VRP FAQs
Please note: Availability of plans and features may vary by region. Please consult our Product Bundle Description to read the full details.
- What is a Variable Recurring Payment (VRP)?
- Can my company use VRP?
- What type of payments can I collect with VRP?
- How do I set up VRP with GoCardless?
- What are the benefits of VRP?
- Which customers can I collect payments from using VRP?
- How do refunds work with VRP?
- How long does it take for a payment to settle in my bank account?
- How safe is VRP?
- How much will VRP cost?
- What is the maximum limit per transaction when using VRP?
- Who can I contact for support?
- Which banks are supported?
What is a Variable Recurring Payment (VRP)?
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VRPs are a new way to collect recurring payments in the UK using the faster payments rails. VRPs power the recurring payment functionality of our Instant Bank Pay solution.
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It’s a fast, secure and convenient way of collecting recurring payments. Payers only need to authorise the mandate once via their online or mobile banking app, and GoCardless will be able to collect subsequent payments on behalf of the merchant.
Can my company use VRP?
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There are two forms of VRP being developed with the UK banks at the moment:
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Sweeping - This is restricted to use cases where customers are moving money between accounts in their name. Talk to Sales or your Customer Success Manager who will help with assessing your eligibility.
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Commercial - This will make VRPs available to all merchants, but currently not all UK banks support it. Note, there’s on-going discussions between regulators, third party providers and the banks on how Commercial VRP should operate. Especially around consumer protections and pricing.
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What type of payments can I collect with VRP?
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Sweeping to a credit card account to repay debts
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Sweeping to cash savings accounts that are capable of paying interest
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Sweeping to E-money accounts that act as substitutes for current accounts
How do I set up VRP with GoCardless?
It’s a quick process to turn the feature on once you are integrated with our Billing Request API. Check with your Sales or Customer Success Manager to learn more about the integration.
What are the benefits of VRP?
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Faster settlement – funds move into your bank account up to 7x faster than credit cards and up to 3x times faster than with direct debit
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Instant confirmation – for the times when bank debit might be too slow, and when visibility and security are paramount
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Less fraud – with upfront bank account authorisation
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Better success – risk of chargebacks is practically eliminated
Which customers can I collect payments from using VRP?
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Customers must have a GBP denominated account with a bank that that is part of the faster payments network
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Customers must have access to online or mobile banking to complete the authentication and setup the VRP
How do refunds work with VRP?
With GoCardless you can process VRP refunds seamlessly like any other payment we support.
How long does it take for a payment to settle in my bank account?
Payments will settle to your account within 0-1 business days. If a payment is processed before 11am GMT it will be paid out to your bank account on the same day.
Funds move up to 3x faster than bank debit, and up to 7x faster than credit cards.
How safe is VRP?
VRP is very safe due to the Strong Customer Authentication (SCA) mechanism which requires the customer to use their online banking / mobile banking app to authorise the mandate. This greatly reduces the risk of fraud. Furthermore, VRP utilises the long established faster payments network in the UK.
How much will VRP cost?
If you use GoCardless on a Standard, Advanced, or Pro plan, VRP transactions are included in the transaction fee (which varies depending on the plan you’re on).
Depending on your location, VRP may be charged as an international payment.
If you are on Custom Pricing, please reach out to our Support team or your Customer Success Manager.
What is the maximum limit per transaction when using VRP?
The default is £25,000.00 If the default limit you can collect is insufficient then you can request to increase the maximum limit (subject to a risk assessment).
Who can I contact for support?
Please get in touch with our specialist team who can help you with any questions you have about this feature.
Which banks are supported?
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Bank of Scotland Business / Bank of Scotland Personal |
Barclays Business / Barclays Corporate / Barclays Personal / Barclays Wealth |
First Direct |
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HSBC Business / HSBC Personal |
Halifax Personal |
Lloyds Bank Business / Lloyds Bank Personal |
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Monzo Bank Limited |
Nationwide Building Society |
Natwest |
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Royal Bank of Scotland |
Santander |
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