This help page tells you what you can do to stop a direct debit. It also tells you how you can get a refund by reversing a charge from your financial institution if you paid with a credit card (this includes debit cards where you pay using a “credit” function).
Even if we find you are entitled to a refund, you may not get your money back until after we close our case. This is because we must follow ourcomplaint handling procedures, which give your provider the opportunity to respond to your complaint. The information in this guidance note explains how you may be able to get your money back faster.
If you believe your provider has charged you too much, or taken money from your account without your permission, you can ask the provider for your money back. You can also ask a provider to stop direct debits from your bank account or credit card.
How to stop a direct debit
Before you cancel a direct debit, you should check your contract with your telecommunications provider. Some providers will not provide services to you unless you give authority for payment by direct debit.
To cancel a direct debit from a bank account or credit card, write to your provider saying you withdraw your direct debit authorisation. Keep a copy of the email or letter, as you may need to show this to us or your provider if you make a complaint.
You can also ask your financial institution to stop direct debits from your bank account. You can’t ask your financial institution to cancel a direct debit from a credit card – you can only do this directly with your telecommunications provider.
How to ask for a payment reversal
If a provider takes a payment from your credit card without your authority, you can ask your financial institution to reverse the payment. This is called achargeback.
You should act quickly. Financial institutions will have a time limit within which you have to make a chargeback request.
Your financial institution should have a list on its website of reasons why it will consider a chargeback request. These may include:
- What you purchased was defective, or not as described
- Goods or services were not provided as agreed
- The purchase was cancelled
- A recurring debit was cancelled, but the provider kept taking money
- The wrong amount was taken
- Duplicate transactions
- The bill was already paid by another method
- You did not authorise the transaction
- Fraud
- A credit or refund was promised, but not provided.
You may have to fill out a form, or provide evidence (for example, that you cancelled a contract or returned a device).
Even if your provider has gone out of business (e.g. is in liquidation or administration), you may be able to ask for a chargeback.
FAQs
To cancel a direct debit from a bank account or credit card, write to your provider saying you withdraw your direct debit authorisation. Keep a copy of the email or letter, as you may need to show this to us or your provider if you make a complaint.
How do I stop payment reversal? ›
Be attentive. Authorisation reversals often occur due to human error. For example, when the amount charged to the customer is incorrect, or the item paid for is not actually available. You can avoid this by being attentive to inventory and stock levels, and making sure the correct amount is always charged.
Can you cancel a direct debit and get money back? ›
Can money be collected from my account after I have cancelled a Direct Debit Instruction? No. If you do see a payment after cancelling, contact your bank immediately and claim a refund under the Direct Debit Guarantee.
Can my bank reverse a charge for a refund? ›
In general, most cardholder agreements and legal rules require that consumers first approach the merchant who charged the card to resolve the problem. If that doesn't work, consumers may request a refund or chargeback through their credit card issuer, which is often a bank.
Can direct payments be reversed? ›
Making a Claim. If you notice an error on the same day a payment was made, you can call your bank and reverse the payment immediately. However, if you notice it at any point afterwards, your bank will need to make an 'indemnity claim' to the collecting organisation on your behalf.
Why do I keep getting payment reversal? ›
Common reasons why payment reversals occur include: The item ended up being sold out. The customer is trying to commit fraud. The customer changed their mind after ordering.
Why is there a direct debit reversal? ›
This happens when the bank of the customer isn't in a position to pay the direct debit. In most cases this will be because there are insufficient funds in the account to cover the amount being asked for. This happens when the customer or the bank they use has cancelled the direct debit instruction.
How do I stop Direct Debits from my account? ›
Can you just cancel a Direct Debit? Yes, simply contact your bank and tell them you want to cancel a Direct Debit, and they will be able to do that. If you have access to online banking, most apps will allow you to cancel Direct Debit payments on your phone, tablet or laptop.
What happens after a Direct Debit reversal? ›
Making a Claim
You will be given the reason for the refund and it will be reclaimed automatically by the bank, usually 14 working days later. Customers have the right to cancel a Direct Debit at any time by contacting their bank or building society.
Who has the authority to cancel a Direct Debit? ›
You can cancel your direct debit at any time. You can do this through your bank or directly with the company you are being charged by. If you're wondering who can cancel a direct debit, it must be the account holder. This is to prevent fraud and protect your identity.
Your state consumer protection office or bar association might be able to suggest alternative dispute resolution programs in your area. Small claims courts can resolve many financial disputes. The dollar limits on claims vary by state, but some states set the limit as high as $25,000.
What to do if a business won't give you a refund? ›
If you qualify for a return but the seller won't give you your money back, you have some options:
- Write a complaint letter: we have advice to help you do that and a sample letter.
- Consider getting help from a consumer organization like Call for Action, Consumer Action , or the Better Business Bureau.
Settlement can take between one and five days. Chargeback reversals will be longer again, especially if the merchant disputes the claim. Although disputes can take weeks, even months to resolve, a customer may expect their bank or card issuer to provide the refund while the dispute is ongoing.
Can I block a Direct Debit payment? ›
You can either get in touch with your bank or building society and tell them which one you want to stop, or you can cancel online or via your banking app. To make things simple, it's also worth telling the organisation you were paying that you've stopped the Direct Debit.
Is it illegal to cancel a Direct Debit? ›
Absolutely. Consumers are entitled to cancel any Direct Debits that they have at any time and without notice. It's their bank account, after all! When cancelling Direct Debits, it's good to be sure that the service attached to the direct debit for is not part of a contract of any sort such as a TV or mobile package.
How do you stop a company from debiting your account? ›
Call and write the company
Call the company and tell them you are taking away your permission for the company to take automatic payments out of your bank account. The company's customer service should be able to help you, and there might be an online form you can use. Then, follow up by writing a letter or an e-mail.
What happens when a bank reverses a payment? ›
“Payment reversal” is a blanket term for any situation in which transaction funds are returned to the cardholder's bank account. Payment reversals are also known as “credit reversals” or a “reversal payment.” Authorization reversals, refunds, and chargebacks are all forms of payment reversals.
How long does a payment reversal take? ›
Settlement can take between one and five days. Chargeback reversals will be longer again, especially if the merchant disputes the claim. Although disputes can take weeks, even months to resolve, a customer may expect their bank or card issuer to provide the refund while the dispute is ongoing.
How do I stop a pending transaction on my bank account? ›
Typically you can't cancel a pending transaction. Even if it's fraudulent or the wrong amount, your bank usually needs the transaction to post before it can next steps. That doesn't mean it's impossible to cancel — you can contact the merchant if there is an error and they can usually reverse it.
How long does a bank have to reverse a payment? ›
The National Automated Clearing House Association (NACHA) establishes the rules, deadlines and criteria for a reversal: The reversal request must be processed no later than four banking days from the settlement date of the payment. The reasons for a reversal are limited to: Incorrect payee.
