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Automatic payments from your bank account can be a convenient way to pay your bills and subscription charges on time. But the day may come when you need to know how to stop automatic payments on a debit card. This could involve changing your account settings, revoking authorization, or contacting your bank.

Canceling your automatic payments with certain vendors and financial institutions can occasionally be a hassle. And sometimes, if you’re not paying attention, months can go by without you realizing that recurring fees are still being deducted from your account.

Here, you’ll learn four effective ways to stop automatic payments when the time comes to do so.

4 Ways to Stop Automatic Payments

If you’re someone who tends to forget to pay bills in a timely manner, automatic payments attached to your debit card can be a financial lifesaver.

Automatic transfers or ACHs (automatic clearing house) can transfer money from your checking account on a specific date to a business, without any checks being written or credit card interest charges being incurred. This method can be used to cover a myriad of life’s expenses, including the cost of a gym membership, cell phone bills, and your favorite streaming services.

But there are some downsides to automatic payments being applied via your debit card. Maybe you accidentally signed up for recurring payments? Perhaps that monthly shipment of protein shakes was initially exciting, but now you’re sick of drinking strawberry-flavored liquids for lunch. Nobody wants to get stuck paying for something they don’t want.

If you want to keep autopay withdrawals from happening, you’ll need to know how to stop recurring debit card payments. Failure to do so can result in a drain on your bank account, and your sanity.

Federal law grants you the right to cancel an automatic debit card payment, or stop ACH payments, even if you previously permitted them. There are generally no fees or penalties for canceling an automatic payment preference.

Here are 4 tips on how to cancel an automatic payment.

1. Turning Off Automatic Payments in Your Account

These days, most utility companies and vendors invite you to automate your finances. When you create an online account, they will encourage you to sign up for automatic payments. This makes it more likely that they will receive your money in a timely fashion and it may allow them to cut down on monthly billing efforts. It also can make it easier for you to stop an automatic payment.

Your automatic payments can usually be set up and terminated simply by switching an option in your settings. Sign in with your username and password and select “opt out of automatic payments” in your personal account. This action is typically performed in the “billing and payment” section in the site menu. If you need help, a customer service representative can often guide you via online chat or over the phone.

Once you’ve turned off your automatic payment feature, it might be wise to document the event. Take a picture of a confirmation message and note the date.

2. Revoking Authorization from Companies

If you can’t turn off your autopay option through an online account, you may have to contact the company directly and revoke the automatic payment authorization. Some vendors will email or mail you what’s known as a “Revoke Authorization” form.

Once you’ve received the Revocation of Authorization form, fill it out, and keep a copy for yourself before emailing or mailing it back. That way, if the automatic payment charges continue, you’ll have evidence of cancellation to show to your banking institution.

3. Calling Your Bank or Credit Union

Another way to stop automatic payments from your debit card is to contact your bank directly. They may ask you to pen a letter to formally revoke authorization, stating that the company and dollar amount is no longer allowed to be electronically debited from your checking account.

Your bank may also have a Revoking Authorization form you can fill out online or in person. Once the form has been processed, any further attempt by the company to withdraw funds can be dealt with by your bank.

4. Issuing a Stop Payment Order

Instead of filing a form to revoke authorization, you could issue a stop payment order. A stop payment order gives your bank or credit union permission to block a company or vendor from taking money from your account. This process could be done over the phone, in an email, or in person. Some banks may charge a fee for this service.

Keeping an Eye On Your Bank Account

It is possible, even after taking actions to cancel your automatic payments, that you may still see funds being withdrawn from your bank account. While this is frustrating, you may have to contact the vendor or your bank a second time. It’s a good idea to frequently check your bank account to be sure the automatic payments have stopped. Regular check-ins can be part of managing your checking account in a big-picture way too.

Dealing with Unauthorized Automatic Payments

Paying attention to your bank account can also help keep your online accounts safe. Your bank may even alert you to fraudulent charges — automatic payments being made without your consent for things you never signed up for.

