How to Cancel Recurring Payments and Stop Unwanted Charges

Recurring payments are automatic charges to a consumer’s credit card or bank account at regular intervals. These payments can be weekly, monthly, quarterly, or annually. Individuals often cancel these payments due to no longer needing a service, managing their budget, or switching providers.

Gathering Necessary Information

Before canceling, gather specific details related to the recurring payment to ensure a smoother process. Key information includes the precise name of the merchant or service provider, your account number or customer ID, and any relevant subscription identification.

Also note the payment amount, the exact date of the last payment, and the last four digits of the credit card or bank account details. This information is typically found by reviewing transaction history on bank or credit card statements. Confirmation emails or the service provider’s website/app are also valuable sources.

Initiating the Cancellation Process

Canceling a recurring payment involves several approaches, with direct communication with the merchant or service provider being the most common. Many companies offer an online portal to manage subscriptions by logging into your account, navigating to settings or billing, and selecting a cancellation option. If an online option is not available, contact the merchant via phone. Be prepared to provide your account details and explicitly state your request to cancel, ensuring you receive a confirmation number or email. Sending a written request via email or mail is also an option; include all relevant account information and keep a copy for your records.

If direct cancellation with the merchant proves difficult or unsuccessful, contact your bank or credit card issuer to stop future payments. Federal law provides consumers the right to stop automatic payments from their bank accounts, even if previously authorized. To stop a payment from your bank account, you must contact your bank at least three business days before the scheduled payment date. This can be done verbally, but banks may require written confirmation within 14 days. Such a request, known as a stop payment order, instructs your bank not to process a specific payment.

Stop payment orders often incur a fee, ranging from $15 to $35, though some premium accounts may waive these charges. A verbal stop payment request is valid for 14 days, while a written request can be honored for up to six months. While a stop payment order prevents funds from leaving your account, it does not cancel your contract or obligation with the merchant. For payments made via credit card, you can also contact your credit card issuer to revoke authorization, though they may first direct you to resolve the issue with the merchant.

For subscriptions initiated through app stores like Apple App Store or Google Play, the cancellation process is managed directly through the device settings or the respective app store application. On an iPhone or iPad, this involves opening the Settings app, tapping your name, then Subscriptions, and selecting the desired subscription to cancel. For Google Play, open the Google Play app, tap your profile icon, then “Payments & Subscriptions,” and finally “Subscriptions” to manage or cancel.

Resolving Persistent Payments or Disputes

After initiating a cancellation, verify that the recurring payments have stopped. This can be confirmed by checking for a cancellation confirmation email from the merchant, reviewing your online account status, or monitoring your bank and credit card statements for unexpected charges.

If charges continue despite cancellation efforts, re-contact the merchant, providing proof of your previous cancellation request, such as a confirmation number or a copy of your written request. If the merchant fails to resolve the issue, you have the right to formally dispute the charges with your bank or credit card company. When disputing a charge, gather all supporting documentation, including communication with the merchant, receipts, and proof of cancellation. For credit card disputes, you have 60 days from the statement date to report billing errors.

For unauthorized electronic fund transfers from a bank account, consumer protections under Regulation E of the Electronic Fund Transfer Act apply. This regulation limits consumer liability for unauthorized transactions, provided the financial institution is notified promptly. Financial institutions are required to investigate unauthorized EFTs and may not delay the investigation by requiring consumers to contact the merchant or file a police report first. If your bank is uncooperative in stopping an automatic payment or addressing an unauthorized charge, you can file a complaint with the Consumer Financial Protection Bureau (CFPB).