Stop a draft by contacting your bank or the company taking the money

You can stop an automatic draft in two ways: tell your bank to block it, or tell the company doing the drafting to stop. The fastest route depends on how much time you have. If the draft is scheduled for tomorrow, call your bank immediately. If you have a week or more, you can contact the company directly and ask them to cancel the arrangement.

Your bank can place a stop payment order on a specific draft, which tells them to reject that transaction when it arrives. This works for one-time drafts or recurring ones. The company taking the money can also remove your authorization, which stops all future drafts from that source. Both methods work, but they handle different situations.

Keep in mind that stopping a draft does not erase what you owe if the money was for a legitimate bill or service. It only prevents the bank from releasing the funds. If you stop a draft for a medical bill, utility payment, or loan, the creditor can still pursue collection or report the missed payment to credit bureaus.

Key Takeaways

  • Call your bank's customer service line to place a stop payment order on a specific draft; this usually costs $25 to $35 and takes effect within one business day.
  • Contact the company taking the money directly and ask them to cancel the authorization; this is free and stops all future drafts from that source.
  • Stopping a draft does not erase the debt — the creditor can still pursue payment or report a missed payment to credit bureaus.
  • If you stop a draft by mistake, you can ask your bank to reverse the stop payment order, but you must do this before the next scheduled draft date.
  • For recurring drafts you no longer want, canceling the authorization with the company is more permanent than a one-time stop payment.

How to contact your bank to stop a draft

Call the customer service number on the back of your debit card or on your bank's website. Tell them you want to place a stop payment order on a specific draft. Have ready the date the draft is scheduled, the amount, and the name of the company taking the money. Your bank will ask you to confirm these details to make sure they block the right transaction.

Most banks charge a fee for a stop payment order, typically between $25 and $35. Some banks waive the fee if you are a premium account holder or if the draft was unauthorized. Ask about the fee before you authorize the stop payment. The order usually takes effect within one business day, though some banks can place it immediately over the phone.

After you place the stop payment order, ask your bank for a confirmation number and write it down. If the draft goes through anyway, you will need this number to dispute the charge. Keep the confirmation until you see the transaction rejected on your next bank statement.

How to contact the company to cancel the authorization

Find the company's customer service number on your bill, on their website, or in your email receipts. Call and tell them you want to cancel the automatic draft authorization. They will ask for your account number with them and may ask why you are canceling. You do not have to explain — simply say you no longer want automatic payments.

Ask the company to confirm in writing that the authorization has been canceled. Request they email you a cancellation confirmation or send it by mail. This creates a record if a draft still goes through after you canceled. Many companies will email a confirmation immediately; others may mail it within a few business days.

If the company refuses to cancel or claims they cannot, ask to speak to a supervisor. If they still refuse, you can contact your bank and place a stop payment order instead. You can also file a complaint with the Consumer Financial Protection Bureau if the company continues to draft after you canceled.

Stopping a draft through your online banking portal

Many banks let you place a stop payment order through their website or mobile app without calling. Log into your account, look for a section called "Payments," "Transfers," or "Account Services," and find the option for stop payment. Enter the date, amount, and company name, then submit the request.

Online stop payments usually take effect within one business day, the same as phone orders. You will receive a confirmation number immediately on screen — take a screenshot or write it down. The fee is the same as a phone stop payment, typically $25 to $35, and will appear on your next statement.

Not all banks offer online stop payments for automatic drafts. If you cannot find the option in your app, call your bank's customer service line instead. Some banks only allow stop payments by phone for recurring drafts.

What happens after you stop a draft

When your bank receives the stop payment order, they will reject the draft when it arrives. The company trying to collect the money will see the rejection and may contact you to ask why the payment failed. If you stopped the draft because you no longer want the service, tell them you canceled the authorization.

If you stopped the draft because you do not have the money, the company may offer a payment plan or ask you to pay by a different method. If you stopped it because you dispute the charge, explain the dispute to the company. They may investigate or ask you to file a formal dispute with your bank.

Check your bank statement a few days after the scheduled draft date to confirm the transaction was rejected. If the draft went through anyway, contact your bank immediately and file a dispute. Provide your stop payment confirmation number as proof you tried to block it.

Reversing a stop payment if you change your mind

If you stopped a draft by mistake and want to let it go through, call your bank and ask them to cancel the stop payment order. You must do this before the next scheduled draft date — once the date passes, the stop payment expires automatically. Your bank will confirm the cancellation over the phone and may send you a written confirmation.

There is usually no fee to cancel a stop payment order. However, if the draft was already rejected and the company has moved on, you will need to contact them directly to restart the automatic payments. Ask them to reactivate the authorization and confirm the next scheduled draft date.

Stopping recurring drafts versus one-time drafts

A one-time draft is a single payment scheduled for a specific date, like a one-off medical bill or a single insurance payment. A recurring draft is set up to repeat on a schedule — monthly for a subscription, quarterly for insurance, or weekly for a loan payment. The method to stop them is the same, but the long-term approach differs.

For a one-time draft, a stop payment order is usually enough. Once that single transaction is blocked, no more drafts will come. For a recurring draft, stopping one payment only blocks that one date. If you want to stop all future payments, contact the company and ask them to cancel the entire authorization. This is more permanent than placing a stop payment order each month.

If you want to keep a recurring service but change the payment method, contact the company and ask to update your payment information. You can switch from automatic draft to credit card, check, or online payment without canceling the service itself.

Disputing an unauthorized draft with your bank

If a company drafted money from your account without your permission, you can file a dispute with your bank. This is different from a stop payment order. A dispute asks your bank to investigate whether you authorized the transaction and to return the money if you did not.

Contact your bank within 60 days of the unauthorized draft. Provide the date, amount, and company name. Your bank will open an investigation and typically return the money to your account within 10 business days while they investigate. If the company can prove you authorized the draft, your bank may take the money back after the investigation closes.

Keep any emails, letters, or receipts showing you did not authorize the draft. If the company claims you authorized it but you did not, provide your bank with evidence of the dispute. Your bank will weigh both sides and make a final decision.

Frequently Asked Questions

How much does it cost to stop a payment?

Most banks charge $25 to $35 for a stop payment order. Some banks waive the fee for premium account holders or if the draft was unauthorized. A few banks charge less, around $10 to $15. Contact your bank to ask about their specific fee before you place the order.

Can I stop a draft if I already authorized it?

Yes. Authorizing an automatic draft does not lock you in permanently. You can stop it at any time by contacting your bank or the company. However, stopping a draft does not erase the debt — if you owe money for a service or bill, the creditor can still pursue payment.

What if the draft goes through after I placed a stop payment?

Contact your bank immediately and file a dispute. Provide your stop payment confirmation number as proof you tried to block it. Your bank will investigate and typically return the money within 10 business days. If the company can prove the stop payment was placed after the draft was already processed, your bank may not reverse it.

How long does it take for a stop payment to take effect?

Most stop payment orders take effect within one business day. Some banks can place them immediately over the phone. If you place the order online, it may take up to one business day to process. Always place a stop payment order at least one business day before the scheduled draft date to be safe.

Is it better to stop a draft or cancel the authorization with the company?

For a one-time draft, either method works. For recurring drafts, canceling the authorization with the company is usually better because it stops all future payments permanently. A stop payment order only blocks one transaction, so you would need to place a new order each month if the company keeps trying to draft.