Should You Consider Closing a Bank Account?

It’s good to know how to cancel all automatic payments that seem suspicious. One surefire way to avoid recurring fraudulent charges is to close your bank account completely. But this is a drastic measure that could cost you more time and fees.

Instead, contact your bank or credit union. In many cases, they will credit you for the false debit, block the vendor from making future attempts, and suggest further security measures.

Recommended: How to Switch Banks

Should You Cancel Your Debit Card?

If a company keeps making erroneous or unauthorized automatic payments, one way to put a stop to it is to cancel your debit card and receive a new one. In the cases of fraudulent charges by an unknown vendor, your bank will strongly suggest this in order to protect you.

Knowing When to Give Bank Authorization

In order to effectively stop an automatic payment before it happens, be sure and issue the Revoke Authorization form or stop payment order at least three business days before the automatic payment is due, to give your bank time to process the request.

Remember, stopping an automatic payment doesn’t mean you don’t owe money for products received or services rendered. You’ll have to cancel the service agreement completely, or be on top of paying what you owe by the due date through online payments, mailing a check, or other arrangements.]

The Takeaway

Automatic payments from your checking account are a simple and popular way to pay what you owe on time. They can help you avoid late fees and a trip to the mailbox. If you have an online account, you can discontinue an auto payment with only a few clicks. In most cases contacting the company or vendor directly can also get the job done, or you can ask your bank for help. No one can force you to continue automatic payments against your will, and the control of your bank account is in your hands.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

How much does it cost to stop an automatic payment?

There are typically no fees when you stop an automatic payment option in your online account or if you do so by contacting a vendor directly. However, a bank might charge a processing fee for issuing a stop payment request.

What happens if you close a bank account with automatic payments?

If you close a bank account, companies and vendors will no longer be able to automatically deduct monthly payments tied to that account. You will have to make other arrangements to pay what you owe or discontinue any service agreements.

Will getting a new debit card stop recurring payments?

Yes. A new debit card comes with a new number. You will have to contact companies with your new card information to continue automatic payments.

Photo credit: iStock/vorDa
SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 11/12/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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According to EducationData.org, the average cost of a master’s degree at a public state college is $48,690, and $64,440 at a private school.

To help pay for this expense, graduate-level students sometimes turn to federal graduate loans for assistance. Grad students no longer qualify for federal Direct Subsidized Loans, but they may be eligible to borrow Direct Unsubsidized Loans or Graduate PLUS Loans.

Unlike most other loans in the Direct Loan Program, Direct PLUS Loans require a credit check. If you’re exploring loans to help fund your graduate program, here’s what to know about Grad PLUS Loan credit score requirements and eligibility.

What Are Grad PLUS Loans?

Grad PLUS Loans are federal student loans available to graduate and professional students to help cover educational expenses not met by other financial aid. Offered by the U.S. Department of Education, Grad PLUS Loans require a credit check, but they do not require a cosigner.

The interest rate is fixed, and repayment begins six months after graduation, leaving school, or dropping below half-time enrollment. Grad PLUS Loans allow for borrowing up to the full cost of attendance, minus any other financial aid received. They also offer flexible repayment options, including income-driven plans and opportunities for deferment or forbearance.

Who Is Eligible for Grad PLUS Loans?

Students don’t have to demonstrate financial need to be eligible for a Grad PLUS Loan. However, in addition to meeting basic federal aid requirements, applicants must be enrolled in a certificate- or degree-issuing program at least half-time, and the program must be at an eligible school.

Upon meeting these academic requirements, graduate applicants must also agree to a credit check. If you don’t satisfy the Department of Education’s credit requirement, you’ll need to meet additional Grad PLUS Loan requirements to receive funding.

Grad PLUS Loan Minimum Credit Score

Unlike a traditional consumer loan through a private lender, the Department of Education doesn’t set a minimum Grad PLUS Loan credit score to qualify. Instead, the program states that borrowers can’t have an adverse credit history.

