How to cancel a pre-authorized payment in Canada
Short answer: a pre-authorized payment (or pre-authorized debit, PAD) is cancelled with the company that takes the money, not with your bank. Tell the biller in writing that you're revoking your PAD agreement and keep a copy. Under Payments Canada's Rule H1, the biller must stop issuing new debits within 30 calendar days of your notice. A stop payment at your bank only blocks an upcoming debit, usually for a fee. If a debit comes out after you cancelled, you generally have 90 calendar days to ask your bank for your money back.
First: is it a pre-authorized debit or a card charge?
| What you see | What it is | Who stops it |
|---|---|---|
| A withdrawal from your chequing or savings account that the company starts (phone bill, insurance, gym, utilities) | Pre-authorized debit (PAD), covered by Payments Canada Rule H1 | The biller (cancel), and your bank (stop payment, refund claim) |
| A recurring charge on your credit card (streaming, apps, software) | A card payment, not a PAD | The merchant. For disputes, your card issuer |
| A payment you scheduled in online banking | An automatic payment you control | You, in your online banking's scheduled payments |
The Financial Consumer Agency of Canada explains the difference: with a PAD, the biller withdraws money from your account; with an automatic payment, you send money yourself (FCAC). Banks' stop-payment tools don't cover credit card charges: RBC says a stop payment can't be used "for pre-authorized charges to your credit card" and that you should contact the merchant (RBC).
Your rights under Rule H1 (what the rule actually says)
Payments Canada's Rule H1 governs PADs. Checked October 28, 2026:
- You can revoke at any time. Every PAD agreement must say that you may revoke your authorization at any time, subject to a notice period that "must not exceed 30 calendar days".
- The biller has 30 days to stop. Once you instruct the biller to stop (in writing, or orally with proper authorization), it must use best efforts to cancel in the next billing cycle, and within no more than 30 calendar days stop issuing new PADs against you (section 30).
- A sample cancellation form exists. It's in Appendix VI of Rule H1. You can use it, but you don't have to (Payments Canada).
- 90 days to claim a refund. For a personal PAD, you can claim reimbursement from your financial institution up to 90 calendar days after the debit. The debit must not follow your agreement, have been taken after you revoked it, or lack a required notice. Your institution must, on a best-efforts basis, reimburse you immediately (section 24). Expect to sign a declaration (FCAC).
- Variable amounts need notice. If the amount can change, the biller must give you written notice at least 10 days before the withdrawal, unless you waived or shortened that notice (FCAC).
- Cancelling the PAD doesn't cancel the contract. You still owe what you owe, and you'll need another way to pay. To end the service itself, cancel the contract with the company too.
Business PADs have a much shorter window (10 business days). This guide covers personal accounts.
Step 1: find every pre-authorized payment
PADs are easy to forget: you set them up once with the biller, and the biller (not you) starts each withdrawal.
Two ways to find them:
- Read 12–13 months of your chequing statement and look for the same company debiting you at regular intervals.
- Import the statement into Subloupe. Download a CSV, OFX or QFX file from your online banking. Subloupe reads it in your browser (nothing is uploaded) and lists the recurring charges with what each costs per year. Charges seen only once in the period are labelled as such.
Step 2: cancel with the biller (in writing)
Follow the cancellation steps in your PAD agreement if it has them. If not, send a written notice and keep a copy. A short message works:
Subject: Revocation of pre-authorized debit agreement
I am revoking my authorization for pre-authorized debits from my account [last 4 digits / bank name] for [service / customer number], effective immediately. Please stop all future debits and confirm in writing. This is in accordance with my PAD agreement and Payments Canada Rule H1.
[Name, address, date]
Then check your next statements to confirm the debits stopped.
