Can I cancel a credit card payment?
Written by
Emily Tye
Reviewed by
Amy LancashireYes, sometimes, but it depends on the type of payment. You can usually stop a recurring payment or subscription before it's taken, and you can often cancel or change a payment you've set up towards your own card bill. What you generally can't do is undo a one-off purchase once you've approved it, though you may be able to get the money back another way.
The right first step depends on which of these three situations you're in. Here's how to tell them apart, and what to do in each.
What type of payment are you trying to cancel?
A recurring payment or subscription coming out of your card, like a gym membership, streaming service or insurance. You have a clear right to stop these.
A payment you've already made to a shop or company, for goods or services. You usually can't cancel it, but you may be able to claim the money back.
A payment towards your own credit card bill, like a one-off payment or a direct debit you set up to clear the balance. You can normally cancel or change this before it's processed.
How do I stop a recurring payment on my card?
A recurring card payment is called a continuous payment authority (CPA). It's when you give a company your card details and permission to take payments as they fall due. It's different from a direct debit, where the money leaves your bank account and you're covered by the Direct Debit Guarantee. With a CPA, the company takes the money from your card.
You have the right to cancel a CPA at any time. Under the Payment Services Regulations 2017, you can withdraw your consent to a series of payments, and once you do, future payments are no longer authorised.
How do I cancel the payment?
You have two options, and you can use either:
Tell the company taking the payment that you want to stop it. This is often the tidiest route.
Tell your card provider. Your provider must stop the payments once you ask, and they can't insist you contact the company first, as the FCA confirms. However, you should let the business know before cancelling when possible.
To be safe, ask by the end of the business day before the next payment is due. Cancel any later than that and the next payment can still go through.
What if money is still taken after I cancel?
If a payment leaves your account after you've told your provider to stop it, that payment isn't authorised. Your provider has to refund it, along with any interest or charges it caused. If they won't, you can complain, and if you're not happy with their answer you can take it to the Financial Ombudsman Service.
Does cancelling the payment also cancel the contract?
No, and this is the part people can get caught out by. Stopping the payment doesn't end the agreement behind it. If you're partway through a fixed-term contract, like a 12-month membership, you can still owe the money even after the payments stop. Sort out the contract with the company at the same time, so you're not left with an unexpected bill or a mark on your credit file.
Can I cancel a payment I've already made?
Once you've approved a one-off purchase, you usually can't cancel it. The rules that let you stop future recurring payments don't apply to a normal purchase in a shop or online.
If a payment is still showing as "pending", it hasn't fully cleared, but that doesn't mean your provider can pull it back. In most cases you'll need to wait for it to go through, then ask the company for a refund or raise a dispute.
If something has gone wrong, for example the goods never arrived, the company has closed down, or the item isn't as described, you have two possible routes to get your money back:
Chargeback. This is a process run by the card networks (such as Visa, Mastercard and American Express), not a legal right. Your provider asks for the payment to be reversed. It can apply to most card payments, but there's a time limit: you usually need to claim within 120 days of the transaction, though for something you're due to get in the future, like event tickets, the 120 days runs from when it should have happened.
Section 75. For credit card purchases costing over £100 and up to £30,000, Section 75 of the Consumer Credit Act 1974 makes your card provider jointly responsible with the retailer if something goes wrong. It's a legal right, and you can usually claim for up to six years (five years in Scotland).
The two can overlap, and you don't always have to choose. Section 75 is a legal right, so it tends to be the stronger option for qualifying credit card purchases over £100. Chargeback is a card scheme process rather than a legal right, so the seller can challenge it, but it's worth using where Section 75 doesn't apply, such as smaller purchases or debit card payments. If your provider turns you down either way, you can take the complaint to the Financial Ombudsman.
Can I cancel a payment to my own credit card bill?
Yes, usually, as long as you're in time. If you've set up a one-off or scheduled payment towards your card through online or mobile banking, you can normally cancel or change it up to a cut-off point. Check your banking app for the exact deadline, as it varies between providers.
If you pay your card by direct debit, you can cancel that through your bank. Just think it through first. If you cancel and don't make at least the minimum payment another way, you could miss a payment. A missed payment can lead to a fee, extra interest and a mark that stays on your credit report for six years. Cancelling a direct debit doesn't harm your credit score by itself, but a missed payment does.
There's more on this in our guide to whether cancelling a direct debit affects your credit score.
What if the payment was fraudulent or unauthorised?
Not sure what the charge is in the first place? Here's how to work out what a charge on your card is.
If you spot a payment you didn't make or approve, treat it as fraud rather than a cancellation. Contact your card provider straight away. They must investigate payments you didn't authorise, and refund you where the payment was genuinely unauthorised. Check your credit card statement regularly so you catch anything unfamiliar early.
Read more about credit card fraud in our guide.
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There are a range of financial products available that may suit your needs. We encourage you to research your options carefully and consider seeking independent financial advice before making any decisions. This blog is for informational purposes only and does not constitute financial advice.