It determines adverse credit as:

•   Having a 90 or more day delinquent balance of $2,085 across one or more accounts.

•   Having a collection or charge-off in the past two years.

•   Having a foreclosure, repossession, bankruptcy discharge, tax lien, wage garnishment, or default within the past five years.

•   Having a federal student debt charge-off or write-off within five years.

Although primary borrowers with adverse credit aren’t eligible on their own, they might still be approved if they meet extra Grad PLUS Loan requirements.

How to Check Your Credit Score

There are a couple of options for those interested in finding their credit score. First, you can check in with your credit card company or bank, as many financial institutions now offer credit scores to their customers. You can also use a free credit score monitoring service.

Since there is no minimum credit score for a Grad PLUS Loan, you may also want to review your credit history. You can review your credit report from all three credit bureaus: Equifax, Experian, and TransUnion.

Your credit reports include details for every credit account under your name and their payment status.

You can request a copy of each credit report in one sitting through AnnualCreditReport.com, the central website of the national credit bureaus.

You’re entitled to a free credit report from each bureau every 12 months. Additionally, you can request up to six free Equifax credit reports every year until 2026; this can be requested directly on Equifax’s website.

Tips for Maintaining a Good Credit Score

Although there isn’t a minimum credit score for Grad PLUS Loans, maintaining a positive credit profile today can be advantageous if you need loans for future academic years, or decide on a student loan refinance later on.

Some ways to keep your credit in good standing are by:

•   Making payments on time. Payment history accounts for 35% of your FICO® credit score. Make sure to pay at least the minimum payment by the due date every month.

•   Keeping your credit utilization low. If you have revolving credit, like a credit card, avoid using a high percentage of your available credit limit. As much as 30% of your score is based on credit utilization ratio.

•   Reviewing your credit report for mistakes. Although it’s rare, errors may come up on credit reports that can bring your score down. Regularly check your credit report and notify the bureaus of the error if you find one.

•   Keeping your longest credit account in good standing. The age of your credit accounts affect your overall credit score by 15%.

•   Having a mix of credit types. Keeping a mix of credit types could potentially help your credit score by 10%. For example, installment credit (student loan, auto loan, etc.) versus revolving credit (credit cards, home equity lines of credit, etc.).

Recommended: 10 Strategies for Building Credit Over Time

What to Do if You Have Adverse Credit

For students with an adverse credit history, the Grad PLUS Loan program offers two options:

1.    Secure an endorser. This person must not have adverse credit and will be liable to repay the debt if you, as the primary borrower, are unable to do so.

2.    Provide proof of an extenuating circumstance. If your adverse credit history was due to an extenuating circumstance, you can appeal a denied application by providing supporting documentation. Approval isn’t guaranteed.

Regardless of which path you choose, if approved, you’ll also need to undergo PLUS Credit Counseling.

Alternatives to Grad PLUS Loans

Although you have access to apply for Grad PLUS Loans as a graduate or professional student, you’re not guaranteed for approval. For example, if you have adverse credit, but can’t secure an endorser, you might not receive Grad PLUS funding.

Below are some other graduate school loan options and financial aid ideas if you need alternatives.

Grants, Scholarships, and Work-Study

Grants, scholarships, and work-study are financial aid opportunities that can help bridge the gap for your graduate education.

The first step to seeing whether you’re eligible for these programs is completing a Free Application for Federal Student Aid (FAFSA®). If you’re eligible for federal, state, or school-sponsored programs, you’ll be notified through your FAFSA award letter.

You can also apply for need- or merit-based grants and scholarships through private organizations, professional associations, or other nonprofit community groups.

Personal Loans

If you’ve exhausted federal student aid options, a personal loan from a private lender could be an option to consider. Generally, you can use personal loans for nearly any large, upcoming expense, including costs associated with graduate school, like transportation or supplies.

