Recurring card payments could be impacted by new security rules 

New regulations come into effect tomorrow that could impact repeating payments such as subscriptions and gym memberships

Repeating payments are now subject to the same security as one-off purchases.

Banks in Ireland are warning consumers to be prepared for changes in the way charges are taken from their bank cards by retailers or merchants for recurring charges such as gym memberships or subscriptions.

Starting Tuesday such recurring payments will be subject to the same security measures that apply for one-off online or contactless purchases. 

The ongoing rollout of Strong Customer Authentication (SCA) across Europe has seen an extra layer of security on most online transactions; SCA often requires users to confirm online purchases using their banking app. 

Higher security standards

However, Ireland's banking representative body, Banking & Payments Federation Ireland (BPFI) said these higher security standards will come into effect from tomorrow for recurring card payments where the cardholder's details are kept on file by a retailer or organisation for future use.

Gillian Byrne, head of payments, BPFI, said some customer card transactions could be declined if a merchant does not process the charges in line with the security standards.

"In the coming weeks, you may receive notifications from merchants regarding transactions that are impacted," she said.

"It is essential that you follow the instructions provided by your merchant to avoid any interruption and to ensure continuity of service," she said.

"We are advising cardholders who encounter any issues to contact their merchant directly for further information to resolve the issue as the payment agreement is between a cardholder and the merchant."