Debit cards are useful for everyday transactions, but they can also be used to make ongoing costs more convenient to pay.

Recurring transactions are payments that are regularly charged for a range of different services, including insurance, loans and various subscriptions or membership fees. In fact, almost everything in life has some form of subscription these days. You can set up a recurring payment for any service or product that charges you on a regular basis and you get it delivered straight to you.

Subscription life

Whether you want to binge-watch the latest shows on Netflix, Stan, Binge or Disney Plus, you can pay for your subscription with a recurring payment on your debit card. The best thing is you can also enjoy some free trials before committing to the service, so you can practically cancel anytime you want.

99.9% of all gyms will lock you into a recurring payment situation. Whether it’s Fitness First, Anytime Fitness or you train at a local gym there’s no doubt you’re on a recurring subscription.

It’s also no secret that meal delivery has embraced the recurring payment solution. Whether you don’t have the time or energy to cook, you can have all the ingredients ready to cook delivered to your doorstep. HelloFresh, Marley Spoon, Youfoodz or Dinnerly all allow you to customise your menu according to allergies and preferences and you simply give them your debit card and set up your delivery.

There’s so much of the world on recurring payment subscription now, that wasn’t a thing 10 years ago. You can now get

• toilet paper
• razers
• cloud storage
• video games
• software
• pet food
• pet toys

…the list goes on!

These payments can be made manually when they are due, but if it is a monthly cost it can be much easier to set it up as an automatic payment so that you know it is going out of your account but do not have to worry about spending the time doing it yourself.

Sometimes recurring transactions can be charged to a credit card as well, but this can lead to unexpected interest on the account if money comes out just before or after a statement period, a problem that will not be an issue with a debit card.

The only thing to be aware of is what recurring transactions are in place and how long they need to be kept up. If, for example, you subscribed to a service and then cancelled the subscription, you should be able to see whether they have accidentally continued the recurring transaction next time it is due.

Most banks will allow debit card recurring transactions for any organisation providing you have authorised it. To set up a recurring transaction, you will need to provide the following to the organisation that will be charging money to your account:

1. The name on the debit card
2. The debit card number
3. The expiry date
4. Whether the card is MasterCard or Visa

Once this is done the organisation will be able to set up a recurring transaction. To help keep your finances in order, it is also a good idea to ask how frequent the charges will be and what amount will be taken out of the debit card account so that you can keep track of it as well.

These kinds of payments are a great option for people who do not have a lot of time to manage banking needs, and can also be used to help save money.

Setting up a recurring transaction for credit card or loan repayments, for example, can help reduce debts more quickly and cut down on interest in the process. Similarly, arranging recurring transactions for rent or subscriptions means that you will not have to be contacted regularly to transfer or renew services.

How to cancel a recurring payment

If the time comes that you want to cancel your recurring payments, you’ll need to contact the merchant or service provider that’s charging you. You can do this by phone, email or online. The best method is an email, that way you have a paper trail of correspondence if they keep charging you.

Tell them that you want to stop the payments and ask for a confirmation email or text. You should also periodically check your bank statements to make sure that the payments have stopped.

If they haven’t, you can contact your bank and ask them to immediately block the payments. Send them the evidence that you have cancelled the payment and the bank can initiate the chargeback process.

Managing banking and finances is often something that gets pushed aside for other things in life, but with services like recurring transactions, at least there is a compromise. But making these payments on your debit card isa great way to simplify your life and enjoy the things you love. Just make sure you keep track of your spending and budget accordingly.