How do I stop automatic payments from my bank account? | Consumer Financial Protection Bureau (2024)

You have the right to stop a company from taking automatic payments from your account, even if you previously allowed them. For example, you might decide to cancel a membership or monthly service, or you might want to switch to a different payment method.

To stop automatic payments from your account, here are the steps you can take.

Call and write the company

Call the company and tell them you are taking away your permission for the company to take automatic payments out of your bank account. The company’s customer service should be able to help you, and there might be an online form you can use. Then, follow up by writing a letter or an e-mail. When you contact the company, you can explain whether you are canceling your ongoing contract or subscription, or only changing the way you are paying them. For example, you might cancel automatic payments and decide to pay invoices when they arrive. Click here for a sample letter.

Call and write your bank or credit union

Next, call your bank or credit union and say you have revoked authorization for the company to take automatic payments from your account. Customer service should be able to help you, and your bank or credit union might have a form for this online. Follow up by writing a letter or an e-mail. Click here for a sample letter.

After you contact your bank and the company to clarify that you have revoked authorization from the company, any additional payments initiated by that company would be errors, and you can contact your bank for a refund.

Your bank or credit union might use stop payment orders

Some banks or credit unions might recommend you send them a stop payment order, too. A stop payment order is an instruction to your bank or credit union that tells them not to make a payment to a specified company from your account. Click here for a sample stop payment order.

Banks and credit unions generally charge fees for stop payment orders.

A good idea is to follow your bank’s or credit union’s suggested process, and keep close track of your requests and the dates you made them. That way, if something goes wrong and a payment goes through after you have given your instructions, you can work with the bank or credit union to refund your account.

Monitor your accounts

Tell your bank or credit union right away if you see a payment that you did not allow or a payment that was made after you revoked authorization. Federal law gives you the right to dispute and get your money back for unauthorized transfers from your account, as long as you tell your bank in time. Click here for a sample letter.

Cancelling an automatic payment does not cancel what you owe

To cancel an ongoing contract for a service, like cable or a gym, be sure to cancel your contract with the company as well as telling it to stop automatic payments. If you cancel an automatic payment on a loan, you still have to make payments on the loan using another payment method.

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How do I stop automatic payments from my bank account? | Consumer Financial Protection Bureau (2024)

FAQs

How do I stop automatic payments from my bank account? | Consumer Financial Protection Bureau? ›

You can contact your bank and place a stop payment order on the recurring transaction. Generally, a stop payment order is only good for six months. To stop payment, you will need to notify your bank at least three business days before the next payment is scheduled to be made. Notice may be made orally or in writing.

How do I stop automatic payments on my bank account? ›

You can contact your bank and place a stop payment order on the recurring transaction. Generally, a stop payment order is only good for six months. To stop payment, you will need to notify your bank at least three business days before the next payment is scheduled to be made. Notice may be made orally or in writing.

How do I revoke an automatic payment authorization? ›

If you authorized the bank to make the transfer to the merchant on your behalf, you need to revoke your authorization with the bank. You will need to notify your bank at least three business days before the scheduled date of the transfer and inform it that you wish to stop payment.

How can I stop a payment from processing? ›

To stop payment, you need to notify your bank at least three business days before the transaction is scheduled to be made and your bank may charge a fee. The notice to stop the transaction may be made orally or in writing. A bank can require written confirmation of an oral stop payment request.

Can a company force you to do automatic payments? ›

It's also illegal to bill people for negative options, automatic shipments, or continuity programs without their express consent. Does your company process payments for others?

How do I stop direct deposit immediately? ›

To cancel Direct Deposit, notify your Payer (employer, government agency or payroll provider) of the change. It can take up to 2 pay cycles for Direct Deposit to stop once your employer or payroll provider has received and processed your notification.

Will Cancelling a credit card stop recurring payments? ›

And yes, cancelling a credit card will stop recurring payments. However, it will also prevent you from using your credit card altogether. If you cancel your credit card to stop a payment, you will want to make other payment arrangements with whomever you've given that pre-authorization to.

Can I block an automatic payment? ›

You have a right to stop automatic payments from your account, even if you previously allowed them. To cancel these payments, you'll need to talk to your bank as well as the company or service provider that's receiving the payment.

How do I cancel a pre authorization payment? ›

To cancel a pre-authorized debit agreement, you must notify the biller in writing. Make sure you keep a copy of this notice. Your agreement should have details on how to cancel a pre-authorized debit. Once you cancel the agreement, check your account records to confirm that the pre-authorized debits stop.

How do I stop unauthorized ACH payments? ›

You can use stop payment orders to stop the next scheduled payment, or to prevent all future payments. If it's the latter, you'll need to provide the written order within 14 days of notifying the bank. Once the above has taken place, the ACH payments should no longer take place.

Can I call my bank to cancel a processing transaction? ›

A pending transaction will affect the amount of credit or funds you have available. Canceling a pending transaction usually requires contacting the merchant who made the charge. Once a pending transaction has posted, contact your bank or card issuer to dispute it.

Can you block transactions from a company? ›

You can call the issuer of the debit card and tell them not to allow charges by the specific company. Usually, they'll do this for you. I would ask for details on exactly how this works, as it may vary from issuer to issuer.

What is the federal law for automatic payments? ›

Like the federal UMA, California's ARL provides that if a business sends merchandise or products to a consumer under an automatic renewal of a purchase or continuous service agreement without first obtaining the consumer's affirmative consent, the merchandise or products are deemed unconditional gifts to the consumer, ...

What happens if automatic payment doesn't go through? ›

Not having sufficient funds to complete an automatic payment can lead to overdraft charges from the bank and a return payment fee from the card issuer. If it's not caught in time, a late fee will still be charged and interest charges will begin to accrue.

What happens if automatic payment is declined? ›

If your pre-authorized credit card payment is unsuccessful, you'll receive a Returned Payment Charge.

Can I legally cancel a direct debit? ›

It's your money and your bank account, so you're entitled to cancel your direct debits. As soon as you inform your bank or the company that you wish to cancel your direct debit, they should immediately take action. Once you've cancelled your direct debit, companies shouldn't be able to take money from your account.

Does changing billing address affect automatic payments? ›

Let's say you have a few automatic payments that are charged to your card every month or even annually. If it checks the billing address every time, and you've already changed yours, then the transaction might be declined. This could potentially affect your purchases and/or services.

Does freezing your card stop pending transactions? ›

No. Any pending transactions that have already received authorization will be processed and paid.

Can a bank take money from your account without permission? ›

To be clear, a bank won't withdraw funds without your permission for any other purpose than to cover outstanding debts.

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