Personal loans are available through private entities, like banks, credit unions, online lenders, and also through community groups and associations.

Recommended: Common Reasons to Apply for a Personal Loan

Private Student Loans

Another financial aid option that operates outside of the federal student loan system are private student loans. Private student loans are specifically for use toward educational expenses, like tuition, fees, and textbooks.

These loans are provided by private banks, credit unions, and financial institutions. Some states and schools also offer private student loan options.

A private student loan is an installment loan, and can have fixed- or variable interest rates. Each lender has its own eligibility requirements and loan terms.

Since these loans aren’t federally owned, they don’t offer the same benefits that federal loans provide, like access to loan forgiveness and extended deferment. For this reason, federal student loans are generally prioritized over private student loan options when evaluating financing options.

Explore Private Student Loan Rates

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

FAQ

Can you be denied a Grad PLUS loan?

Yes, you can be denied a Grad PLUS Loan if you don’t meet the Department of Education’s eligibility requirements. You must be a graduate or professional student who’s enrolled in a degree- or certificate-granting program at an eligible school. You also must not have adverse credit, and must meet the general requirements for federal student aid.

Do Grad PLUS loans check your credit score?

Yes, Direct PLUS Loans, which include Grad PLUS Loans, require a credit check. The credit checks reviews a borrower’s credit history for adverse marks. Despite having adverse credit, however, borrowers might still be able to receive Grad PLUS funding by adding a cosigner or by providing proof of extenuating circumstances.

Are cosigners required for Grad PLUS loans?

Cosigners are not required to qualify for a Grad PLUS Loan. However, if the primary borrower has adverse credit, having a cosigner (also known as an endorser), might help the primary borrower qualify.

Photo credit: iStock/aldomurillo

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SOISL-Q324-050

Labels like prime and subprime help denote loans that are designed for people with different credit scores. Prime loans are built for borrowers with good credit, while subprime loans are designed for those with less-than-perfect credit. While subprime loans can help this group finance big purchases like a home or a car, they also come with potentially significant downsides.

Here are key things to know about prime and subprime loans to help you make better borrowing decisions.

Prime Loan vs Subprime Loan

When you’re shopping for a loan, lenders will consider your credit history to help them determine how much default risk they’d be taking on were they to loan you money.

Your credit score is a three-digit representation of your credit history that lenders use to understand your creditworthiness. While there are different credit scoring models, the FICO® score is one of the most commonly used. Lenders and other institutions may have different rules for which credit scores determine prime vs subprime loans.

For example, Experian, one of the three major credit reporting bureaus, defines a prime loan as requiring a FICO score of 670 to 739. With a score of 740 or above, you’re in super prime territory. Borrowers with a FICO score of 580 to 669 will likely only qualify for subprime loans.

Here are some key differences between the two that borrowers should be aware of.

Interest Rates

Borrowers with lower credit scores are seen as a greater lending risk. To offset some of that risk, lenders may charge higher interest rates on subprime loans than on prime loans.

What’s more, many subprime loans have adjustable interest rates, which may be locked in for a short period of time after which they may readjust on a regular basis, such as every month, quarter, or year. If interest rates are on the rise, this can mean your subprime loan becomes increasingly more expensive.

Down Payments

Again, because subprime borrowers may be at a higher risk of default, lenders may protect themselves by requiring a higher down payment. That way, the borrower has more skin in the game, and their bank doesn’t need to lend as much money.

Loan Amounts

Subprime borrowers may not be able to borrow as much as their prime counterparts.

Higher Fees

Fees, such as late-payment penalties or origination fees, may be higher for subprime borrowers.


💡 Quick Tip: Before choosing a personal loan, ask about the lender’s fees: origination, prepayment, late fees, etc. One question can save you many dollars.

Repayment Periods

Subprime loans typically carry longer terms than prime loans. That means they take longer to pay back. While a longer term can mean a smaller monthly payment, it also means that you may end up paying more in interest over the life of the loan.

