How to Stop ACH Payments (2024)

FAQs

Is there a way to stop ACH payments? ›

Recurring ACH debit payments are able to be cancelled, but you must do so at least three business days before the payment is due. To cancel a recurring ACH payment, you'll need to first contact the company you're paying and inform them that you're revoking their access to your account.

The electronic Automated Clearing House (ACH) network facilitates everything from monthly bill payments to direct deposits for paychecks. Account holders and merchants who encounter issues with ACH payments can stop or reverse them, unlike wire transfers which are usually irreversible.

How do I stop unauthorized ACH payments? You can set up an ACH debit block (typically, this is for business accounts) to prevent any electronic withdrawals from an account. If you want to allow expected ACH payments to process uninterrupted, set up positive pay, allowing only approved payments to go through.

The best way to stop these payments is to first cancel your subscription with the company directly by requesting a cancellation via email or phone. If this doesn't work, you should contact your bank or card company online or by phone to cancel the payment.

You can contact your bank and place a stop payment order on the recurring transaction. Generally, a stop payment order is only good for six months. To stop payment, you will need to notify your bank at least three business days before the next payment is scheduled to be made. Notice may be made orally or in writing.

An ACH block prevents all ACH debits and credits, meaning that no transactions of this kind will be authorized from your account. In order to do this, you should contact your bank account to organize an ACH debit block agreement, who will be able to set this up for you quickly and easily.

To stop payment, you need to notify your bank at least three business days before the transaction is scheduled to be made and your bank may charge a fee. The notice to stop the transaction may be made orally or in writing. A bank can require written confirmation of an oral stop payment request.

Issue a stop payment order

You can give your bank a stop payment order even if you haven't revoked your authorization with the company you're paying. A stop payment order tells your bank to stop taking payments from your account.

In some cases, banks charge a fee for making a stop order request. The fees vary by financial institution, the type of account you have and the payment you're stopping. Stop payment requests may also be free depending on your bank.

To withdraw consent, simply tell whoever issued your card (the bank, building society or credit card company) that you don't want the payment to be made. You can tell the card issuer by phone, email or letter. Your card issuer has no right to insist that you ask the company taking the payment first.

How do I freeze recurring payments? ›

You can stop automatic payments coming out of your account by contacting the company or your bank, or by using a subscription cancellation service.

Banks can reverse ACH payments under certain circ*mstances. This process is known as an ACH return or ACH reversal. Still, just because banks can reverse ACH transactions doesn't mean they always will.

Issue a stop payment order

If you want to stop all future payments, your bank may ask for your request in writing. If this is the case, make sure to check with your bank on timing. Generally banks request a letter within about two weeks from your initial request.

You can tell the card issuer by phone, email or letter. Your card issuer has no right to insist that you ask the company taking the payment first. They have to stop the payments if you ask them to. If you ask to stop a payment, the card issuer should investigate each case on its own merit.

A withdrawal request with transaction details is submitted to the customer's bank. They pass on the customer's account information and verification that a withdrawal is authorized. The bank adds the ACH withdrawal to the queue. The ACH network contains a queue of ACH transactions cleared out regularly on business days.