Cancellation Letter: How to Stop the Charges + Template

The two steps that actually stop the money

A billing system does not stop charging you just because you cancelled the service. Cancelling closes the account; the recurring charge runs on a separate authorization you gave when you signed up. To stop the money you have to do both:

• Cancel the service. Tell the company you are ending the subscription or membership, effective on a date, and ask them to confirm in writing.
• Revoke the authorization to charge you. State plainly that the company is no longer authorized to charge your card or debit your account. This is the line that stops the billing, and it is the one people leave out.

Put both in the same letter, then follow the payment steps below so a stubborn biller cannot keep drafting your account.

What to put in the letter

• Your details and account number. The name on the account, the account or membership number, and the email or address on file, so they can find you.
• What you are cancelling and when. Name the service and the effective date. "Immediately," or the end of the current billing period if your contract requires notice.
• The revoke line. "I revoke authorization for [Company] to charge my card or debit my account for this service, effective [date]."
• A request for written confirmation. Ask them to confirm the cancellation and the final charge, if any, in writing.
• Date and signature. Date it in full and sign it. Send it by a method you can prove: email you keep, or certified mail for a contract that requires written notice.

Stopping the payment, not just the service

If the company keeps charging after you cancel, your bank is the backstop. The mechanics depend on where the money comes from:

• Bank account (ACH or preauthorized debit). Under the Electronic Fund Transfer Act and Regulation E, you can stop a preauthorized transfer by telling your bank at least three business days before the next scheduled debit. The bank may take the instruction by phone but can require written confirmation within 14 days, so send it in writing too.
• Debit or credit card. Revoke the authorization with the merchant in writing, and ask your bank or card issuer to place a stop on future recurring charges from that merchant. If their standard block does not hold, ask for a merchant-level or recurring-payment block.
• Keep the paper trail. Save the cancellation letter, confirmation emails, chat transcripts, and call notes, and write down the dates: when you cancelled, when you revoked authorization, and when any charge posted.
• Watch two billing cycles. Check your statements for the next two cycles to confirm the drafts have stopped. If one slips through after you revoked authorization, you have the record to dispute it.

Your cancellation rights in 2026

There is a lot of outdated advice about a federal "click to cancel" rule. Here is where things stand:

• The FTC "click to cancel" rule is not in force. A federal appeals court vacated it in July 2025, days before it was to take effect, and the FTC restarted the rulemaking in 2026. Do not rely on it as current law.
• Online subscriptions still have protection. The Restore Online Shoppers' Confidence Act (ROSCA) and state auto-renewal laws, such as California's, still require clear terms and a simple way to cancel an auto-renewing subscription. If a company hides the cancel button, that is a live issue.
• Door-to-door and off-premises sales. The FTC Cooling-Off Rule gives you three business days to cancel certain sales made away from the seller's usual place of business: 25 dollars or more for a sale at your home, or 130 dollars or more at a temporary location such as a trade show or a hotel conference room.
• Insurance. Most new policies come with a free-look period, often 10 to 30 days depending on the state, in which you can cancel for a full refund.
• Contracts with a notice period. Read your agreement. A gym or a service contract may require 30 days' written notice, and your cancellation takes effect at the end of that period, not the day you send it.

A cancellation letter you can copy

This one cancels a subscription and revokes the billing authorization in the same letter. The .docx above carries both this letter and an empty one to type into.

The template

Type your own details in. Keep the revoke line: cancelling the service and withdrawing the payment authority are two separate acts, and only the second one stops the money.

Mistakes to avoid

• Cancelling the service but not the authorization. The most common reason charges continue. Always include the revoke line.
• No effective date. "Please cancel" with no date lets a company push it into another billing cycle. State the date.
• Relying on a phone call alone. Cancel in writing so you have a record. If you call, follow up with an email that repeats what was agreed and the name of the person you spoke to.
• Ignoring a notice period. If your contract requires 30 days, sending the letter does not stop a charge that falls inside those 30 days. Plan the timing.
• Not checking your statements. Watch the next two billing cycles and dispute any charge that posts after you revoked authorization. If it was a wrong charge on a card, the billing error dispute letter is the next step.

Sources

• Electronic Fund Transfer Act and Regulation E on stopping preauthorized transfers (three business days' notice; written confirmation within 14 days).
• FTC Negative Option ("click to cancel") Rule vacated by the Eighth Circuit, July 2025; FTC rulemaking restarted 2026. ROSCA and state auto-renewal laws remain in effect.
• FTC Cooling-Off Rule: three-day cancellation for sales of 25 dollars or more at your home, or 130 dollars or more at a temporary location.

This page is general information about consumer cancellation and stop-payment rights, not legal advice. For advice on your situation, consult a qualified professional.