stop automatic credit card payments
How To

How To Stop Automatic Payments to Your Credit Card and Save Big

    3 Quick Steps to Stop Automatic Payments

  1. Call or email the company with who you have the automatic payment.

  2. Call or email your bank or credit union to ensure the automatic payment is stopped.

  3. Monitor your account to ensure the payments do stop.

How to Stop Automatic Payments On Credit Cards

Automatic payments linked to your credit card or bank account can be convenient for a product or service that you value but in other instances it becomes inconvenient.

From cable bills to gym memberships, automatic payments are almost always an option. Vendors typically push for automatic payments for two main reasons. First, they know are going to be paid on time. Secondly, it is inconvenient or time-consuming for consumers to cancel ongoing payments.

However, automatic payments on credit cards quickly drain your finances.

Sometimes a service provider may keep on deducting your funds or charging your credit card long after you cancel your membership.

It gets even more complicated when the company charging your credit card won’t respond to your request.

In this instance, you may need to give your bank a stop payment order. This directs your bank to stop allowing the vendor to take payments from your account.

Drawbacks to Automatic Bill Payment

    Drawbacks To Automatic Bill Payment

  • Easy to forget

  • Companies make it hard to stop

  • You may spend money needlessly

  • It’s a hassle if your payment accounts change

  • Could lead to expensive credit card debt

How to Create a Stop Payment Order

While stopping a payment directly with the vendor is always preferable, there may be a time when this does not work. However, even if you have not yet contacted the company that you have the automatic payment with you can still instruct your bank with a stop payment order.

This instruction gives the bank permission to stop allowing the company to withdraw funds from your account.

To stop all future automatic payments to a specific company you will need to contact your bank in writing. The following letter template can be used to instruct your bank to initiate a stop payment order.

To Whom It May Concern,

Please consider this letter as a written stop payment order to instruct you to stop all payments from my account (ACC INFO) to (Company Info). My account information with (Company) is. (ACC INFO).

I wish to stop all future payments to this company from (DATE) in the amount of (Amount that you pay).

Kind Regards,
(Your name)

How To Stop Automatic Payments

If you have called the company or credit provider, it’s a good idea to follow up in writing. This provides tangible proof of your instruction to cancel.

With this being said, your call should still be treated as a sufficient reason to cancel.

Make sure you record the date, time, and representative’s name from the conversation for future reference.

Always confirm your cancelation with a follow-up email

How to Be Cautious with Automatic Payments

Automatic payments for Gyms and other subscriptions can be useful to help you stay on track with regular payments.

However, caution is needed when signing up for such agreements. Consider these points before authorizing a company to make automatic withdrawals:

    4 Steps to Ensure Safe Automatic Payments

  1. Verify the company: Ensure the company is legitimate and credible. You may use an alternative payment method until you are content with the company.

  2. Know your rights: You are not required to repay a loan by automatic debit from your checking account. The only exception is if the loan is an overdraft line of credit. Be wary of a company pressuring you to repay through automatic payments.

  3. Be careful about overdrafts and insufficient funds: If your account is running low when an automatic payment is due, you could face overdraft fees if your balance goes below zero. Your bank and the company may charge you. These fees can add up quickly.

  4. Review terms of the agreement: The company must give you a copy of the agreement. The terms of your authorization must be laid in a clear and understandable way. Make sure you know how much will be taken and how often.

If you would like to learn how to get out of a debt cycle recommends the following six practical ways to become debt free.

What is credit card autopay?

Credit card autopay is a feature provided by most credit card issuers that allow you to schedule monthly payments.

How to set up autopay for Bank of America credit card

To set up autopay for your Bank of America credit card follow the steps below:

  • Log into your account and go to Payment Center under the “Bill Pay” tab
  • If you haven’t set up your credit card for billing, you will need to do so by clicking on the “Add a company or person” tab
  • In the search field type “Bank of America” and select Bank of America credit card
  • Next, type your credit card number.
  • Click “how to pay” after you’ve added your credit card and ensure electronic billing is turned on.
  • Click on “Set up AutoPay” and choose whether you want to pay your bills in full or pay a fixed amount on your schedule.
  • Once you’ve filled out the requirements for your preferred option, click on “Start sending payments” to submit.

Does autopay affect credit score?

Autopay has no direct impact on your credit score. However since payment history is the most important factor in FICO score estimations and autopay helps you make on-time payments, setting up autopay will help with your credit building or rebuilding efforts.

Should I automate my credit card payment?

If you have several bills with different due dates and have trouble keeping up with payments, you can use autopay to make automatic payments from your bank account to avoid late payments.

How to Stop Automatic Payments Quiz

Test your knowledge 

Was this article helpful?

3 out of 4 found this helpful


Lorien is the Country Manager for Financer US and has a strong background in finance and digital marketing. She is a fintech enthusiast and a lover of all things digital.

Financial information reviewed byRoss Loehr - CFP®, MBA
Share on
Read Icon28948 reads
Last Updated: May 22, 2023

stop automatic withtrails
Hugo Miguel Ribeiro
good evening i need some help, i have manys no anathurized transactions in my visa debit card (loyds), but i dont no to cancel online, can you help about this.
    Kimberley SmythStaff
    Hi Hugo, Thanks for the question. You need to contact your visa debit card provider immediately and let them know about the unauthorized transactions. You should be able to find a contact phone number for their customer service on their website. They will lead you through the process of canceling your card and setting up a new one.
    Vandana Vandana
    How can I stop my auto debit

We use cookies to give you the most relevant experience. By using our site, you accept all cookies and our privacy policy. To find out more about what cookies we use you can go to privacy overview