Prime Loan vs Subprime Loan: What Type of Loans Are They?

Prime and subprime options are available for a variety of loan types. For example, different types of personal loans come as prime personal loans or subprime personal loans. When you’re comparing personal loan interest rates, you’ll see that prime loans offer lower rates than subprime. Common uses for personal loans include consolidating debt, paying off medical bills, and home repairs.

You can also apply for prime and subprime mortgages and auto loans. What is considered a prime or subprime score varies depending on the type of loan and the lender.

Recommend: How to Get Approved for a Personal Loan

Prime Loan vs Subprime Loan: How to Get One

By checking your credit score, you can get a pretty good idea of whether you’ll qualify for a prime or subprime loan. That said, as mentioned above, the categories will vary by lender.

The process for applying for a prime or subprime loan is similar.

Get Prepared

Lenders may ask for all sorts of documentation when you apply for a loan, such as recent paystubs, employer contact information, and bank statements. Gather this information ahead of time, so you can move swiftly when researching and applying for loans.

Research Lenders

Banks, credit unions, and online lenders all offer prime and subprime loans. You may want to start with the bank you already have a relationship with, but it’s important to explore other options too. You may even want to approach lenders who specialize in subprime loans.

To shop around for the best possible rate, you may be able to prequalify with several different lenders. This only requires a soft credit inquiry, which won’t impact your credit. That way you can see which lender can offer you the best terms and interest rates. Applying for credit will trigger a hard inquiry on your credit report, which will temporarily lower your credit score.

Consider a Cosigner

If you’re having trouble getting a subprime loan, you may consider a cosigner with better credit, such as a close family member. They will be on the hook for paying off your loan if you miss any payments, so be sure you are both aware of the risk.

Subprime Loan Alternatives

There are alternatives to subprime loans that also carry a fair amount of risk. Some, like credit cards, are legitimate options when used responsibly. Others, like payday loans, should be avoided whenever possible.

Credit Cards

Credit cards allow you to borrow relatively small amounts of money on a revolving basis. If you pay off your credit card bill each month, you will owe no interest. However, if you carry a balance from month to month, you will owe interest, which can compound and send you deeper into debt.


💡 Quick Tip: Swap high-interest debt for a lower-interest loan, and save money on your monthly payments. Find out why SoFi credit card consolidation loans are so popular.

Predatory Loans

Payday loans are a type of predatory loan that usually must be paid off when you receive your next paycheck. These lenders often charge high fees and extremely high interest rates — as high as 400%, or more. If you cannot pay off the loan within the designated period, you may be allowed to roll it over. However, you will be charged a fee again, potentially trapping you in a cycle of debt.

The Takeaway

Subprime loans can be a relatively expensive way to take on debt, especially compared to their prime counterparts. If you can, you may want to wait to improve your credit profile before taking on a subprime loan. You can do this by always paying your bills on time and by paying down debt. That said, in some cases, taking on a subprime loan is unavoidable — you may need a new car now to get you to work, for example — so shop around for the best rates you can get.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

Why are subprime loans bad?

Subprime loans are not necessarily bad. However, these loans typically charge higher interest rates and fees than their prime counterparts. Borrowers may also be asked to put down a higher down payment, and they may be able to borrow less.

What is the difference between subprime and nonprime?

Nonprime borrowers have credit scores that are higher than subprime but lower than prime.

What type of loan is a subprime loan?

A variety of loan types may include a subprime category, including mortgages, auto loans, and personal loans. All loans in the subprime category likely have higher interest rates and fees.

Photo credit: iStock/Nikola Stojadinovic

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SOPL-Q324-026

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.

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 can 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 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. Per the Federal Trade Commission (FTC), examples of billing errors include:

•   Unauthorized charges

•   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

•   When the credit card issuer didn’t post your payments or your returns/credits

•   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 from your home for the laws on credit card disputes to apply. The charge in question must be for more than $50. Credit card rules stipulate that it’s also necessary to have made an attempt to resolve the issue with the merchant first.

