Automatic payments authorization - What you need to know
Are you worried about the automatic payments and how to stop a future payment if you’ve opted for it? Do you think it is difficult?
Well, it is not.
You can opt for automatic payment, but before opting for it, gather enough knowledge about it. It will help you make the right decisions.Here is a brief discussion about automatic payments authorization or ACH (Automated Clearing House) authorization - How you can revoke it.
How to stop future payments you’ve opted for
Do not worry if you’ve opted for automatic payments but want to stop a future payment.
Here’s what you need to do:
1 Inform your bank for revoking ACH authorization
Just write to the bank or the credit union that you want to revoke the authorization and stop the organization from taking automatic payments out of your account.
You may get an online form of the bank or the credit union, which you need to fill out to start this process.
2 Write to the company as well
Send a certified mail to the company telling that you are taking away the permission for automatic payments once given. This is what you call to revoke the ACH authorization.
3 Inform the bank to stop automatic payments
You may not have to opt for revoking the authorization. You can just ask the company to stop automatic payments charged by a company. This is what you call to stop payment order.
However, you have to follow certain tips to do so.
Top stop future payments, you have to send the stop payment order in writing and have to inform them at least 14 days before the scheduled payment date.
To stop the next scheduled payment on your debit card, you have to tell the bank at least 3 days before the scheduled date of payment.
You can inform them over the phone, in writing, or in person by visiting the bank.
It is advisable that you monitor the accounts periodically. Once you notice a payment that you didn’t authorize, or a payment is done after you opted for ‘revoke authorization’ or ‘stop payment order’, you should notify the bank without delay.
So, you know what to do stop future payments.
But, you should be careful while opting for and stopping automatic payments.
4 Tips to stop automatic future payments you’ve opted for
Here are 4 tips to follow:
1 Know how you’re protected
An organization can’t pressurize you to opt for automatic payments to pay back a loan unless the loan is an overdraft line of credit.
2 Verify the details of the organization
Before you opt for automatic debit from your bank account, verify whether or not the company is credible and legitimate. Opt for a different payment method if you are not sure about the credibility of the organization.
If you are not sure, do not give out your debit card details. You can write a check every month or opt for an online transfer.
3 Review the terms of your automatic agreement
You need to have a copy of the terms and conditions of your payment authorization agreement.
Read the document carefully to know when and how often the company will take out money from your account.
4 Be careful that there are sufficient funds
It is true that automatic payments help to avoid late fees if you forget to pay the bills. However, you should have sufficient fund in your account.
So, check your bank account details before the due date of the automatic payments.
Now that you know about automatic payments authorization or how to revoke an ACH authorization, verify the company before opting for it and read the documents carefully.
It will help you to avoid a late payment and manage your finances efficiently.