Recurring Payment Contract for the United Kingdom

Recurring Payment Contract Template for England and Wales

A Recurring Payment Contract is a legally binding agreement governed by English and Welsh law that establishes the terms and conditions for regular, scheduled payments between parties. The document outlines payment amounts, frequencies, collection methods, and duration of the arrangement, while ensuring compliance with UK payment services regulations, data protection laws, and consumer protection legislation. It includes provisions for modification, termination, and dispute resolution, making it suitable for both business-to-business and business-to-consumer arrangements.

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What is a Recurring Payment Contract?

The Recurring Payment Contract is essential for businesses operating in England and Wales that collect regular payments from customers or clients. This contract type is specifically designed to comply with UK payment regulations, including the Payment Services Regulations 2017 and relevant consumer protection laws. It provides a comprehensive framework for managing recurring transactions, protecting both parties' interests, and ensuring clear terms for payment collection, modification, and termination. The document is particularly relevant in today's subscription-based economy and is adaptable to various payment frequencies and methods.

What sections should be included in a Recurring Payment Contract?

1. Parties: Identification of contracting parties and their details

2. Background: Context and purpose of the recurring payment arrangement

3. Definitions: Key terms used throughout the agreement

4. Payment Terms: Amount, frequency, and method of recurring payments

5. Duration: Term of the agreement and renewal provisions

6. Termination: Conditions for ending the agreement

7. Data Protection: Handling of personal and payment data

8. Governing Law: Jurisdiction and applicable law

What sections are optional to include in a Recurring Payment Contract?

1. Service Level Agreement: Used when payments are linked to service delivery - typically included in B2B service contracts

2. Change Mechanism: Process for changing payment amounts - recommended for long-term contracts with variable payments

3. Force Majeure: Provisions for extraordinary circumstances - recommended for complex or high-value contracts

What schedules should be included in a Recurring Payment Contract?

1. Payment Schedule: Detailed breakdown of payment amounts and dates

2. Direct Debit Mandate: Authorization for automatic payments

3. Service Description: Details of services linked to payments (if applicable)

4. Data Processing Agreement: Detailed terms for handling personal data

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Genie AI

Document Type

Payment Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions
Clauses
Industries

Payment Services Regulations 2017: Implements EU Payment Services Directive (PSD2), regulates payment services including recurring payments, sets requirements for payment service providers, and establishes consumer protection measures

Consumer Rights Act 2015: Governs contracts between businesses and consumers, ensures fairness in contract terms, provides transparency requirements, and deals with unfair terms and conditions

Data Protection Act 2018 and UK GDPR: Regulates handling of personal and financial data, sets requirements for data processing and storage, establishes rights of data subjects, and requires privacy notices and consent mechanisms

Electronic Commerce (EC Directive) Regulations 2002: Governs electronic transactions, sets requirements for online contracts, and establishes information duties

Financial Services and Markets Act 2000: Regulates financial services activities, sets requirements for payment handling, and establishes regulatory framework

Consumer Credit Act 1974: Regulates credit arrangements and may apply if payments are linked to credit

Unfair Contract Terms Act 1977: Controls unreasonable exclusion clauses and ensures fairness in business-to-business contracts

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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