How to cancel recurring payments in 4 ways

What is a recurring charge?

A recurring charge is a payment automatically withdrawn from your account for ongoing services, subscriptions, or bills. It’s a set amount or variable cost charged at regular intervals. These charges can simplify payments but also make it easier to lose track of where your funds go.

How do recurring payments work?

Recurring payments start when you give a business permission to charge your debit card, credit card, or linked account on a regular basis. Your payment details are stored securely, and each payment is processed automatically on the scheduled date. You’re typically notified when the charge is complete, so you can track your spending.

Types of recurring payments

Start by compiling a comprehensive list of subscriptions. Automatic payments can be fixed or variable: Fixed payments occur on a schedule and are usually consistent amounts. Variable payments may happen irregularly or the amounts may change.

Some examples of recurring payments include:

• Housing: Rent and mortgage payments can often be set up to recur automatically.
• Utility payments: Often paid through your bank account directly via an ACH transfer, utility companies often have recurring payment options.
• Entertainment: TV streaming and music platforms.
• Software and apps: Subscriptions for software tools or mobile apps with recurring charges.
• Health and fitness: Gym memberships, yoga class passes, or subscription-based wellness apps.
• News and magazines: Subscriptions to newspapers, magazines, or online news platforms.
• Financial services: Many financial services take automatic payments directly from managed accounts or via percentages of executed trades.
• Service providers: Residential and business service providers, like contractors, often offer automatic invoice payments via bank account or credit card. These are often variable on an as-needed, quarterly, or other timeframe.

Benefits of canceling recurring payments

There are various potential reasons for canceling unused subscriptions, such as the below:

• Save money: Canceling multiple subscriptions can lead to significant savings since they won't be draining your budget over time.
• Get the free version: Downgrading plans may help manage subscription service costs without losing the benefits completely. Some services offer cheaper or free versions with fewer benefits or ads.
• Access reduced pricing: To retain their customer base, companies often offer reduced rates to those who cancel or attempt to cancel subscriptions.

How to avoid unwanted recurring charges

First, identify recurring charges by auditing your bank and credit card statements. Build a list of unnecessary subscriptions and track your progress on canceling each one.

You can’t cut all recurring charges, and automatic payments are useful for necessary bills. Consider carefully before stopping recurring payments for your utility bill, for example, because then you’ll have to start paying it manually.

Going forward, you can avoid new unwanted subscriptions by keeping these things in mind:

• Free trials often transition to payments automatically. Note the date that your trial ends and cancel it on time.
• Regularly examine your bank and credit card statements and look for recurring payments.
• If you don’t use a subscription service for more than one month, cancel it.

Once you’re ready to cancel a payment, there are four possible options.

1. How to stop recurring payments through your service provider

The easiest and most direct method to cancel an automatic payment is to contact the service provider directly. Some subscriptions make it easier to cancel than others, but each one should have an option.

You can stop automatic payments either online, through call-in customer service, or by visiting a location.

Customer service

If it’s difficult to cancel your subscription online, look for a customer service phone number or email on the provider’s website. Alternatively, some companies use chatbots that allow you to perform account actions, like canceling payments, yourself.

Navigate to the chatbot on the website and clearly state that you want to cancel your account. You may need to log in to your user account on the website for the chatbot to execute a cancellation.

In-person visit

To cancel some subscriptions, you may need to visit a physical location . This is more likely when you’re using a local service provider, such as lawn care or pest control. Small businesses may have resource or technological limitations that require in-person visits, and they’ll likely be happy to help you.

2. How to cancel subscriptions on PayPal

PayPal helps you centralize your finances and manage your payments in one place. However, only payments and subscriptions set up through PayPal can be cancelled through the platform.

Additionally, canceling a payment method through PayPal stops future charges to your PayPal account, but this action typically does not cancel the underlying subscription or contract with the service provider. It is often recommended to contact the merchant directly to formally close the account or service to avoid potential outstanding balances or service interruptions.

Here’s how to cancel a payment using the PayPal app:

1. Tap Menu.
2. Tap Subscriptions or Linked Businesses.
3. Tap the merchant to view or update.
4. Tap Account.
5. Tap Unlink to remove PayPal as your payment method.
6. Tap Unlink to confirm the cancellation.

Here’s how to find your automatic payments on the PayPal website:

1. Go to Settings.
2. Click Payments.
3. Select Automatic payments.
4. Select the merchant.

From there, you can cancel payments or manage payment methods.

3. How to cancel recurring payments on a debit or credit card

If your attempts to contact a service provider directly fail, then you can contact your card issuer directly. Both banks and credit card lenders allow you to file disputes or cancel future payments.

Keep in mind that most institutions require you to attempt to resolve issues directly with a merchant. They may only step in if you can prove that you’ve made this attempt.

4. How to stop automatic payments from a bank account

If you’ve authorized bill payments via direct ACH transfer from your bank account, you may need to contact your bank to cancel them. It’s a good idea to notify your service provider and attempt to resolve it with them directly first.

Then, if the service provider is unresponsive or makes canceling difficult, you can ask for a stop payment order from your financial institution. You can typically do this by logging into your bank account online, calling customer service, or visiting a branch.

Tips for monitoring your payments

Managing subscriptions that require manual renewal or are billed directly via email involves careful organization and timely reminders.

To ensure manual or email subscriptions don’t slip through the cracks:

• Maintain detailed records of each one’s start date, renewal date, cost, and payment method.
• Use a digital calendar to pencil in reminders a few days before renewal dates. This prompts a review of whether to cancel the service while ensuring payments are made on time.
• Build a personal budget with an allowance for subscriptions and services. Keep track of the total amount that you spend.

Learn about managing funds with PayPal.