How Do I Stop Automatic Payments In My Bank Account in Canada

By Julien Brault, founder of MooseMoney.

To stop automatic payments from your Canadian bank account, you need to revoke your pre-authorized debit (PAD) agreement with the merchant, then notify your bank. If an unauthorized payment has already been withdrawn, you have 90 days to file a reimbursement claim under Payments Canada's PAD rules.

Cancel With the Merchant First, Then Contact Your Bank

Most automatic payments in Canada are set up through pre-authorized debit agreements, which you signed when you gave a company permission to withdraw funds from your chequing account on a recurring basis. Cancelling starts with the company itself.

"The first thing you should do if you cancel a service for which you signed a pre-authorization form is to revoke your consent directly with the merchant," noted Tim Morris, Chief Banking Officer at Neo Financial.

Contact the company by phone or email and tell them you are revoking authorization for automatic withdrawals. Keep a written record of your cancellation request, including the date and any confirmation number. Many companies allow you to manage recurring payments through an online account portal, so check there as well.

After you have notified the merchant, contact your financial institution and inform them that you have revoked the PAD agreement. Keep in mind that cancelling the automatic payment does not cancel your underlying obligation. If you owe money on a loan or a contract, you still need to arrange an alternative payment method to avoid falling behind.

What to Do if an Unauthorized Payment Has Already Been Taken

If a payment was withdrawn after you revoked your authorization, or if a company debited your account without your consent, Canadian consumers have recourse through the pre-authorized debit reimbursement process governed by Payments Canada. Just reach out to your institution’s customer service, explain the situation and ask them to send you a reimbursement claim form.

Tim Morris from Neo Financial explained the process clearly. "There's a pre-authorized debit reimbursement claim form that needs to be filled within 90 days of the transaction. The refund is usually pretty fast if the transaction was indeed unauthorized," he said.

To file a claim, visit your bank's branch or website and ask for the PAD reimbursement claim form. You will need to provide details about the transaction, including the date and amount. For personal PADs, your bank must return the funds if the claim is valid and submitted within the 90-day window. 

Keep Your Savings Separate From Recurring Debits

One practical way to protect your money from unwanted withdrawals is to keep your savings in a separate account that is not linked to any pre-authorized debits. If all your PAD agreements draw from your chequing account, your savings remain untouched even if a cancellation takes time to process. A high-interest savings account like the Neo Savings Account, which pays interest on every dollar, can serve this purpose while keeping your funds accessible and earning a return.