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Automatic payments can be a convenient way to make sure your bills get paid on time. But you may decide to stop your automatic debits for a number of reasons, including cancelling a subscription or wanting to pay a bill another way.
You can set up automatic payments from your bank account to pay recurring bills like utilities, insurance, memberships or subscriptions. Or you may also be able to set up automatic debits from your account directly with the company you need to pay. And if you want to cancel or pause these automatic payments at any time, you have the right do so.
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What is an automatic payment from a checking account?
You can use automatic payments to pay recurring bills like your credit card bills, gym membership, utilities, subscriptions, or even loans for your car or home. These automatic deductions can be a convenient way to stay on top of your payments. And some banks may offer perks like lower interest rates on loans when you set up automatic monthly payments.
With automatic payments, you essentially give your permission for a merchant to deduct the money directly out of your bank account.
How to stop automatic payments from your checking account
Federal law offers some protections for automatic debit payments that are recurring. At any time, you’re legally allowed to stop a company from taking automatic withdrawals.
Let’s take a closer look at some of the ways you can cancel automatic payments from your account.
Contact the company you’re paying
Call or write the company’s billing department and tell them you no longer allow it to take automatic payments out of your account. By doing this you’re revoking authorization.
Contact your bank or credit union
In addition to contacting the company you’re paying directly, you can also call or write your bank. Let it know you have revoked authorization for the company to take automatic payments from your accounts. Depending on the bank, you may have to fill out an online form or submit a letter in person.
Issue a stop payment order
You can give your bank a stop payment order even if you haven’t revoked your authorization with the company you’re paying. A stop payment order tells your bank to stop taking payments from your account.
To issue a stop payment order for the next scheduled payment, contact your bank at least three business days before the payment is due to come out of your account. If you want to stop all future payments, your bank may ask for your request in writing. If this is the case, make sure to check with your bank on timing. Generally banks request a letter within about two weeks from your initial request.
Take note: Stop payment orders may only be valid for short time — typically about six months. And some banks may also charge a fee for issuing a stop payment order.
Keep an eye on your account
Even after you submit your request to cancel your automatic bill payment, it’s important to monitor your accounts. If you see any payment activity that you didn’t authorize, or a debit that was made after you revoked authorization, be sure to tell your financial institution right away.
Federal law gives you the right to get your money back, but you have to let your bank know as soon as you catch the mistake.
Submit a complaint if you’re having trouble
If your bank isn’t cooperating or you’re having any other issues getting your bank to stop an automatic payment, you can contact the Consumer Financial Protection Bureau online to file a complaint. You can also call the CFPB at 855-411-CFPB (2372).
What’s next?
If an unexpected payment gets deducted from your account, it could cause issues. For example, if you don’t have enough funds to cover the amount, you could be on the hook for overdraft fees.
You should also remember that stopping your automatic payment doesn’t necessarily end your relationship with the merchant or lender that you were paying. If you still owe money, you may need to find an alternate payment method to pay by your due date and avoid missing a payment. Missing your payment date could potentially affect your credit.
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About the author: Sarah Sidlow is a freelance writer and editor based near Detroit. She has a master’s degree in journalism from Georgetown University. Sarah’s work has appeared in Luxembourg’s national newspaper, Washington City Paper… Read more.
FAQs
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.
Can I block an automatic payment from my checking account? ›
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.
How do I turn off automatic recurring payments? ›
The best way to stop these payments is to first cancel your subscription with the company directly by requesting a cancellation via email or phone. If this doesn't work, you should contact your bank or card company online or by phone to cancel the payment.
What happens if you close a bank account with automatic payments? ›
Automatic Payments
If you have set up recurring debits to your checking account, closing the account won't automatically cancel them. This could lead to you owing the bank money, even if your account is closed. To avoid this situation, cancel or change all automatic debits before closing your checking account.
How do you stop a Direct Debit coming out of your account? ›
You can either get in touch with your bank or building society and tell them which one you want to stop, or you can cancel online or via your banking app. To make things simple, it's also worth telling the organisation you were paying that you've stopped the Direct Debit.
Can I block a direct debit from my bank account? ›
You can also ask your financial institution to stop direct debits from your bank account. You can't ask your financial institution to cancel a direct debit from a credit card – you can only do this directly with your telecommunications provider.
Can I get my bank to block transactions? ›
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.
How do I stop auto transactions? ›
You can stop auto debit transactions by contacting the company that's debiting your account, notifying your bank, and monitoring your account. You can also manage auto debit settings via online banking or mobile apps.
Can you stop recurring ACH payments? ›
Recurring ACH debit payments are able to be cancelled, but you must do so at least three business days before the payment is due. To cancel a recurring ACH payment, you'll need to first contact the company you're paying and inform them that you're revoking their access to your account.
Will cancelling a debit card stop recurring payments? ›
If a recurring payment has already received authorization it will be processed and paid. However, if a recurring payment has not received authorization and is activated while your debit card is turned off, the recurring payment will be declined.
You'll need to contact your bank and let them know that the check shouldn't be honored if it hasn't already been processed – a process known as a “stop payment.” This is done through a careful multi-step process and requires thorough communication with your bank.
How do I revoke authorization for automatic payments? ›
Call and write your bank or credit union. Tell your bank that you have “revoked authorization” for the company to take automatic payments from your account. Click here for a sample letter. Some banks and credit unions may offer you an online form.
Can a bank reverse an automatic payment? ›
Error: If the ACH payment includes incorrect information, such as an incorrect payment or incorrect account information, the bank may reverse the transaction. Stop Payment Request: If the account holder places a stop payment on the ACH transaction before it goes through, the bank may reverse the payment.
How do I stop automatic payments from 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.
What happens if you cancel a direct debit without telling the company? ›
In this case, the company could take action against you if you do not pay. If you don't notify the company, there could be a delay in communication between them and your bank, and they could mistakenly charge you. If they do, you should be able to calm this back through the direct debit guarantee.
Who has the authority to cancel a direct debit? ›
Cancelling Direct Debits - what merchants need to know
Customers can cancel a Direct Debit at any time. Your customer can cancel a Direct Debit mandate at any time, either by informing you directly or through their bank. If a customer asks you to cancel a mandate, make sure they also notify their bank.
Can you block a processing payment? ›
A stop payment is a request from an account holder to a financial institution, such as a bank or credit union, to not process a payment. The payment may be a paper check or an automatic debit payment, like those you set up for a recurring subscription or bill.
Can you block a bank account from sending you money? ›
If you want to prevent someone from sending money to your bank account, you have a few options: 1. Contact your bank: Reach out to your banks customer service or visit a branch to discuss the situation. They can guide you on what steps you need to take to stop the person from sending money to your account.
Is there a way to block ACH payments? ›
Recurring ACH debit payments are able to be cancelled, but you must do so at least three business days before the payment is due. To cancel a recurring ACH payment, you'll need to first contact the company you're paying and inform them that you're revoking their access to your account.
How do I stop unwanted subscriptions? ›
Contact the company that runs the subscription you want to cancel. If the company has instructions on how to cancel, follow those. Keep a copy of your cancellation request, along with notes about any conversations you had and how and when you canceled. Watch your bank or credit card statements.
