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Whether you’ve noticed a potentially fraudulent charge or you simply changed your mind on a purchase, there are a number of reasons why you might want to cancel a credit card payment. Luckily, there are actions you can take to do so, assuming the payment falls within certain parameters.
Read on to learn how to cancel a credit card payment, whether the charge is still pending or if it’s already posted. You’ll also learn how to stop payments on credit cards if you don’t want your scheduled payment to go through.
Key Points
• Consumers may be able to dispute or stop certain credit card payments if they involve billing errors or suspected fraud.
• The Fair Credit Billing Act (FCBA) provides protections for unauthorized charges, billing mistakes, and certain disputes involving goods or services.
• Cardholders may first try resolving a dispute directly with the merchant before contacting the credit card issuer.
• Stopping or disputing a payment doesn’t eliminate responsibility for paying undisputed balances and minimum payments owed on the account.
• Consumers typically need to act quickly and follow specific procedures, such as notifying their bank or credit card issuer within required time frames.
Can You Cancel a Credit Card Payment?
Per the Fair Credit Billing Act (FCBA), a law that all credit card issuers must follow, there are times when you may be able to withhold a payment. So, if you define “cancel” as disputing a charge instead of making the payment, there are instances when it’s acceptable under the law to cancel a credit card payment.
You can also request to cancel a credit card payment if you believe it’s the result of fraudulent activity.
Related: How to Cancel a Credit Card
Things to Consider Before You Cancel a Credit Card Payment
Before you cancel credit card payments, it’s important to note that the previously mentioned FCBA guidance only applies when you believe a billing error was made. According to the Federal Trade Commission (FTC), examples of billing errors include:
• Charges with the wrong date or amount listed
• Charges for items or services you didn’t accept or that weren’t delivered as agreed
• Mathematical errors
• Instances when the credit card issuer didn’t post your payments or your returns/credits
• Instances when the credit card issuer didn’t send the bill to the appropriate address, assuming they were provided adequate notice of any change in address
• Charges where you’ve asked for written proof of a purchase or an explanation of it, along with a claim of an error and a clarification request
Further, for disputes about goods and services, you generally must have made the purchase on your credit card in your home state or within 100 miles of your home for the laws on credit card disputes to apply. The charge in question must be for more than $5. Credit card rules stipulate that it’s also necessary to have made an attempt to resolve the issue with the merchant first.
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Reversing a Credit Card Payment After It Has Been Made
If you’ve already paid the merchant but are unsatisfied with how they’ve responded to your complaint, contact your credit card company to see if you can get the charge reversed. They may call this a chargeback.
Parties that will get involved in the process, besides you, can include your credit card issuer, the merchant from whom you purchased goods or services, the merchant bank, and the credit card network. This is due to how credit card payments work.
Typically, you’ll receive credit for the disputed amount while an investigation takes place. If you win the billing error dispute, this credit card refund will remain permanent. If the case isn’t decided in your favor, then the amount would get added back to your credit card balance.
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How to Cancel a Credit Card Payment After It’s Made
If you’re hoping to cancel a credit card payment, here are the general steps you should go through to do so.
Attempt to Resolve the Dispute With the Seller
As an initial step, contact the seller of the item you’re unhappy with, and explain the situation. It’s possible, for example, that you received the wrong item, or a part may have been defective in what you received. Perhaps they can send you a replacement. Or you can ask the seller to reverse the charges on your credit card, resulting in a credit card refund.
Avoid Paying the Disputed Amount
If you don’t get satisfaction by working with the merchant, you can decide not to pay the disputed amount and have the situation investigated. To make that happen, though, you need to follow specific steps, starting with reaching out to your credit card issuer.
Contact Your Credit Card Issuer
Write and send a letter to your credit card issuer that outlines the billing error and disputes the charge. Your credit card company should have a billing inquiry address listed on its website.
Make sure to send this letter within 60 days of receiving the billing statement with the disputed charge. Keep copies of the letter, and consider sending it via certified mail with a return receipt.
Await Your Credit Card Company’s Decision
Then, you wait. The creditor has up to two billing cycles, a maximum of 90 days, to resolve the dispute. The result may be that you don’t have to pay the disputed amount at all, you have to pay the full amount, or you need to pay only part of the amount.
If you have reason to believe that the creditor isn’t following the rules set out by the FCBA, you have the right to sue them. If you were to win, the court may award you damages and order the credit card company to pay your attorney fees.
Understand the Limitations
After you’ve filed a dispute, you aren’t required to pay the charge in question until after the investigation ends and a decision is made. That said, you’re required to pay whatever else is owed on this bill, such as a credit card minimum payment or finance charges on the undisputed portion of the bill. And remember that there’s no guarantee you’ll win a lawsuit.
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How to Stop Payments on Credit Cards
Perhaps you want to know how to stop a scheduled payment on a credit card that hasn’t already been made. In this case, you’d need to contact your bank at least three business days before the payment is set to come out. Do so in person, in writing, or over the phone. The financial institution may require a follow-up to this request in writing within 14 days.
Note that even after the bank stops a payment, you may still be responsible for making the payments to the credit card company. That’s part of using a credit card responsibly. Here are some other general tips to keep in mind for the process of stopping payment on a credit card.
Identify the Credit Card Payment You Want to Cancel
When you contact your bank, make sure you’re clear about which payment you want to cancel. If you only have one automatic payment taken out, this wouldn’t apply.
Check the Restrictions That May Apply
Be clear about whether your stopped payment falls within your FCBA rights. Remember that you’re still liable to pay your credit card bill outside of any disputed charges.
Contact the Credit Card Provider to Stop the Pending Payment
If you want to contact your credit card company to stop a pending payment, use the phone number on the back of your card. You can then talk to someone about stopping the payment.
Verify That the Payment Has Been Canceled
Whether you talk to your financial institution or the credit card company, ask for the name of the person you spoke to and a confirmation number. Take good notes, and keep them. Later, you’ll want to check back to make sure that the payment was indeed canceled.
What to Do in the Case of the Non-Reversal of Funds
If you aren’t satisfied with how your credit card company is handling a situation, you can submit an online complaint online to the Consumer Financial Protection Bureau (CFPB) or call them at 855-411-2372.
Also, keep in mind that if your dispute was denied, you can request an explanation from your credit card company. You also have the option to appeal the decision.
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The Takeaway
It’s possible to cancel a credit card payment if it falls within your FCBA rights or it’s due to fraudulent activity. There are protections built into the law for when you receive erroneous billing as well as an established process to follow to address this issue. In the meantime, you’re still liable to make minimum payments outside of the disputed amount.
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FAQ
Can I cancel a pending transaction on my credit card?
Possibly. Contact the merchant and ask them to cancel the transaction. Aim to do so in the day or two before the pending charge is added to your balance. Once it’s posted, you would need to pursue another route, such as filing a dispute or asking for a chargeback.
Does canceling a credit card payment affect your credit score?
If you dispute a charge, it may show up on a credit report, but it shouldn’t directly affect your scores. The Fair Credit Billing Act (FCBA) notes that it’s not legal for someone to be denied credit because they disputed a bill. That said, to avoid your credit score getting dinged, you must keep up with credit card payments outside of the disputed amount.
How long does it take to cancel a credit card payment?
You should provide at least three days’ notice before a bill is set to be taken out of a bank account. That should provide adequate time for the cancellation of the credit card payment.
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