Cancel a Credit Card Payment

There are several situations that may require you to cancel a credit card or debit card payment. If you pay for damaged or defective goods with a credit card, you may need to cancel the payment. There is a process to cancel automatic or recurring credit card payments. Debit card payments, however, are more difficult to cancel. Make sure that you carefully document any canceled payments and keep good records.

Steps

Canceling A Payment Due To Defective Goods

  1. Understand the Fair Credit Billing Act (FCBA). The FCBA provides legal protections when you make credit card purchases. This act protects the cardholder if the goods or services purchased are of poor quality. Under certain conditions, you can withhold payment for the purchase. Your credit card company will investigate the matter while the payment is withheld.[1]
  2. Meet the FCBA guidelines. The FCBA has several criteria that must be met before a credit card payment can be withheld. The purchase must be for $50 or more. The merchant must operate in your state or within 100 miles of your home. You must also make a good faith effort to correct the problem with the merchant.
  3. Contact the merchant. There are several sources you can check to find out about the merchant's returns and refund process. Start by calling the location or the accessing website where you made the purchase. Have your receipt and credit card information when you call.
    • Explain that you want to return items and obtain a refund. Ask the merchant how that process works. Note that some merchants may have restocking charges that might apply. Be sure to understand circumstances in which this charge applies.
    • If you purchased physical merchandise, you will probably have to return it before the merchant will give you a refund. Make sure that you're clear about how to return the items.
    • When you return the purchased goods, keep some type of documentation. If you visit the store, ask for a returned merchandise form. Keep the shipping receipt, if you ship items back. In some cases, the merchant may pay the shipping costs.
    • A merchant should promptly refund your money once they receive the items you purchased. Ask for documentation of the credit card refund. In many cases, the refund information can be emailed to you.
    • Use the merchant's refund information to verify that the dollars were credited back to your credit card account. Check your card account online, or review the next statement to confirm the credit.
  4. Call your credit card company. If the merchant is not willing to refund your purchase, contact your credit card company. Since this issue is more complex, call the company rather than trying to work through the website. Locate the card company's customer service number. You'll find it on the back of your credit card, or on your card statement.[2]
    • The company's automated phone line will take you through a series of prompts. Have your credit card and information about the purchase with you when you call.
    • Your account may have a password and user ID associated with your card. Enter that information when you're prompted.
    • You may be asked several security questions, so that the associate on the line can identify you. Answer those questions, based on the answers you provided when you set up your account.
    • Provide the vendor name, date, dollar amount, and the item purchased. Explain that you asked the merchant for a refund, but they declined. Ask your card company if they can withhold payment and investigate the matter.
    • If the credit card company withholds the payment, ask them to email you documentation.
  5. Get information about the credit card company's investigation. Whether the payment can be withheld or not, make sure that you understand the card company's process for investigating the issue. Ask your card company if you need to file a formal written complaint regarding the merchant.[3]
    • Confirm how long it will take for the card company to investigate your complaint.
    • Ask the card company if your account includes any extended warranty coverage for damaged or defective merchandise. If the merchant does not refund your money, you may be able to recover your funds through a warranty.
    • Keep all related documentation.

Stopping a Recurring Credit Card Payment

  1. Locate the recurring credit card payment you want to cancel. Say, for example, that you want to cancel a monthly subscription to a premium online music service. Verify the company name and how often you are charged (monthly, in this case). Confirm the date that the charge is posted to your account each month
  2. Sign into your account on the vendor's website. In this example, you would access the online music service website. Enter your username and password. See if the site offers an automated option to cancel a recurring payment.
    • Select the recurring payment that you want to cancel, if an automated system is available. Cancel the payment.
    • Note that date of the last payment charge to your credit card. You'll need to use that date to verify that no charges are posted after that point in time.
    • Keep documentation on the cancellation.
    • Check your future credit card statements to confirm that no charges are posted after the final charge date provided by the vendor.
  3. Call the vendor, if the company does not offer an automated option to cancel your recurring payment. Have your account number, charge amount, and the date of the charge with you when you call. Ask the customer service person to email you confirmation that the recurring charge will be cancelled.[4]
    • Confirm the date of the final charge to your account. Keep the documentation on file.
    • Use these records to check your credit card statements to ensure that the charges have stopped.
    • If the vendor refuses to cancel the recurring payment, consider contacting your state Attorney General or the Better Business Bureau.

Working With Debit Card Purchases

  1. Understand your debit card transactions. Debit cards are designed to automatically deduct funds from your checking or savings account when you make a purchase. Improvements in technology now allow banks to process debit card transactions quickly. Once you purchase an item using your debit card, there is not much time to cancel a payment. Debit card transactions do not have the same legal protections for damaged goods or faulty service.[5]
  2. Contact your financial institution first, if your need to cancel a debit card purchase. Ask them if they can stop the payment. If they can't, contact the merchant. For large purchases, consider using a credit card. Credit cards offer better legal protections, in case you have a problem with a purchase.[6]
  3. Tell the merchant that you want a refund. If you purchased physical goods, ask the merchant how you can return them. Keep the shipping documentation for the return.
    • After you ship the goods, confirm with the merchant that they have received the items.
    • Provide the receipt and your debit card information to the merchant. When the merchant processes the refund, ask them to email you the refund details. Keep the details for your files.
    • Log into your bank account and confirm that the refund amount posted to your account.
    • If the merchant refuses to refund your purchase, contact an attorney. Ask for some legal advice on recovering the funds.

Tips

  • Shoppers are often given the choice of running a debit card transaction as "debit or credit." A cashier may offer this choice when you checkout. If you choose debt, funds are immediately deducted from your account to pay for the purchase. A credit transaction is processed by the credit card company.[7]

Related Articles

Sources and Citations

  1. ↑ https://www.ftc.gov/sites/default/files/fcb.pdf
  2. ↑ http://www.creditcards.com/credit-card-news/dispute-credit-card-product-merchant-1282.php
  3. ↑ http://www.consumer.ftc.gov/articles/0219-disputing-credit-card-charges
  4. ↑ http://www.datamation.com/columns/executive_tech/article.php/3611246/Recurring-Credit-Card-Charges-May-Irk-Consumers.htm
  5. ↑ https://www.fdic.gov/consumers/consumer/news/cnwin1213/stoppayment.html
  6. ↑ http://www.dfi.wa.gov/financial-education/information/debit-cards-frequently-asked-questions
  7. ↑ http://lifehacker.com/when-should-i-use-credit-and-when-should-i-use-debit-wh-862086499
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