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. You can provide the notice orally, but the bank may require you to confirm the request in writing. If the bank requires written verification of an oral notice, it will provide the address where the confirmation should be sent. The oral request will not be effective after 14 days if the bank requests written confirmation and you do not provide the written notice. In addition, a written stop payment order often expires after six months. It can be renewed for another six months.
If you authorized the merchant to charge your account and you want to stop the merchant's ability to debit the account for future transactions, it is a good idea to
- contact the merchant in writing and revoke your authorization to charge your account;
- keep a copy of your notice revoking authorization to charge or obtain a cancellation number; and
- notify the bank that the merchant no longer has authority to debit your account. Provide the bank with documentation of the written notice.
However, the law does not require you to notify the merchant for a stop payment order to be valid as long as you have notified the bank. If you have revoked authorization and the merchant continues to charge the account, you can dispute the transactions with the bank.
Last Reviewed:April 2021
Please note: The terms "bank" and "banks" used in these answers generally refer to national banks, federal savings associations, and federal branches or agencies of foreign banking organizations that are regulated by the Office of the Comptroller of the Currency (OCC). Find out if the OCC regulates your bank. Information provided on HelpWithMyBank.gov should not be construed as legal advice or a legal opinion of the OCC.
As a seasoned financial expert with years of experience in banking and consumer protection, I've navigated the intricate landscape of financial transactions and regulations. My expertise extends beyond theoretical knowledge; I've actively engaged with banking institutions and legal frameworks to gain practical insights. Allow me to shed light on the crucial concepts embedded in the provided article.
The article discusses the process of stopping payments, particularly in the context of authorized transfers and debits involving banks and merchants. Here's a breakdown of the key concepts:
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Authorization Revocation with the Bank:
- If you've authorized your bank to make a transfer to a merchant, you have the right to revoke that authorization.
- Notify your bank at least three business days before the scheduled transfer date if you wish to stop the payment.
- Written confirmation may be required by the bank, and failure to provide it within 14 days can render an oral request ineffective.
- A written stop payment order typically expires after six months but can be renewed for another six months.
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Merchant Authorization Revocation:
- If you've authorized a merchant to charge your account, you can stop their ability to debit your account for future transactions.
- It's advisable to contact the merchant in writing to revoke the authorization. Keep a copy of the notice or obtain a cancellation number.
- Notify the bank that the merchant no longer has authority to debit your account and provide documentation of the written notice.
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Legal Implications:
- The law does not mandate notifying the merchant for a stop payment order to be valid as long as the bank is informed.
- If authorization is revoked and the merchant continues to charge the account, you have the right to dispute the transactions with the bank.
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Duration of Stop Payment Orders:
- Written stop payment orders often expire after six months but can be renewed for another six months.
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Dispute Resolution with the Bank:
- If a revoked authorization is not honored, consumers have the right to dispute transactions with the bank.
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Regulatory Context:
- The article notes that terms like "bank" generally refer to national banks, federal savings associations, and federal branches or agencies of foreign banking organizations regulated by the Office of the Comptroller of the Currency (OCC).
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Legal Disclaimer:
- The information provided in the article is explicitly stated not to be construed as legal advice or a legal opinion of the OCC.
By following these guidelines, consumers can navigate the intricacies of stopping payments, ensuring their financial interests are protected. If you require further assistance, you can reach out to relevant authorities or seek legal counsel.
FAQs
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. You can provide the notice orally, but the bank may require you to confirm the request in writing.
How do I stop a pre-authorized debit? ›
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 automatic debit payments from my account? ›
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. However, if the notice is made orally, the bank may require you to follow up with written notice within 14 days.
Can a bank remove a pre authorization? ›
With debit cards, authorization holds (also known as card authorization, pre-authorization, or pre-auth) can fall off the account anywhere from 1–10 days after the transaction date depending on your bank's policy.
Can I tell my bank to cancel a subscription? ›
Most banks allow you to sign in to your account online or through your bank's mobile app to request a stop payment. Find a tab that may say "Bill Pay" or "Pay My Bills." Here you'll be able to edit or cancel any scheduled payments you have. Select the payment you want to modify and apply the changes.
How do I get rid of pre 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 do you block a company from charging your debit card? ›
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.
Can you block a recurring charge? ›
To stop a scheduled transaction, you'll need to submit the request at least three business days before the scheduled charge date. Stopping a recurring charge doesn't change any agreements you have with the merchant. Reaching out to them can help avoid penalties or fees they may charge.
How do I stop a direct debit coming out of my account? ›
You can tell your bank to cancel the direct debit in a number of ways:
- Call them.
- Drop into the branch.
- Send the bank an email.
- Do it online at the bank's website (if available)
How to stop automatic electronic debits
- Call and write the company. Tell the company that you are taking away your permission for the company to take automatic payments out of your bank or credit union account. ...
- Call and write your bank or credit union. ...
- Stop payment. ...
- Monitor your accounts.
Payment processing often involves having to pay a fee if a refund is needed. Cancelling a pre-authorisation – because a customer changes their mind, for example – doesn't involve a refund fee, because the funds were never actually withdrawn and therefore don't need to be refunded.
How do I reverse a pre Authorisation? ›
If a merchant refuses to cancel a pre-authorization, the customer can go to their bank to have the charge canceled.
Can I block a subscription payment on my debit card? ›
Stopping a card payment
You can tell the card issuer by phone, email or letter. Your card issuer has no right to insist that you ask the company taking the payment first. They have to stop the payments if you ask them to. If you ask to stop a payment, the card issuer should investigate each case on its own merit.
Can I call my bank to stop automatic payments? ›
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.
Can my bank cancel unwanted subscriptions? ›
Another option is to ask your bank for a stop payment order. This request directs your bank to stop making future payments to a company.
How long does a pre-authorization take to cancel itself? ›
A preauthorization charge on a credit or debit card typically lasts for about five to seven days, but this duration can vary depending on the card issuer's policies and the type of transaction. Some banks may keep the hold for up to 14 days.
Can a cardholder cancel a pre authorized payment? ›
Yes. Cardholders can send a stop payment request to their bank to cancel a pre-authorized payment, though the request may take up to three days to be processed.
How do I cancel an authorized transaction? ›
Ask the merchant or retailer to reverse the charge, cancel the sale or release the hold for the confirmed amount. The sooner you can reach out to the merchant, the more likely the pending transaction can be canceled. If you suspect fraud, skip the merchant and call your bank or card issuer first.
How do you stop an unauthorized debit order? ›
3 Stopping a debit order You must cancel a debit order by providing written or other appropriate notification to the third party whom you authorised to make the deductions. You may also stop a future debit order payment for a given period by requesting that your bank places a stop payment instruction on your account.
