How to Stop Automatic Payments From a Credit Card

Automatic payments on credit cards offer convenience by ensuring timely bill payments for recurring services. These arrangements are common for subscriptions, memberships, and utility bills. While beneficial for consistency, consumers may need to stop these payments for various reasons, such as canceling a service, addressing unauthorized charges, or managing their budget. Understanding these methods is important for financial management.

Stopping Payments Directly with the Merchant

The most direct approach to stopping an automatic payment involves contacting the merchant or service provider. This method is straightforward and often resolves the issue without further intervention. Identify the specific merchant and gather all relevant account information, such as your customer ID, subscription number, or the email address associated with the service.

Contact the merchant through their designated customer service channels, which include phone, email, or an online portal. Many companies provide an online dashboard where you can manage or cancel subscriptions directly. State your intention to cancel the automatic payment and the associated service. Request a written confirmation, such as an email, and retain this record.

Stopping Payments Through Your Credit Card Company

If direct communication with the merchant proves unsuccessful or is not possible, contact your credit card company. This is useful if the merchant is unresponsive, uncooperative, or if you suspect an unauthorized charge. Provide your credit card issuer with specific details about the disputed transaction.

Provide information such as the merchant’s name, the date and amount of the charge, and any proof of your attempts to cancel with the merchant, if applicable. Your credit card company can then initiate a “stop payment” order or guide you through disputing the charge. A stop payment order instructs the issuer not to honor future charges from that specific merchant. Disputing the charge involves formally challenging a transaction that has already occurred or is pending due to error or unauthorized activity. Some credit card companies may charge a small fee for a stop payment order, and you should make this request at least three business days before the next scheduled payment to ensure it is processed in time.

Consumer Rights for Recurring Charges

Consumers have specific rights and protections concerning recurring credit card charges under the Fair Credit Billing Act (FCBA). This federal law applies to open-end credit accounts, such as credit cards, and addresses billing errors. Billing errors include unauthorized charges, incorrect amounts, or charges for goods or services not received.

Under the FCBA, consumers have 60 days from the date they receive the first statement containing the error to dispute the charge in writing with their credit card issuer. The credit card company must acknowledge receipt of the dispute within 30 days and has up to two billing cycles (90 days) to investigate and resolve the issue. During this investigation, the consumer is not obligated to pay the disputed amount or any associated finance charges, though they remain responsible for the undisputed portion of their bill. The FCBA also limits a consumer’s liability for unauthorized charges to $50.