Step 3 (optional): stop the next debit at your bank
A stop payment is useful if the next debit is close and the biller hasn't stopped yet. It's a best-effort block, usually paid, and it does not cancel your agreement. Fees and steps below are from each bank's own pages, checked October 28, 2026.
| Bank | How to stop a PAD (official page) | Fee and good to know |
|---|---|---|
| Desjardins | AccèsD in a browser: Plus d'options → Annuler une opération. In the app: Plus → Annuler une opération. Then choose the transaction type (FAQ, in French) | "Fees apply" (amount not stated in the terms). Desjardins suggests asking the supplier to stop first to avoid the fee. A stop takes effect the same day at 3 p.m., or the next business day, and lasts 372 days. For a payment already taken (within 62 days), Desjardins claims it from the supplier but can't guarantee a refund. Loan payments to Desjardins can't be stopped (AccèsD terms, in French) |
| RBC | Online Banking: select the account → Transfers and Payments → Stop a Cheque or Pre-Authorized Payment (RBC) | $12.50 online, $25 at a branch or by phone (may be included in some accounts). Not guaranteed. To stop the whole series, RBC says to talk to the merchant. 1-800-769-2511 |
| TD | EasyWeb: Pay Bills → Make a Stop Payment. To stop it permanently, contact the company (TD help) | A fee applies per request (amount in TD's fee guide; not checked here). PAD stops stay active 12 months + 1 day. Not available 12–5 a.m. ET (EasyWeb help) |
| BMO | BMO's FAQ: "please contact the company with whom you've set up the payment arrangement directly" (BMO FAQ) | We couldn't confirm a BMO online stop-payment path or fee on an official page. Call BMO or visit a branch to ask |
| Scotiabank | Online: chequing account → Account details → Additional Services → Request to stop a payment → PAD (Scotiabank help) | $12.50 with complete details, $20 if incomplete, charged even if the stop fails. Stop the next payment, the next 6 months, or everything from that merchant for 3 months. Place it 24–48 business hours ahead. Online requests need a debit from that merchant in the past 3 months (Scotiabank) |
| CIBC | Online Banking: Customer Services → Stop payments. Mobile: More → Customer Services → Bank accounts → Stop payments (CIBC help) | Before 6 p.m. ET, at least 1 business day before the due date; stops the next PAD in a series; in effect 12 months. $12.50 with full details, $20 without; $15 and $25 from January 16, 2027. Doesn't cover recurring payments set up with your CIBC debit card details: contact the merchant (CIBC fees) |
| National Bank | Online banking in a browser: select the account → Modifier ou supprimer une transaction à venir → Un débit préautorisé (not available in the mobile app) (BNC, in French) | $16 to $30 may apply. Doesn't end your contract. You can't stop debits from National Bank or its subsidiaries: call 1 888 835-6281 |
Menu names change. If a step doesn't match what you see, search your bank's help centre for "stop payment".
Step 4: if money still comes out
- Contact the biller and ask for the money back, with a copy of your cancellation notice.
- If that fails, ask your bank for a PAD reimbursement claim within 90 calendar days of the debit (Rule H1, section 24). Mention that the agreement was revoked or that the debit didn't follow it.
- If the debit caused other fees (for example, another payment bounced), ask your bank to reverse them too (FCAC).
- Still stuck? You can file a complaint with your bank.
FAQ
Can my bank cancel my PAD agreement for me? A stop payment only blocks debits. The agreement is between you and the biller, so cancel it with them. BMO, for example, tells customers to contact the company directly.
How long does the biller have to stop? No more than 30 calendar days from your notice under Rule H1 (sooner if your agreement says so).
Does cancelling the PAD cancel my phone, insurance or gym contract? No. Cancelling the PAD only changes how you pay. End the contract separately and pay anything you still owe. For Vidéotron, see how to cancel Vidéotron (in French).
What about subscriptions on my credit card? They aren't PADs. Cancel with the merchant, using our guides for Netflix, Spotify, Disney+ and Crave, and contact your card issuer if you're still charged.
Find every pre-authorized payment you're still paying
Import a chequing or credit card statement (CSV, OFX or QFX) into Subloupe. It lists the recurring charges it finds, possibly forgotten ones first, with what each costs per year. The file is read in your browser and never uploaded. Import and detection are free. No account, no bank login.
Subloupe isn't affiliated with Payments Canada or any bank named here. This is general information, not legal advice. Fees and steps change, so always check your bank's official page. Facts checked October 28, 2026.