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How to cancel a direct debit?

Setting up direct debit payments seems to be easy – you just have to sign a mandate with the organization. Then, for months, you do not have to care about making your payments in time. But what about cancelling these recurring transactions? Read on and find out how to stop direct debits.

Make sure it’s direct debit or recurring payment

Even though both direct debit and recurring payments work on the same principle, these are two different types of transactions. As a result, their cancellation methods are not the same.

In recurring payments, the money is taken from your bank card. In this case, you’d need to contact the merchant for stopping payments and subscriptions. With direct debits, funds are withdrawn from your bank account. That is why you’d need to approach your financial provider for cancellation. 

If you want to learn all about direct debit payments, check our previous article: “What is a direct debit?

How to cancel a direct debit in your mobile banking app

Most banks provide the possibility to cancel direct debit online in mobile apps. For this, you can fill in the form in the app and submit it. Usually, the next details are required:

  • full account name
  • branch identifier code
  • account number
  • merchant name
  • merchant ID
  • lodgement reference number
  • date of the last debit
  • payment amount

On a side note, if you’re looking into opening an account with a reliable modern financial provider and user-oriented mobile app with all the features that you need, check out Genome. We open personal, business, and merchant accounts, as well as provide many more exciting features for smooth financial operations and experience. 

How to cancel a direct debit in the internet bank

If your financial provider offers online services, a direct debit cancellation feature can be also available from a web application of your mobile banking. Just like in a mobile app, you will need to fill in and send a special form.

The other ways to stop such regular transactions are: reaching out to your bank via phone call, by letter, or by visiting a branch. Sending a letter is not the most efficient method to cancel direct debits. Remember that you’ll spend at least a few days until the bank receives and processes the letter. 

Important things to know about cancelling direct debit payments

Remember that cancellation does not happen within one day. Prepare your request beforehand so that you can stop payment before the next due date. If you submit a form too late and the bank cannot process it in time, the transaction will still go through. 

If you’re only cancelling direct debits with your debtor but your contract with this organization remains valid, take care of other ways to pay for the services you’re using. 

What happens if you cancel a direct debit

After receiving your cancellation request, the bank has to send an ADDACS message to a debtor notifying them about changes. The debtor then may contact you to verify the information and discuss other possible options of payments. Both sides should receive and save notifications/emails about stopping direct debit payments. 

How long does it take to cancel a direct debit?

The whole process does not take long and lasts approximately 2-3 business days. However, timing can vary depending on how fast your financial provider and debtor react to messages and adapt changes.

FAQ

Can I cancel a direct debit without telling the company?

Yes, you do not have to notify your merchant or debtor if you’re stopping direct debit transactions with them. You should only submit a request to your bank or financial provider and they’ll send a notice to the organization. If any additional information or clarification is needed, the debtor will contact you. 

How do I stop a direct debit?

You can only do this with the help of your bank/financial providers. The easiest way to submit a cancellation form is from your mobile or web application. You can also visit a bank’s branch, give them a call, and even send a letter. 

Will I get charged if I cancel a direct debit?

If you send your cancellation form in time (before the due date of the next payment), you will not be charged. However, it’s worth double-checking your contact (mandate) with the debtor if there are any fines or additional charges for stopping direct debits. 

Can I ask my bank to stop a direct debit?

Yes, this is the only way to cancel direct debit payments. You can contact them by phone, send a letter, or submit a direct debit cancellation request in a mobile/web application.