
- FCA, Open banking takes next step forward with launch of UK Payments Initiative scheme, 2 June 2026
- CMA, Retail banking market investigation: the Order of 2017 and open banking (GOV.UK)
General information, not legal advice: what applies to you depends on your services and your market.