VRP
ServicesVariable Recurring Payments
Definition
Variable Recurring Payments let customers safely connect authorised payments providers to their bank account so that they can make payments on the customer's behalf, in line with agreed limits. VRPs offer more control and transparency than existing alternatives, such as Direct Debit payments.
What is Variable Recurring Payments?
VRP (Variable Recurring Payments) in open banking is a payment instruction that lets customers authorise a regulated provider to make multiple future payments from their bank account via open banking APIs. Amounts and timing can vary within limits the customer sets. The UK led with VRP for sweeping and is expanding commercial VRP for paying merchants. For a full guide, see VRP open banking.
Related Terms
Frequently Asked Questions
What is VRP in open banking?
VRP in open banking is a payment instruction that lets customers authorise a regulated provider to make multiple future payments from their bank account via open banking APIs. Amounts and timing can vary within limits the customer sets. It offers real-time settlement, clearer control, and typically lower fees than direct debits.
What is a VRP?
A VRP is a Variable Recurring Payment—an automatic transfer from one account to another at regular intervals, with amounts that can change within agreed parameters. The customer gives one-time consent (a VRP mandate) specifying maximum per-payment amount, cumulative limits, and frequency.
What is the difference between direct debit and VRP?
Direct debit uses legacy batch settlement (e.g. 3 days). VRP uses open banking APIs with real-time settlement. VRP gives the customer more visibility and control (e.g. per-payment and daily caps) and can be revoked or adjusted through the provider. Direct debit remains dominant; VRP is growing for subscriptions, utilities, and sweeping.
What is a VRP bank mandate?
A VRP bank mandate is the single consent a customer gives to an authorised payment provider to initiate future payments from their account. It defines maximum amount per payment, maximum total over a period, and how often payments can be made. The customer can cancel or change it at any time.
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