Managing Automatic Repayments

Learn how Capital on Tap collects your automatic repayments, and how to manage or cancel them.

Overview

Capital on Tap automatically collects your repayments by Direct Debit or Smart Repay. This article explains your repayment frequency options, how to change them, what happens if a repayment fails, and how to cancel a repayment.

What automatic repayment frequencies are available?

Capital on Tap offers 3 repayment frequencies:

• Monthly: Collected via Direct Debit on your payment due date (exact date may vary by working days).

• Weekly: Collected via Direct Debit (Thursdays) or, if your bank supports Open Banking, via Smart Repay (Monday mornings, clearing instantly). We automatically use the fastest method your bank supports.

• Daily: Only available via Smart Repay, for customers whose bank supports Open Banking. Processed as an instant bank transfer at 2pm on weekdays. Pro customers earn 1.25% cashback with Daily repay.

Weekly via Smart Repay and Daily repayments both require opting in to Smart Repay. 

Once processed, repayments typically clear and reflect in your available balance by the end of the next working day (Smart Repay repayments via Open Banking can clear the same day).

How do I change my repayment frequency?

Your account is set to a monthly repayment frequency via Direct Debit, by default. To change this, you need to opt in to Smart Repay by following the steps below:

1. Log in to the web portal.

2. Navigate to 'Payments'.

3. Scroll down to 'Payments Settings'.

4. Select 'Smart Repay'.

5. Choose your preferred repayment frequency: Daily or Weekly.

6. You'll be securely redirected to your bank's app or website to approve the recurring repayment.

You can opt out of Smart Repay and adjust your repayment frequency at any time from the same page.

Note: Smart Repay always collects your full credit balance. Partial repayments are not available.

How do I update the bank account used for repayments?

To update your linked bank account, log in to the web portal or app and follow these steps:

1. Go to 'Payments'.

2. Select 'Monthly Direct Debit'.

3. Scroll down to 'Bank Details' and click 'Update Bank Details'.

4. Enter the required information and confirm the change.

The new account must be a business account held in the same name as the business on file. Personal accounts are only accepted when a business has ceased trading and a final balance is being cleared.

Note: If your next repayment is due in fewer than 7 working days, make a manual repayment before updating your bank details. This avoids a missed payment.

What happens if my repayment fails?

Next steps depend on how your repayment is collected:

• Monthly (Direct Debit): 2 further collection attempts are automatically scheduled for the Minimum Monthly Payment (MMP), regardless of what payment option you have set (full, fixed, or minimum).

• Weekly or Daily (Smart Repay): No reattempt is made for that specific repayment; a new repayment is scheduled for your next cycle. If repayments keep failing, Smart Repay may be automatically disabled and your repayments will revert to monthly Direct Debit. 

To avoid falling into arrears, make a manual repayment by debit card in the app or web portal as soon as possible.

Note: If you make a manual repayment around the same time as a scheduled retry, you may overpay your balance.

Common reasons repayments fail:

• Insufficient funds in the linked bank account

• Outdated or incorrect bank account details

• The bank account has been closed or changed

Note: Late payment fees may apply, as detailed in your credit agreement.

Can I cancel my automatic repayments?

Under the Direct Debit Guarantee, you have the right to cancel your Direct Debit at any time by contacting your bank, and your bank must action this as soon as you ask.

However, an active Direct Debit mandate is required to maintain your Capital on Tap account. If you cancel it, your account may be restricted or suspended, and you'll still need to make your repayments by another method to avoid falling into arrears.

You can also cancel a single upcoming repayment without cancelling the whole mandate:

• More than two business days before: Contact us and we can cancel that repayment for you.

• Within two business days: We cannot cancel it, but you can contact your bank directly to request they stop that single repayment. Be sure to ask them not to cancel the entire Direct Debit mandate.