How to Cancel a Direct Debit Payment On Your Credit Card

Rates and Fees verified correct on December 22nd, 2014
cancelling direct debt Do you know what to write? Learn the basics of what to include in your letter for cancelling a direct debit payment on your credit card.

Learn how to cancel a direct debit following this sample letter formula. Understand the details you must include to make sure that the cancellation runs as smoothly as possible.

You don’t have to go into any detail when you want to cancel a direct debit, as the following sample letter will demonstrate. All you need to do is specify the account you are talking about, and the exact payment you require to be cancelled. You do not have to explain why you are cancelling; you chose to set up the direct debit and you can choose to cancel it.

Your letter to the merchant may be a little different, especially if you are attempting to cancel a direct debit in the middle of a contract. In this case, you would be strongly advised to get some legal advice before acting. Cancellation of certain direct debits may constitute a breach of contract on your part and may lead to legal repercussions for you.

It may be possible to cancel a direct debit by only writing to the financial institution and not the merchant, but this should be avoided for two reasons: firstly, it is a simple matter of courtesy to inform a merchant that you are cancelling with them; secondly, prior notification will prevent you receiving query letters from the merchant asking why their direct debit has been returned to them unpaid.

Once you have cancelled your direct debit with both parties, you should ask for confirmation that this has indeed been carried out. It is always a good idea to call back after a few days and ask that your account is checked for the cancellation order.

Sample letter

The following letter is obviously just a guide and you must make sure you insert the relevant details in the appropriate places [in these parentheses]. Make sure you keep a copy of any letters pertaining to financial issues, and always be sure to date your letter, as without a date you have no comeback should your direct debit continue to be paid because you will not be able to prove when you asked for it to be cancelled. Remember that all account holders must sign at the end of the letter.

 

[Your name and address]

[Date]

The Manager,
[Name of bank, building society or credit union]
[Name of branch]
[Address]

My/Our account name: [ ]
Credit Card Account No: [ ]

Dear Manager,

RE: CANCELLATION OF DIRECT DEBIT

I/We advise you that I/we have cancelled the direct debit authority previously given to [name of merchant] from my/our credit card account with immediate effect. I am enclosing a copy of the letter I/we have sent to the merchant.

Yours faithfully,

[Signature]

[Name]


Click here to download this as a Word document to edit directly. To save it to your hard drive, right click and choose “Save As”. Navigate to the folder you wish to save it to and click OK.

Was this content helpful to you? No  Yes

This page was last modified on 4 October 2013 at 23:24.

Ask a Question

Disclaimer: At finder.com.au we provide factual information and general advice. Before you make any decision about a product read the Product Disclosure Statement and consider your own circumstances to decide whether it is appropriate for you.
Rates and fees mentioned in comments are correct at the time of publication.
By submitting this question you agree to receive follow up emails related to finder.com.au and to create a user account where further replies to your questions will be sent.

2 Responses to How to Cancel a Direct Debit Payment On Your Credit Card

  1. Default Gravatar
    Kgauhelo | July 19, 2013

    How must I write the letter to inform my insurance provider not to debit my account for six months, but not to be cancelled due to my contract ending as a temporary employee?

    • Staff
      Jacob | July 19, 2013

      Hi Kgauhelo. Thanks for your question. You may need to wait until the time you wish to cancel the direct debit, as the insurance provider may not be able to arrange a future cancellation of direct debit. The best thing to do is to give them a call and find out what their policy is. Otherwise, please use the example on this page to draft a letter to your provider. Jacob.

Related Posts

Credit Cards Comparison

Rates last updated December 22nd, 2014
Interest rate (p.a.) Balance transfer rate (p.a.) Annual fee Cash advance rate (p.a.)
ANZ Low Rate
ANZ Low Rate
A low rate on purchases, balance transfer and a low annual fee. 13.49% p.a. 0% p.a. for 16 months $58 p.a. 21.74% p.a. Go to site More info
Citi Simplicity Card
Citi Simplicity Card
$0 annual fee credit card with a long term balance transfer offer. 19.99% p.a. 0% p.a. for 12 months $0 p.a. 19.99% p.a. Go to site More info
HSBC Platinum Credit Card
HSBC Platinum Credit Card
Earn rewards points plus a balance transfer offer. Access to prestige services including a personal concierge service and VISA Platinum reward program. 19.99% p.a. 0% p.a. for 8 months $0 p.a. 21.99% p.a. Go to site More info
NAB Low Rate Credit Card
NAB Low Rate Credit Card
Low ongoing interest rate on everyday purchases. 0% p.a. for 15 months (reverts to 13.99% p.a.) 4.99% p.a. for 6 months $59 p.a. 21.74% p.a. Go to site More info
Westpac Low Rate Card
Westpac Low Rate Card
A low interest rate credit card with a low annual fee and balance transfer offer. 13.49% p.a. 0% p.a. for 16 months $59 p.a. 21.49% p.a. Go to site More info
American Express Qantas Discovery Card
American Express Qantas Discovery Card
Receive 7500 Qantas Points and pay no annual fee ever. Plus earn 1 Qantas Point per $1 spent on all your everyday purchases. 20.74% p.a. 0.99% p.a. for 6 months with 1% balance transfer fee $0 p.a. Go to site More info
HSBC Platinum Qantas Credit Card
HSBC Platinum Qantas Credit Card
Introductory balance transfer offer and 2 international Qantas Club lounge passes every year. 19.99% p.a. 0% p.a. for 6 months $199 p.a. 21.99% p.a. Go to site More info

* The credit card offers compared on this page are chosen from a range of credit cards CreditCardFinder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing cards.

Ask a question
feedback