You can usually do this electronically through online banking. You may modify or cancel it yourself at any time. You set up the automatic payment independently of the biller. Instead, you arrange a payment or series of recurring payments from your account to the biller. Difference between pre-authorized debits and automatic paymentsĪn automatic payment doesn’t give the biller permission to withdraw money from your account. You may also be able to put a stop payment on recurring payments.Ĭheck with your financial institution how much time it needs to process a stop payment. If you need to cancel a single payment, you can request a “stop payment” from your financial institution. You’ll need to make arrangements with the biller to pay any amounts you owe. By cancelling your pre-authorized debit agreement, you’re simply telling the biller that you wish to change your payment method. If you’re not satisfied with their response, you have 90 days to seek reimbursement through your financial institution.Ĭancelling your pre-authorized debit agreement doesn’t cancel your contract with the biller. Once you cancel the agreement, check your account records to confirm that the pre-authorized debits stop. Your agreement should have details on how to cancel a pre-authorized debit. Make sure you keep a copy of this notice. To cancel a pre-authorized debit agreement, you must notify the biller in writing. Cancelling a pre-authorized debit agreement You may need to give the biller a password or a secret code to approve the pre-authorized debit. your agreement doesn’t define the frequency.The biller must get your approval for each pre-authorized debit if one of the following occurs: variable, that is, only when you're billed if you make a purchase.fixed at weekly, monthly, semi-annually or annually.The frequency is how often the biller will take the money out of your account. Your pre-authorized debit agreement should include the frequency of the pre-authorized debit. If the amount is variable, the biller must give you written notice of the amount at least 10 days before they withdraw the funds, unless you agree to waive or shorten this period. variable, that is, a different amount every month.fixed, that is, the same amount every month.Your pre-authorized debit agreement should include the amount of the pre-authorized debit. To protect yourself against fraud, be sure to write “VOID” in ink across the front of the cheque. Your financial institution may ask you to provide a blank cheque. You must provide your banking information as part of the pre-authorized debit agreement. It must be sent at least 3 days before the first withdrawal from your account and include the details of the agreement. If you set up your agreement electronically or over the telephone, the bank should send you a written confirmation. Depending on the financial institution, you may be able to do this in writing, electronically or over the telephone. You need to fill out a pre-authorized debit agreement in which you give permission for the withdrawals. Setting up a pre-authorized debit agreement Pre-authorized debits may be useful when you want to make payments from your account on a regular basis.įor example, you may want to use pre-authorized debit for the following: A pre-authorized debit allows the biller to withdraw money from your bank account when a payment is due.
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