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Setting up a direct debit 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 direct debit isn't complicated.
The steps to cancel a direct debit from a bank account and a credit card vary slightly, and to cancel an existing direct debit from your credit card, follow these simple steps:
The Australian Code of Banking Practice states that banks should take prompt action in processing direct debit cancellation requests, and the Mutual Code of Banking Practice has a similar stipulation in place for credit unions and mutual building societies.
If you've set up automatic payments on your own through online banking, usually for things like rent or savings deposits, you can cancel them yourself through your banking app or website. Make sure that you do this at least one business day in advance of the scheduled payment so the next payment doesn't get processed during the transition period.
Direct debits can simplify how you make payments, but there are instances when you might want to put a stop to one or more direct debits. Some of the most common reasons to stop direct debits include the following:
If you decide to write a letter or email to cancel your direct debit payment, you'll need to include the information of the direct debit and the account you're referring to.
Bear in mind that cancelling a direct debit in the middle of a contract term can come with repercussions and cancellation fees, so it’s best that you get legal advice in such a situation.
The letter given below should work only as a guide, and remember that you might have to make changes to suit your particular situation.
To:
The Manager
[Name of credit card provider][Name of branch][Address]Account name: [XXXXXXXXXX ]
Credit Card Account No: [XXXXXXXXXXX]
Dear Manager,
RE: CANCELLATION OF DIRECT DEBIT
I request that you cancel a direct debit 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 credit card provider cannot legally refuse to honour your request for a direct debit cancellation. If your card provider refuses to cancel a direct debit, simply inform the representative you’re dealing with that clause 19.1 of the Code of Banking Practice requires the institution to, not just honour your request, but do it promptly. If your credit card provider does not cancel the direct debit, and if it makes further payments through the same direct debit, you can request for a reversal of funds. If you face problems at any stage, you can file a complaint with the institution’s internal dispute resolution team, and if this does not help you can move to the Credit Ombudsman Service or get advice from Consumer Action's public line.
Cancelling a direct debit linked to your credit card is not particularly difficult, but there are some conditions to remember before you go ahead:
Cancelling a direct debit from a bank account or a credit card is not difficult. You still have to contact your credit card provider and instruct it to cancel the direct debit in question. Whether you do this over the phone or in writing, make sure you keep an eye on your account to ensure that your bank did indeed cancel the direct debit.
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I tried to cancel a credit card recurring payment.
However my bank pointed out that clause 19.1 of the 2013 code isn’t to do with credit cards or direct debits. They also pointed out that credit card recurring payments (as opposed to direct debits, which are direct from bank accounts) doesn’t have an unconditional cancelling clause.
Therefore since I had originally agreed to the recurring payment, and even though in the meantime my credit card had expired and a new one was issued, and I hadn’t provided the merchant with the new expiry date, they refused to cancel the credit card recurring payment. They said I had to get the merchant to cancel it.
Therefore how do I cancel this recurring payment?
Hi Jussy,
Thanks for getting in touch with finder. I hope all is well with you. :)
There’s a slight difference between the process of canceling a direct debit from a bank account and a credit card. In your case, the first step you need to take is to get in touch with the concerned merchant. A call, email, or letter should be sufficient to notify your merchant. Ask them formally to cancel your credit card payment arrangement.
After doing so, you can now contact your bank and send them a copy of the agreement you just made with the merchant. After a few days, you may then check with your provider if they indeed cancelled the direct debit.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
I want to cancel direct debit from my personal which is linked to credit card account…. How do I go doing this? As every time I reach the support team on call they are not able to help me…. Plz provide with the solution
Hello Syed,
Thank you for your comment.
The steps you can see above are for cancelation of debit card linked to a credit card. You must contact your credit card provider and instruct it to cancel the direct debit in question. You can check with your provider’s website contact us page to contact them or call them on the contact numbers displayed.
Regards,
Jhezelyn
i want to know that how can i write a letter for cancel debit card
Hi Dinesh,
Thanks for your question.
As your debit card gives you access to your transaction account, you can just write a basic letter informing the bank of your name, account number and account information and the date you want your debit card cancelled. If you would also like to cancel your transaction account you can see this page.
I hope this has helped.
Thanks,
Elizabeth
How must I write the letter to inform my insurance provider not to debit my account for six months, but not to be cancelled due to my contract ending as a temporary employee?
Hi Kgauhelo. Thanks for your question. You may need to wait until the time you wish to cancel the direct debit, as the insurance provider may not be able to arrange a future cancellation of direct debit. The best thing to do is to give them a call and find out what their policy is. Otherwise, please use the example on this page to draft a letter to your provider. Jacob.