How to Stop All ACH Payments From Your Checking Account

An Automated Clearing House (ACH) payment is an electronic transfer that moves money directly between bank accounts within the United States. This system facilitates various transactions, from direct deposit of paychecks to automatic bill payments. While convenient, situations may arise where stopping an ACH payment becomes necessary, such as an incorrect amount, unauthorized charge, or service cancellation. Understanding how to halt these debits can safeguard your financial accounts.

Understanding Your Right to Stop ACH Payments

Consumers possess specific rights concerning pre-authorized electronic fund transfers, including ACH payments, under federal law. The Electronic Fund Transfer Act (EFTA), 15 U.S.C. § 1693a, establishes these protections, allowing individuals to stop recurring payments. A pre-authorized payment is defined as a regular, recurring transfer initiated by a third party, such as a utility company or a subscription service. This differs from a one-time payment you initiate.

To stop a pre-authorized ACH payment, you must notify your financial institution at least three business days before the scheduled transfer date. This timeframe provides your bank with opportunity to process the request and prevent the debit. Your right to stop these payments exists even if you initially agreed to them, provided you adhere to the notification requirements.

Steps to Stop a Single ACH Payment

Stopping a specific upcoming ACH payment requires prompt action and accurate information. Before contacting your bank, gather all relevant details: the exact amount, scheduled date, the full name of the originator, and your bank account number. Having this information available will streamline the process with your bank.

You can notify your bank through various channels, including phone, online banking, or a local branch. When communicating, clearly state you want to place a “stop payment” on a specific ACH debit, providing all gathered details. Follow up any verbal notification with written confirmation to your bank to create a formal record. Some banks may charge a fee for stop payment orders, which can range from approximately $15 to $35.

Notifying the originator of your intent to stop payment is beneficial. This can help prevent service interruptions or future attempts by the originator to debit your account. Maintain a record of all communications with both your bank and the originator for your financial documentation.

Revoking Authorization for All Future Payments

To permanently stop all future ACH payments from a specific originator, a formal written revocation is necessary. This process cancels the ongoing authorization. You must draft a formal written notice clearly stating your revocation of authorization for future debits.

This written notice should include a clear statement of revocation, the originator’s name, your bank account number, and the effective date. Send this notice to both your bank and the originator. Using certified mail with a return receipt requested is recommended for both notices, as it provides verifiable proof of delivery and creates a paper trail. Keep copies of the notices and mailing receipts for your records.

What to Do If a Stopped Payment Goes Through

If a stopped ACH payment still processes and debits your account, contact your bank immediately to report the error. Under the Electronic Fund Transfer Act, 15 U.S.C. § 1693g, your bank has a responsibility to recredit your account if a pre-authorized payment was properly stopped but still processed.

You have 60 days from the date the error appears on your bank statement to dispute the charge with your financial institution. The bank is required to investigate your claim and provide a provisional credit to your account while the investigation is underway. If your bank does not resolve the issue to your satisfaction, you have the option to file a complaint with regulatory bodies such as the Consumer Financial Protection Bureau (CFPB).