How to cancel a pre-authorized debit in Canada, and get money back
Gyms, phone plans, insurance, streaming, lenders: a lot of Canadian money leaves by pre-authorized debit, and a PAD keeps working long after you have stopped thinking about it. The rules give you real protection, but they run on a clock. Here is how to cancel properly, what to do when a debit should not have happened, and a calculator for your deadline.
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PAD 90-day deadline calculator
When is your last day to ask for it back?
Counts 90 calendar days from the date the money came out of your account, the window FCAC describes for reporting a debit and asking for your money back. Your agreement or your bank may describe the timing in more detail, so act well before day 90. The NSF line is a reminder that FCAC says you can ask your bank to reverse extra charges caused by an unauthorized debit; this calculator does not add the fee amount.
What a pre-authorized debit is
A PAD lets a biller pull money from your bank account when a payment is due. You give permission by signing a PAD agreement, in writing, online or by phone. FCAC lists mortgage payments, utilities, RRSP contributions, insurance premiums and credit card payments as common examples.
The agreement matters because your rights flow from it. FCAC says it should state:
- The amount, fixed or variable. If it is variable, the biller must give you written notice of the amount at least 10 days before taking it, unless you agreed to waive or shorten that.
- The frequency, such as monthly or yearly. If the frequency is undefined or variable, the biller needs your approval for each debit.
- A written confirmation if you set it up electronically or by phone, sent at least 3 days before the first withdrawal.
An automatic payment is different. You set it up yourself in online banking and can change or cancel it at any time without asking the biller. A PAD is controlled by the biller, which is why cancelling one takes an extra step.
How to cancel a pre-authorized debit
- Read your agreement. It should explain how to cancel and how much notice the biller needs.
- Notify the biller in writing. FCAC says written notice is required. Email or the biller's online form usually works if the agreement allows it. Keep a copy with the date.
- Arrange another way to pay anything you still owe. FCAC is clear that cancelling the PAD does not cancel your contract or the amount you owe; it only changes how you pay.
- Watch your account. Check that the debits stop. If they continue, contact the biller. If you are not satisfied with their answer, you have 90 days to seek reimbursement through your financial institution.
Cancelling a service and cancelling the PAD are two separate things. If you want the service gone too, cancel the contract under its own terms. Our guide to cancelling forgotten subscriptions covers finding them in the first place.
Stop payments: the bank-side option
If you need to block a single payment, you can ask your financial institution for a stop payment. FCAC says you may also be able to stop recurring payments this way. Ask your bank how much time it needs to process the request, and whether it charges a fee. A stop payment does not end your agreement with the biller, so still send the written cancellation.
Getting money back from a PAD
FCAC says you have a right to get your money back if:
- the debit was made on the wrong date or for the wrong amount, or
- the contract was cancelled, or the debit was one you did not approve.
The steps:
- Ask the biller first for a refund.
- Report it to your bank within 90 calendar days of the date the money came out, and ask for your money back. You will need to sign a declaration confirming the reason for reversing the debit.
- Ask for knock-on charges to be reversed. FCAC gives the example of an unauthorized PAD causing another payment to bounce for non-sufficient funds. See our NSF fee guide for the current fee rules.
- Complain if needed. Every federally regulated financial institution must have a complaint-handling procedure.
One exception: FCAC says you may not be able to recover a PAD that moved money from your account at one financial institution to your own account at another. For card charges rather than PADs, see what to do about an unauthorized transaction.
Worked example: the gym that kept billing
Noor cancelled her gym membership in writing in August and kept the email. On September 1, a $64.99 PAD still came out, and it pushed her account short, so a rent payment bounced.
- She contacts the gym with a copy of her cancellation. They do not respond.
- Day 90 counted from September 1 is November 30, 2026. On October 15, she has 46 days left.
- She asks her bank to reverse the $64.99, signs the declaration that the contract was cancelled, and asks the bank to reverse the NSF charge the debit caused.
- The October 1 debit, if one comes, has its own 90-day window ending December 30.
If Noor had noticed only in January, the September debit would be past 90 days and her bank would not have to reimburse it. That is why checking statements every month pays off.
A cancellation note you can adapt
Subject: Cancel pre-authorized debit, account [number]
Please cancel the pre-authorized debit agreement on my account [number], effective immediately. Do not withdraw any further payments from my bank account. I will arrange another way to pay any amount I still owe. Please confirm in writing.
[Name], [date]
Keep the sent message or a copy of the letter. If debits continue, it is your proof.
Options people compare
| Option | What it does | Watch for |
|---|---|---|
| Written cancellation to the biller | Ends the PAD agreement | Notice period in your agreement; you still owe what is due |
| Stop payment at your bank | Blocks a payment from leaving | Processing time and any fee |
| Reimbursement claim at your bank | Gets back a debit that should not have happened | 90 calendar days; signed declaration |
| Switch to an automatic payment | You control the date and amount | Remember to pay on time |
These are options to understand, not recommendations. If you are moving banks, our guide to closing a bank account shows how to move PADs before you close. More tools are on the tools page.
How to cancel a pre-authorized debit in Canada
- Find your PAD agreement and check how to cancel and how much notice is needed.
- Send the biller a written cancellation and keep a dated copy.
- Arrange another way to pay anything you still owe.
- Check your account to confirm the debits have stopped.
- If a debit still comes out, contact the biller, then ask your bank for reimbursement within 90 calendar days.
- Sign the declaration, and ask the bank to reverse any NSF or other charges the debit caused.
Questions people ask
How do I cancel a pre-authorized debit in Canada?
Notify the biller in writing and keep a copy, following the cancellation details in your agreement. Then check your account to confirm the debits stop.
Can my bank cancel a pre-authorized debit for me?
You can ask your bank for a stop payment on a single payment, and sometimes on recurring payments. The PAD agreement itself is cancelled with the biller, in writing.
How long do I have to dispute a pre-authorized debit?
Usually 90 calendar days from the date the money came out of your account. After 90 days, your financial institution does not have to reimburse you.
When do I have the right to get a PAD refunded?
FCAC says you have a right to your money back if the debit was made on the wrong date or for the wrong amount, or if the contract was cancelled. This also covers debits you did not approve.
Does cancelling a PAD cancel what I owe?
No. Cancelling the PAD only changes how you pay. You still owe any amount due under your contract and must arrange another way to pay.
Does a biller have to tell me before a variable PAD amount?
Yes. FCAC says the biller must give you written notice of a variable amount at least 10 days before the withdrawal, unless you agreed to waive or shorten that period.
Can I get NSF fees back if an unauthorized PAD caused them?
FCAC says to ask your financial institution to reverse additional charges caused by an unauthorized debit, such as an NSF fee from another payment that bounced.
Looni scans your transactions for recurring debits, shows each one with proof, and starts a countdown so a disputed charge never slips past day 90. Read-only, no advice.
Sources
Financial Consumer Agency of Canada, Pre-authorized debits (PAD) (written cancellation to the biller, cancelling does not cancel what you owe, 10-day notice for variable amounts, 3-day written confirmation, stop payments, 90 calendar days to report and ask for money back, signed declaration, reversal of extra charges, exception for transfers between your own accounts, complaints), and File a complaint with your financial institution. The example and dates are illustrative; day counts are our arithmetic.
Moving all your debits to a new bank at once? Use the bank switching checklist so nothing bounces.