Collections class · lesson 04
What are recurring card payments?
You pay once by card and agree to the schedule. Every payment after that runs against a secure stand-in for your card - a token - while the card itself stays locked away.
The lesson · how cards go on repeat
How do recurring card payments work?
You save your card once.
You enter your card details once - often through a secure link the business sends you. Your bank may ask you to approve with a one-time PIN or a banking-app check when you first save your card or make a once-off payment; scheduled collections then run without one.
The card becomes a token.
The secure payment system swaps your card number for a token - a random stand-in that can't be turned back into your number. The business holds the token; the real details are held in a vault run by a PCI DSS compliant provider, never by the business.
The schedule runs on the token.
Each due date, the charge runs against the stored token - no re-entering your card, and no one-time PIN for the scheduled payments you've already agreed to.
The business gets paid fast.
Card takings are batched and settled through the acquiring bank. On Click2Pay, the previous day's transactions are settled every business day, less fees, with no retention.
If the card expires or is replaced.
Your bank may pass the new details on so the agreed payments carry on; if not, the charge declines and the business will ask you for new details. Either way, to stop paying, cancel with the business.
The distinction · this is not a debit order
Recurring card vs debit order.
A recurring card payment runs on your card. A debit order pulls from your bank account. They follow completely different rulebooks - especially when something goes wrong.
Recurring card payment
Runs on: your card, via a stored token
Rules: international, longCard-scheme chargebacks - up to 120 days after the statement date for most disputes, up to 180 for some recurring ones.
Debit order
Runs on: your bank account
Rules: local, 60 daysSA debit order rules - 60-day dispute window.
DebiCheck
Runs on: your bank account - mandate approved by you, held at your bank
Rules: local, approved onceSA debit order rules - 60-day dispute window. The mandate you approved at your bank is on record as evidence.
Registered Mandate
Runs on: your bank account - mandate agreed with the business, registered at your bank, not authenticated by you there
Rules: local, on the booksDisputable within the 60-day window - the registered mandate serves as evidence in resolving the dispute.
Both sides · why card, and what to mind
Why use recurring card payments?
Why businesses run on card
Report cardWhat to watch
Counter-documentQuestion time · asked at the counter
Recurring card payment FAQ.
What is a card token?
A random stand-in for your card number, created by the secure payment system. It can't be reverse-engineered back into your number - if it's ever stolen, it's useless to a criminal.
Does the business keep my card number?
No. The business holds only the token. Your actual card details are held in a vault run by a PCI DSS compliant provider, never by the business.
Why don't I get an OTP every month?
Your bank may ask you to approve with a one-time PIN or a banking-app check when you first save your card or make a once-off payment; scheduled collections then run without one, against the stored token.
What happens when my card expires?
Your bank may pass your new card details on, so the payments you agreed to carry on. If it doesn't, the next charge declines and the business will ask you for updated details. Either way, to stop paying, cancel with the business.
How do I stop a recurring card payment?
Cancel with the business first, in writing - check your contract for any notice period. If they keep charging after that, your bank can dispute the charges and charge them back under card-scheme rules. In fraud cases, your bank can stop or replace the card itself.
How long do I have to dispute a card charge?
Card disputes follow Visa and Mastercard scheme rules - up to 120 days after the statement date for most disputes, and up to 180 days after the statement date for some recurring-payment disputes. The exact window depends on the dispute reason.
Is a recurring card payment a debit order?
No. Debit orders pull from your bank account under South Africa's debit order rules, including the 60-day dispute window. Recurring card payments run on your card under international card-scheme rules - a different system end to end.
Does cancelling my card cancel my subscription?
No - the contract lives with the business, and a replacement card may not even stop the charges, because your bank may pass the new details on. Cancel the agreement itself with the business.
By the Click2Pay collections team · Updated 5 October 2026 · fact-checked against card-scheme and bank documentation and PASA's payments FAQ
The curriculum · lessons 01-04