Recommended: What Is a Charge Card?

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 on 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.

Recommended: When Are Credit Card Payments Due?

How to Cancel a Credit Card Payment After It’s Made

If you’re hoping to cancel 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 to not 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, or that you do. Or, you may end up needing to pay part of it.

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 are 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, of course, remember there’s no guarantee that you would win a lawsuit.

Recommended: What Is the Average Credit Card Limit

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 of 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.

Recommended: Does Applying For a Credit Card Hurt Your Credit Score?

The Takeaway

It is 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.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

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, then you would need to pursue another route, like 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 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 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.

Photo credit: iStock/solidcolours??

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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There’s nothing quite as indulgent as sitting back on your couch, remote control in hand, knowing that your favorite restaurant meal is about to show up at your doorstep. But food delivery can also, unfortunately, lead to racking up credit card debt.

One solution is to use a checking account to pay for food delivery services. Although not every platform allows you to pay directly from your bank account, there are often payment options that still let you tap the funds in your checking account. Learn more about the details below.

What Is Food Delivery?

Third-party food delivery services have revolutionized at-home dining. Gone are the days where pizza was the only option for ordering in. These days, you can get just about any meal your heart desires, all with the tap of a finger.

Third-party delivery platforms connect hungry diners with nearly endless restaurant options. The meals are typically delivered by gig-economy workers who earn income via these apps.

Some of the most popular food delivery services include:

•   Grubhub

•   Uber Eats

•   Postmates

•   DoorDash

There may be other food delivery services available in your area, including restaurants that still deliver directly. However, those options may or may not allow you to use your checking account as payment.

Using Checking Accounts for Payment

Not every food delivery service allows you to link directly to your banking details. You may have to do a bit of research to find a single food delivery that accepts a checking account. That said, most offer the opportunity to pay through a third-party service like PayPal, which in turn makes bank account payment possible.

As of May 2024, neither Grubhub nor DoorDash had an option to input your checking account details. Both do allow you to use a debit card, however, which works almost exactly like a checking account payment. Grubhub also offers PayPal, Venmo, and Amazon Pay linking, among others, while DoorDash links with PayPal, Venmo, and Apple Pay.

Postmates and Uber Eats both give users the option to input their bank account information, which means you can pay directly with your checking account.

Linking Bank Account to Delivery App

For the apps that do allow you to use a bank account, linking the account is usually fairly straightforward. Both Uber Eats and Postmates use a third-party platform called Link to securely connect your bank account to your food delivery app account using your regular login credentials. The data transferred is encrypted, and you can disconnect linked accounts at any time.

Some delivery services may allow you to manually link your bank account using details like the routing number and account number. In that case, you should always be sure you’re only providing your details to certified and secure parties. If you’re using a lesser-known food delivery app, do some research ahead of time to ensure it’s legit before you enter your banking details.

Recommended: Checking Account vs. Debit Card: What’s the Difference?

Benefits of Checking Account Payments

Why pay for your next plate of Pad Thai or other food delivery with your checking account? Consider the following benefits.

No Credit Card Fees for Merchants

While this one may not benefit you directly, you may be saving a small business some money. That can feel like something of a good deed. Although food delivery services have helped connect more restaurants to more at-home diners, they do usually charge the restaurant a commission fee, which can eat into already-slim profit margins.

Credit cards, too, often charge merchants a fee that can be as high as 3.5% per transaction. In short, by using your checking account, you may be offering more direct support to your favorite restaurants.

Easier to Budget Food Spending

Sometimes, the money we put on a credit card feels less than real, which is one reason it can be so easy to spiral into credit card debt. But when money is coming directly out of your checking account, it’s often a bit more tangible. Over time, using your checking account can therefore make it easier to track how much you’re really spending on food delivery each month — and stick to a budget for how much you should be spending.

