How to Stop an Auto Draft From a Checking Account

An automatic draft, often called an auto draft or automatic payment, is a pre-authorized electronic transfer of funds from your checking account to a merchant or biller. These payments are typically set up for recurring expenses, such as utility bills, loan payments, or subscription services. Individuals may seek to stop an auto draft for various reasons, including canceling a service, changing their payment method, or correcting an error in the billing.

Gathering Necessary Information

Before attempting to stop an automatic draft, it is important to gather specific details related to the payment. This preparatory step ensures a smoother process, whether you contact the merchant or your bank. You should compile the full name of the company or biller, along with any relevant contact information like their phone number or website. Your account number with the merchant and a clear description of the associated service or product are also necessary.

Additionally, pinpoint the exact amount of the auto draft, the specific date or dates it typically occurs, and its frequency, such as monthly or weekly. You will also need your checking account number from which the funds are drawn and your bank’s routing number. Any documentation of the original authorization for the auto draft, like a signed agreement or an online confirmation, can be valuable.

Stopping Directly with the Merchant or Biller

Stopping an automatic draft often begins by contacting the merchant or biller directly. Companies provide multiple channels for this, including customer service phone lines, online account portals, email, or a written letter via mail for documented record. Request written confirmation of the cancellation and note down the names of representatives, dates, and any reference numbers during phone conversations.

When communicating with the merchant, clearly state your intent to revoke authorization for all future payments. Reference your account number and the specific payment details, such as the amount and scheduled dates. It is important to initiate this contact well in advance of the next scheduled draft date to allow sufficient processing time. This direct approach can sometimes be the quickest way to resolve the payment cessation.

Stopping Through Your Bank

If contacting the merchant does not resolve the issue, you can stop an auto draft through your bank. This process involves issuing a “stop payment order” or formally revoking authorization with your financial institution. Banks require specific information to process these requests, including your account number, the merchant’s name, the payment amount, and the scheduled date of the draft.

Under Regulation E, which governs electronic fund transfers, consumers have the right to stop preauthorized electronic fund transfers. To exercise this right, you must notify your financial institution at least three business days before the scheduled transfer date. While an oral notification is permissible, your bank may require written confirmation within 14 days of your verbal request. Financial institutions may charge a fee for stop payment orders, which can vary. These orders often have a limited duration, such as six months, and may require renewal if continued prevention is needed.

Important Actions After Stopping

After initiating a stop payment, monitor your bank statements to ensure the auto draft has ceased and no unauthorized transactions occur. Maintain a comprehensive record of all communications, confirmations, and notes related to the cancellation. This documentation can be helpful if any disputes arise later.

Stopping a payment does not automatically cancel the underlying service or debt you may owe the merchant. You remain responsible for any outstanding obligations. Formally resolve the original agreement with the merchant, such as paying any remaining balances through an alternative method or formally canceling the service. If the draft attempts to go through despite your efforts, immediately contact your bank to dispute the charge.