Setting up a pre-authorized payment from your credit card can be a convenient way to keep on top of ongoing everyday payments such as phone bills or internet streaming subscriptions. However, if you’d rather have more control over how and when your payments are made, cancelling a pre-authorized payment isn’t a complicated process. Here’s why.
Pre-authorized payments can simplify how you make payments, but there are instances when you might want to put a stop to one or more of these payments. Some of the most common reasons to stop pre-authorized payments include the following:
You can usually cancel a pre-authorized payment by:
When writing a letter to cancel your pre-authorized payment, you’ll need to include the following information:
Keep in mind that cancelling a pre-authorized payment in the middle of a contract term can come with repercussions, so it’s best that you get legal advice in such a situation.
The letter below is only a sample and should work as a guide. Remember that you might have to make changes to suit your particular situation.
To:
[Name of credit card provider][Address]Account name: [XXXXXXXXXX]
Credit card account No: [XXXXXXXXXXX]
Dear Manager,
RE: CANCELLATION OF PRE-AUTHORIZED PAYMENT
I request that you cancel a pre-authorized payment authority previously granted by me to [name of the merchant] with immediate effect.
Find enclosed a copy of the letter I sent to [name of the merchant] instructing it of the same.
Yours faithfully,
[Signature][Name]Your cancellation of the pre-authorized payment should take effect almost immediately. If you’re having any issues stopping the payment, contact your credit card provider immediately to discuss the issue.
Cancelling a pre-authorized payment linked to your credit card is not particularly difficult, but there are some conditions to remember before you go ahead:
Cancelling a pre-authorized payment from your credit card is not difficult: You have to contact your credit card provider and instruct it to cancel the payment in question. Whether you do this over the phone, online or in writing, make sure you keep an eye on your account to ensure that your credit card provider did indeed cancel the pre-authorized payment.
Usually, the answer is yes — but watch out for cash advances and store-specific rules.
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