May Qualify for Cash Back/Rewards

In some cases, delivery apps or your bank may offer cash back or rewards for payments made with a checking account (or debit card). Check with your bank, and review offers from the delivery apps you use for further details.

Recommended: Checking vs. Savings Accounts

Potential Risks and Drawbacks

Although there are many upsides to using a checking account to pay for your food delivery, there are some drawbacks to consider, too.

Overdraft Fees from Erroneous Charges

When you’re drawing directly from your bank account — as opposed to putting money on a credit card — you’re at more risk of overdrafting (spending more than you have in your account). Doing so can rack up pricy overdraft fees, and it’s possible even if you’re careful. Occasionally, for instance, a transaction goes through more than once, which is an error that can be easier to rectify with a credit card.

Less Fraud Protection vs Credit Cards

One good thing about credit cards: They often come with robust fraud protection and easy ways to dispute charges. In fact, many credit card issuers will actually stop a charge they feel is suspicious and prevent it from going through until they get confirmation from you that it’s legitimate. Checking account payments don’t generally have this technology, so that’s something to consider when you’re linking your account to a food delivery service.

Difficulty Disputing or Reversing Charges

As mentioned, no matter the reason for an erroneous or fraudulent charge, it can be more difficult to reverse it when it’s basically cash (as opposed to credit). You can check directly with your bank account to learn about their process for such reversals.

Tips for Safe Checking Account Use

If you are going to use your checking account to pay for your food deliveries (or anything else), follow these tips to help ensure you do so safely.

Monitor Transactions Closely

Regardless of whether you’re using it for food delivery payments, regularly checking your bank account is always a good idea. That way, you’ll see any fraudulent transactions and start the process of rectifying them quickly. Plus, you’ll simply know how much money you have at your disposal.

Adjust Spending Limits/Alerts

Some bank accounts offer built-in spending limits, or they alert you when your account gets below a certain dollar threshold. It can be easy to overdo it with food deliveries, so if you’re going to link your checking account, consider adjusting those limits and alerts accordingly.

Consider Using a Prepaid Card

If you’re trying to keep yourself to a specific budget but don’t want to link your checking account to your food delivery app — or use a credit card that you could easily rack up sky high — consider using a prepaid card instead. That way, you know exactly how much you will spend on food delivery (since amounts in excess of the prepaid limit won’t go through). What’s more, you won’t take on any of the risks associated with linking your bank account.

Alternatives To Checking Payments

As mentioned above, if the delivery service you’re using doesn’t allow you to link your bank account directly, you will likely be able to link a digital payment platform like PayPal, Cash App, or Venmo, which can facilitate direct-from-bank transfers. And most apps will allow you to input a debit card in place of a credit card.

Of course, if you go the old-school way and order directly from a restaurant, you may still be able to pay with plain old cash.

The Takeaway

Ordering food delivery is a favorite convenience of the digital age, and you can enjoy it without using your credit card. It is often possible to link to a checking account or a debit card, which pulls money directly from your checking account, to pay for the food you’ve ordered. Or you might use a digital payment service, and link that to your checking account.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

Can I earn rewards with checking account payments?

It’s rare to find cash back rewards or other incentives linked to payments that come directly from a checking account. However, many debit cards do offer rewards. Using this kind of card is almost exactly like paying directly from your bank account. Check with the financial institution about any rewards available.

What if a delivery never arrives?

If your meal is marked “delivered” but you don’t find it, you should be able to get help from the food delivery service itself. Most apps offer a way to contact their customer support team right from the interface.

Do all food delivery apps accept checking?

Unfortunately, not all food delivery apps allow you to directly link your checking account. However, virtually all of them allow you to use a debit card instead of a credit card, which works almost exactly the same way. In addition, many of the apps allow you to link a third-party platform like Venmo or Cash App, which can facilitate bank account payments.

Photo credit: iStock/FG Trade

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 11/12/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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