Check what kind of automatic payment you have
| Your payment setup | Where to act |
|---|---|
| A company pulls money from your deposit account under a PAD agreement | Cancel with the biller in writing; ask your bank about an urgent stop if needed. |
| You scheduled a bill payment yourself in online banking | Change the scheduled payment in online banking or ask your institution. |
| A company charges your credit card repeatedly | Contact the merchant about the recurring charge; ask the card issuer about a disputed card charge. PAD reimbursement rules below do not govern credit-card transactions. |
FCAC distinguishes a biller-initiated PAD from a payment you schedule yourself. It also directs people with recurring credit-card payments to contact the company. If the transaction label does not tell you which one you have, ask your institution before choosing a route. FCAC: PADs and automatic payments · FCAC: recurring card payments
Cancel the PAD with a written notice
Find your PAD agreement in your records or the biller's portal. Follow its cancellation method and send a written notice through a verified contact channel. Keep the notice, proof of delivery and the biller's reply. FCAC requires written notice to the biller; Payments Canada says the agreement should explain how to cancel and offers an optional sample form. FCAC · Payments Canada
Copy and adapt this notice:
Subject: Cancel my pre-authorized debit agreement
Hello [biller name],
I am cancelling the PAD agreement for [service or account reference] effective [date]. Please stop future debits under this authorization. My next scheduled debit, if known, is [date]. Please confirm receipt, the effective cancellation date and whether that next debit is already being processed.
Please tell me any remaining balance and how I can pay it another way.
[Your name] · [date] · [reply contact method]
Use a verified biller channel and ask what reference it needs to identify the PAD agreement. Do not send credentials or unnecessary full bank-account details through an unverified channel. Payments Canada says the biller must cancel the PAD agreement within 30 days of notice. That does not guarantee a debit already being processed will be stopped, so ask specifically about the next withdrawal. Payments Canada: cancellation
If the withdrawal is close, ask your bank about a stop
FCAC says you can request a stop payment for one debit and may be able to stop recurring debits. Ask your bank or credit union how much time it needs; sending the biller a cancellation notice remains a separate step. FCAC: stop payments
Give the institution the biller name, expected amount and date. Ask: Can you still stop this withdrawal? Does the stop cover one debit or future ones? What must match the request, is there a fee, and how will I confirm it took effect? Save the reference number. If the debit has posted, ask about the claim route below instead of assuming a stop will reverse it.
Do not use an empty balance to try to stop a PAD. The payment may be returned while the bill remains due and fees may follow. If that happened, Romii's NSF guide covers the returned-payment question.
If a debit already posted, check the reason before claiming
Compare the posted date, amount and biller with your agreement and cancellation record. Did you never authorize this PAD, did it differ from the agreement, or was it taken after you followed the cancellation procedure? Contact the biller about the mismatch; contact your institution immediately if the entry looks suspicious. Keep the statement, agreement and notice. FCAC: incorrect or unauthorized PADs
For a personal PAD, Payments Canada describes a 90-calendar-day window from the withdrawal to claim reimbursement through your institution when the PAD did not follow the agreement, the agreement had been cancelled, or required notice was missing. FCAC says the institution will ask for a declaration explaining the claim. Tell it the posted date and the specific problem, and ask for its PAD claim process promptly, even if you are waiting for the biller. A valid claim reason and PAD category matter; this is not a general refund for an authorized bill. Payments Canada: recourse · FCAC: PAD problems
If the institution does not resolve the claim, request its complaint process. FCAC says federally regulated financial institutions must have one. A PAD reimbursement claim does not settle whether the underlying bill is valid. FCAC: PAD complaints
Confirm the bill and the next account record
Cancelling the PAD only changes the payment method. Ask the biller what remains due, when it is due and which other payment methods it accepts. If you also want to end a gym membership, insurance policy, utility service or other contract, follow that service agreement's separate cancellation terms. FCAC · Payments Canada
Then check three results: the biller confirmed the cancellation date; the next bank statement shows whether withdrawals stopped; and you have a way to pay any valid remaining bill. If you are choosing how to handle future bills, compare automatic payments and reminders after this PAD is resolved.