How does Smart Repay work?
What is Smart Repay?
Smart Repay is an automatic repayment feature designed to replace the traditional single monthly payment. Instead, it utilises Open Banking to automatically repay your Capital on Tap balance on a weekly or daily basis.
The value of the repayment is calculated based on your running credit balance. This helps you to repay your balance more quickly, regularly free up your available credit, and avoid large, single monthly repayments.
How is the Smart Repay amount calculated?
The Smart Repay amount is calculated based on your full running credit balance at the time the repayment is scheduled, not your monthly statement closing balance. This means:
- The repayment amount may change if your balance fluctuates between scheduled repayments.
- The amount may not align with the balance shown on your statement.
- Partial or fixed repayments are not available as it aims to clear the full running balance.
How do weekly Smart Repay repayments work?
Weekly Smart Repayments are calculated and scheduled every Monday morning, based on your account balance at that time.
Please note that any purchases made after Monday morning will not be included in the current week's repayment but will be part of the following week's scheduled payment.
How do daily Smart Repay repayments work?
Daily Smart Repayments are processed as an instant bank transfer at 2pm each day and you can typically expect these repayments to clear and reflect on your available balance by the end of the next working day.
Which banks support Smart Repay?
To use this feature, your Capital on Tap account must be linked to a bank account with one of the following providers:
- Barclays (not Barclays Corporate)
- HSBC
- Lloyds
- Royal Bank of Scotland
- Santander
- Bank of Scotland
- Danske Bank
- Monzo
- NatWest
If your bank is not on this list, you can still manage your repayments using the standard monthly repayment option or by making manual payments via the app or web portal.
Why does the Smart Repay amount fluctuate between scheduled repayments?
The Smart Repay amount is calculated 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 is normal for the amount to adjust, as 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: The failed payment is not retried. A new repayment is scheduled the following Monday based on your updated running balance.
Daily Smart Repay: The payment is attempted again the following day. If daily repayments fail 3 times consecutively, Smart Repay is disabled automatically and repayments revert to monthly Direct Debit.
Why has Smart Repay been disabled?
Smart Repay is disabled automatically if:
- Daily repayments fail 3 times consecutively
- Your Open Banking connection expires or needs to be refreshed
- The linked bank account becomes unsupported
When Smart Repay is disabled, 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 reconnect if prompted.