In today’s digital-first world, it is increasingly common to sign up for a range of services, like newsletters, streaming platforms, cloud storage, and more, that offer convenience through recurring payments. While these automatic deductions streamline transactions, they can often continue unnoticed long after their utility has faded. Over time, they may quietly affect your monthly budget unless actively managed. To avoid such financial leaks, it is important to understand how to manage and cancel recurring payments effectively. How exactly can you stop recurring payments? Let’s understand the process in detail.
| Table of Contents: |
| What are recurring payments? |
| How do recurring payments work? |
| How to stop recurring payments? |
| Things to keep in mind when setting up automatic payments |
| Bottomline |
What Are Recurring Payments
Recurring pay refers to automatic charges made to your bank account or card at regular intervals. They are set up during the sign-up process for services like gym memberships, software tools, or digital subscriptions. Once approved, these payments continue until you take action to stop them. There are two common types of recurring payments:
Recurring Pay with Cards: Debit or credit card-based automatic pay for services like OTT platforms or food delivery subscriptions.
Bank Mandate-Based Auto-Debits: Often used by telecom, insurance, or loan services with standing instructions through net banking or UPI.
How Do Recurring Payments Work?
Recurring or automatic pay allows businesses to automatically deduct payments from your account either monthly, quarterly, or annually, based on the plan you’ve selected. Before each payment, many companies send you a reminder to review or stop automatic payments if needed, giving you time to do so before the deduction.
In India, recurring payments follow Reserve Bank of India (RBI) guidelines that aim to improve transparency & security. The norms include:
1. One-Time Consent: You must give explicit permission to start a recurring pay setup.
2. Transaction Limits: If a recurring transaction exceeds ₹15,000, additional authentication is needed before it can be processed.
3. Advance Notification: You should receive a pre-debit alert at least 24 hours before each payment is deducted.
4. Card Tokenization: For card-based recurring payments, your actual card number is replaced with a token to protect your data.
How To Stop Recurring Payments?
Once you’ve identified a charge you’d like to discontinue, the next step is to stop automated payments using the method you initially set up. This could be through your bank, a UPI app, or directly on the service provider’s platform. The step-by-step approach in each case is as follows:
A] Using Your Bank or Credit Card Account:
Imagine you’ve subscribed to a fitness app using your credit card, but the app doesn’t offer a clear cancellation option. In this case, your best course is to stop automatic payments directly from your bank. For that,
1. Log in to your bank’s app or internet banking portal.
2. Go to the section labelled e-mandates, auto-debit instructions, or standing instructions.
3. Select the recurring pay instruction you want to disable.
4. Choose the option to cancel, pause, or revoke the instruction.
If you prefer personal support, you can also visit your branch or contact customer service to help you stop automatic payments.
B] Through UPI Apps (Google Pay, PhonePe, Paytm, etc.)
If the recurring pay was set up via a UPI mandate, it can be revoked within the app itself.
1. Open your UPI app and go to the AutoPay, Mandates, or Recurring Payments section.
2. Review the list of active auto-debits.
3. Select the one you want to end and tap on Revoke or Cancel.
4. Authenticate with your UPI PIN if prompted.
This action will cancel recurring payments associated with the UPI instruction, and no future deductions will occur.
C] Via the Merchant’s Platform
Say you’ve signed up for a music streaming service during a free trial and forgot to cancel. In such cases, the simplest way is to stop the payments directly through the service provider’s platform:
1. Log in to the website or app of the service provider.
2. Go to the Billing, Payments, or Subscriptions section.
3. Select the plan you want to cancel.
4. Choose ‘Cancel Subscription’ or ‘Turn off Auto-Renew’.
5. Confirm the cancellation by following the prompts.
Some services may require you to contact customer support to stop automatic payments. So, always review the cancellation confirmation and save any related emails for your records.
Things to Keep in Mind When Setting Up Automatic Payments:
Recurring or automatic pay offers convenience, but it also requires careful attention to avoid surprises later. Here are a few things to remember when you choose to opt for automated payments:
1. Review Terms Clearly
Before you agree to any recurring payment, check the terms and conditions. Understand how often you’ll be charged, what the amount is, and how to stop automatic payments if needed.
2. Choose Payment Options Carefully
Use a payment method that you can easily track, like a credit card or a dedicated account. This makes it simpler to spot any unwanted or unexpected charges in your monthly statements.
3. Watch for Renewal Dates
Mark your calendar for renewal periods. Many auto-renewal reminder emails might end up in the spam folder and slip from your attention, so it’s good to be aware of the dates in case you want to cancel recurring payments before the next cycle.
4. Monitor Statements Regularly
Make it a regular habit to check your bank or credit card statements. If you notice a charge you don’t recognize, act quickly, and figure out how to stop recurring payment tied to it.
5. Prefer Prepaid Plans (If Available)
Some services offer prepaid plans instead of recurring billing. These give you more control since you actively choose to renew, rather than being charged automatically.
Bottomline:
Managing recurring payments is a part of modern financial hygiene. Whether it’s for a subscription service or an auto-debit for bills, knowing how to stop recurring payment authorizations gives you better control over your money. Always check your active auto-pay instructions, and don’t hesitate to cancel recurring payments that no longer serve your needs.