You know that sinking feeling when you check your bank account and find a charge you weren’t expecting. Your balance is lower than you expected, which could mean you’re unable to make a purchase or — worse — the charge
overdrafted your account. Maybe it’s a subscription you forgot about or a free trial that turned into an unexpected monthly payment.
Setting up automatic payments is meant to make life easier, but when they start piling up, they can quickly feel like a drain on your account. The good news is you can learn how to stop automatic payments to regain control of your finances.
What are automatic payments?
Any recurring payment you have pre-authorized, whether it’s deducted from your bank account or charged to your credit card, is considered an automatic payment. Once you give a merchant or service provider permission, they can pull funds from your debit card, credit card, or checking account on the agreed-upon date, usually for an agreed-upon amount. Think of subscription services,
monthly bills, or memberships — anything that you pay for without entering information each time.
The main benefit of automatic payments is convenience since there’s no need to keep track of individual payments or worry about missing deadlines, simplifying your financial routine.
However, those recurring payments can add up over time, especially when they’re services you don’t use or forgot that you’re paying for, like a free trial becoming a monthly subscription you never intended to maintain.
4 ways to stop automatic payments
If you're tired of seeing unexpected charges from automatic payments, it’s time to take control and stop them. Here's how to cancel recurring payments.
The easiest way to cancel recurring payments is to go straight to the source: the company or service provider charging you. Reach out to the billing department and ask, “How do I stop automatic payments from my bank account?” Most businesses will happily walk you through the steps to cancel your subscription or revoke authorization for future payments. This step is often the fastest and easiest option, and it’s usually free of charge.
However, don’t just take their word for it — ask for written confirmation that the cancellation was processed. Keep in mind that even after you’ve canceled, your subscription may still be valid for a few days, depending on the billing cycle. Stay vigilant and double-check your next few statements to confirm that the charges have stopped.
Many companies provide easy-to-use online account management tools that let you cancel automatic payments with just a few clicks. If you’re trying to cancel recurring payments with a service or subscription, check if they have an online portal or app where you can manage your payment settings.
For example, if you’re trying to cancel a subscription service like Netflix or Spotify, logging into your account is usually the quickest way to make changes. Simply go to the billing or payments section, find the recurring payment option, and either cancel your subscription or turn off autopay.
Be sure to follow up with a confirmation email or message. If the cancellation isn't processed in time, companies may still charge you for the upcoming month.
3. Issuing a stop payment order with your bank
If you’ve tried canceling the recurring payment with the merchant and haven’t had any luck, or if you’re unable to access online cancellation tools, issue a stop payment order with your bank. This is a formal request to prevent a specific transaction — like a recurring payment — from going through.
To issue a stop payment, contact your bank directly and explain which transaction you want to block. Most banks allow you to stop payments on checks, debit transactions, and ACH payments, but this process typically incurs a fee of
around $30, depending on your bank or credit union. Although this adds to
your expenses, it can be worth it to avoid larger issues (like unexpected withdrawals) leading to a
negative bank balance.
While this is an effective way to block future payments, it’s important to know that a stop payment only affects that specific payment. It won’t automatically cancel recurring payments or subscriptions. You’ll still need to contact the merchant to revoke authorization for future charges and ensure they cancel the service.
4. Regularly monitoring accounts for unauthorized transactions
Even after taking steps to cancel recurring payments, it’s important to regularly monitor your bank and credit card statements for any unauthorized transactions. Mistakes can happen, or a merchant may continue charging you by accident. Tracking your accounts will help you catch any unwanted charges early.
Most banks and credit card companies offer features like transaction alerts, which notify you whenever a charge is made. If you notice an unexpected charge, act quickly: contact the merchant or service provider to resolve the issue, or reach out to your bank to dispute the charge.
Potential issues and solutions
Stopping automatic payments can provide much-needed control over your finances, but you may encounter a few potential challenges. Here are some common hurdles and solutions to help you navigate them.
Company requirements for written confirmation of revocation
Some companies require you to submit a formal written request when you want to cancel recurring payments or stop automatic payments. This can be a hassle, especially if the company is unresponsive or slow to process the request.
Call customer service to ask about their cancellation process and any necessary paperwork. If they require written confirmation, make sure you send one quickly so you have proof of your request.
Delays in processing stop payments
Even after issuing a stop payment order with your bank or service provider, it can take a few business days to process the request fully. During this time, automatic payments may still be deducted, which can lead to unintended consequences. For instance, if your account balance isn’t sufficient to cover the charge or you’ve exceeded your credit limit, it could result in
overdraft fees or even push you
further into debt.
Follow up with your bank and the service provider to confirm the request is being processed. Monitor your account closely to catch any unauthorized transactions. If a charge still goes through, act quickly to escalate the issue with your financial institution or the merchant.
Fees for stop-payment orders from certain banks
Most banks charge a fee to issue a stop-payment order. This fee can add up, especially if you're stopping multiple payments. Before issuing a stop payment order, check with your financial institution to understand the fee structure. In some cases, you can work with customer service to find an alternative solution.
Ongoing charges from free trials or forgotten subscriptions
Free trials that automatically convert into paid subscriptions can be one of the most frustrating hidden charges. Sometimes, the cancellation process is complicated or requires you to talk to an agent, delaying the cancellation.
Always set reminders to cancel free trials before the paid subscription kicks in. Use a tool like
Rocket Money or track your subscriptions manually to stay on top of your billing cycle. If you miss a cancellation window, contact the company immediately to try to reverse the charge or request a refund.
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