How Smart Repay Works

Learn how Smart Repay works at Capital on Tap, how to set it up, and what happens if a repayment fails.

Overview

Smart Repay is an automatic repayment feature that replaces your traditional single monthly payment, repaying your Capital on Tap Business Credit Card account balance on a daily or weekly basis instead. Depending on your bank, we automatically set your scheduled repayments up via Direct Debit or Open Banking. 

What is Smart Repay?

Smart Repay is an automatic repayment feature that replaces your traditional single monthly payment. Instead, we automatically repay your Credit account balance on a daily or weekly basis, using either Direct Debit or Open Banking .

We assign your payment method automatically, based on whether your linked bank supports Open Banking payments.

This helps you:

• Repay your balance more quickly.

• Regularly free up your available credit.

• Avoid large, single monthly repayments.

How do I set up Smart Repay?

1. Log in to your account online or via the app.

2. Go to the 'Payments' section and select 'Smart Repay'.

3. Choose your schedule: 'Weekly Repay' or 'Daily Repay'. Note that Daily Repay will only be available for banks that support Open Banking payments.

4. Follow the on-screen steps to link your bank account. You'll be redirected to your bank's app or online portal to authorise the payment.

5. Once confirmed, you'll be redirected back to the Capital on Tap app and your Smart Repay schedule will be active.

You'll only see the payment method that applies to your business — either Direct Debit or Open Banking — based on your bank

How is the Smart Repay amount calculated?

We calculate the Smart Repay amount based on your full running credit balance at the time the repayment is scheduled. This is different from your monthly statement closing balance. As a result:

• The repayment amount may change if your balance fluctuates between scheduled repayments.

• The amount may not align with the balance shown on your statement.

• You cannot set up partial or fixed repayments, since Smart Repay aims to clear your full running balance.

How do weekly Smart Repay repayments work?

We calculate and take your weekly Smart Repay payment at 7am every Monday, based on your account balance at that time.

Any purchases made after Monday morning won't be included in that week's repayment. Instead, they'll be part of the following week's scheduled payment.

How do daily Smart Repay repayments work?

We process daily Smart Repay payments as an instant bank transfer at 2pm on weekdays (Monday to Friday). These repayments typically clear and reflect on your available balance by the end of the next working day.

If you're on the Pro plan and use Daily Repay, you can earn a boosted cashback rate of 1.25% on your card spend, as long as your full balance clears daily. If a payment fails or doesn't clear your full balance, you can make a manual repayment in full that day to still qualify for the boosted rate.

If a scheduled payment falls on a UK public holiday, we'll take it on the next working day instead.

Which banks support Open Banking Smart Repay?

To use Open Banking  for Smart Repay, your linked bank account needs to support Open Banking payments. Compatible banks currently include:

• Barclays

• HSBC

• HSBC Kinetic

• Lloyds

• Royal Bank of Scotland

• Santander

• Bank of Scotland

• Danske Bank

• Monzo

• Mettle

• Chase Bank

This list is accurate as of September 2026 and can change. If your bank isn't supported, you'll be set up on Direct Debit instead.

Why does the Smart Repay amount fluctuate between scheduled repayments?

We calculate the Smart Repay amount based on your real-time running balance. This balance can change between repayments due to various factors, including:

• New purchases made with your card

• The final clearing of transactions that were previously pending

• Refunds being processed and credited to your account

• Manual repayments made separately from the Smart Repay schedule

It's normal for the amount to adjust. This is because it dynamically reflects your current outstanding balance at the time each repayment is scheduled.

Are pending transactions covered by Smart Repay?

Repayments may not include transactions that are still pending and have not yet cleared. A pending transaction will be included in your next scheduled repayment once it settles and is added to your payable balance.

What happens if a Smart Repay payment fails?

• Weekly Smart Repay: We don't retry the failed payment. We schedule a new repayment for the following Monday, based on your updated running balance. If weekly repayments fail 2 times in a row, Smart Repay automatically disables and repayments revert to monthly Direct Debit.

• Daily Smart Repay: We attempt the payment again the following day. If daily repayments fail 3 times in a row, Smart Repay automatically disables and repayments revert to monthly Direct Debit.

Why has Smart Repay been disabled?

Smart Repay automatically disables if:

• Daily repayments fail 3 times consecutively.

• Weekly repayments fail 2 times consecutively.

• Your Open Banking connection expires or needs refreshing.

• The linked bank account becomes unsupported.

• You change your linked bank account.

When this happens, repayments revert to monthly Direct Debit. To re-enable Smart Repay, check your Open Banking connection in the Capital on Tap app or web portal, and set it up again if prompted.