What a recurring payment or preauthorized line means
A recurring payment or a preauthorized line is money leaving on a schedule. It can be a company pulling from a bank account, a bill payment you set up yourself, or a card subscription that renews. The words tell you it repeats. They do not, by themselves, name the company. Read the rest of the line, then stop it in the place that actually bills you.
Last updated: October 17, 2026
Last checked: Oct 2026
Three different lines that look alike
A preauthorized debit, often shortened to PAD in Canada or called an automatic debit in the US, is permission for a company to take money from the bank account when a bill is due. The Financial Consumer Agency of Canada lists mortgages, utilities, RRSP contributions, insurance, and credit card payments as examples. You fill out an agreement. If you set it up by phone or online, the bank should send a written confirmation at least 3 days before the first withdrawal.
An automatic payment, in the FCAC wording, is different. You arrange the payment yourself from your account to the biller. You can usually change or cancel it in online banking, without asking the company to stop pulling money. The statement may still say RECURRING PAYMENT or PREAUTHORIZED because that is the bank's label for a repeating transfer.
A card subscription is a third case. The card is charged by the store, the app, or a billing company such as Stripe. Stopping a bank account debit does not cancel that card charge. The steps for a card plan are on how to cancel a subscription. A company pulling from the bank account is on ACH and pre-authorized debit. Canadian code numbers for bill payment and commercial PADs are on MISC PAYMENT and bill payment.
How to stop one in the US
The CFPB says you can stop a company from taking automatic payments from your bank account even if you allowed them before. Call the company and take away permission, then follow up in a letter or email. Say whether you are canceling the contract or only changing how you pay. Then call the bank or credit union, say you revoked authorization, and follow up in writing. Payments the company starts after that are errors, and you can ask the bank for a refund.
Some banks also want a stop payment order. The Office of the Comptroller of the Currency's HelpWithMyBank page says you need to notify the bank at least three business days before the transaction is scheduled, and the bank may charge a fee. The notice may be oral or in writing. The bank can require written confirmation of an oral request. If that writing is not received within 14 days, the oral stop payment order ceases to be effective. Named stop payment dollars are on stop payment fees. The CFPB also says banks generally charge fees for stop payment orders, and that canceling the automatic payment does not cancel what you owe. A gym, a cable bill, or a loan still has to be paid another way if the contract is still on.
Watch the account after you send the notices. Tell the bank right away if a payment posts that you did not allow, or that posts after you revoked authorization. US debit dispute timing is on dispute a charge in the US.
How to stop one in Canada
FCAC says you cancel a pre-authorized debit agreement by notifying the biller in writing, and you keep a copy. The agreement should say how to cancel. Canceling the agreement does not cancel the contract or the amount you owe. It tells the biller you want a different way to pay.
If a debit was for the wrong date, the wrong amount, or the contract was cancelled, FCAC says you usually have 90 calendar days from the date the money left the account to report it to your financial institution and ask for the money back. The institution does not have to reimburse you after 90 days. You sign a declaration. If the bad debit caused another fee, such as an NSF fee, ask the institution to reverse that charge too. A transfer of your own money between your accounts may not be reversible. Check the institution's policy.
If the amount changes every month, FCAC says the biller must give written notice of the amount at least 10 days before the withdrawal, unless you agreed to waive or shorten that notice. If the agreement does not set a frequency, or the frequency is variable, the biller must get your approval for each debit. A single payment can also be stopped at the financial institution. Ask how much time they need. That stop can have its own fee.
Upload the statement on Expenvo. The PDF stays on your device. Expenvo lists the lines so you can match a short name to a date and an amount. It does not call the bank, and it does not cancel a subscription.
Questions
- Does stopping the payment cancel the subscription?
- No. The CFPB and FCAC both say canceling the automatic payment does not cancel the contract or the amount you owe. Cancel with the company as well, or arrange another way to pay.
- How soon do I have to tell a US bank to stop the next debit?
- HelpWithMyBank says at least three business days before the payment is scheduled. A bank can require written confirmation within 14 days of an oral request. The bank may charge a fee.
- How long do I have to report a Canadian pre-authorized debit I did not approve?
- FCAC says you usually have 90 calendar days from the withdrawal to report it to your financial institution and ask for the money back. After 90 days the institution does not have to reimburse you.
Sources
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