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It is a standard feature that all card networks have provided for a very long time and is known as the «recurring payment» flag on the card charge that follows the card account number, not the card number (both may or may not be the same).

Originally invented as a convenience feature to free up card users from having to update payment details every time when the card expires, gets lost etc, it has also been abused with nefarious intentions by subscription providers as the only way to stop recurring charges is to contact the service provider which is disinclined from letting a customer go. Banks are bound by card payment networks terms and conditions to honour the recurring charge flag and are not empowered to remove it at the customer's behest.




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