Can You Stop a Pending ACH Transaction?

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Woman sitting in an office holding a credit card in one hand - Can You Stop a Pending ACH Transaction?

Automated Clearing House, or ACH, is a mechanism that permits money to be electronically transferred between two distinct bank accounts. 

It simply indicates that the deposit or deduction is waiting until the money has been processed if you see an ACH funding hold on your bank account. After that, the transaction is reported to the bank. However, it will take some time before the money is cleared.


Is it Possible to Stop a Pending ACH Transaction?

You have the legal right to cancel your authorization for ACH payments if you’ve already started them but now wish to stop. To do this, contact the biller by phone or letter and ask them to stop accepting automatic payments. 

Please send a note to your bank or credit union to let them know. If a business keeps deducting money from your bank account, you might be able to halt payment just like you would with a check. 

Contact the bank at least three working days before the payment date to prevent funds from leaving your account. By canceling the payment authorization, also known as an “ACH authorization,” you can prohibit electronic debits from being made from your account. 

In addition, even if you had previously consented, you have the right to ban a payday lender from deducting automatic electronic payments from your account. 


How does Stopping an ACH Payment transaction work?

If you have decided to stop the ACH payment transaction, firstly, you need to contact the company and your bank to proceed. First, inform the business that you are withdrawing your consent to automated withdrawals from your bank or credit union account. 

Revoking authorization is the term for this. Next, inform your bank that the firm has your “revoked authority” to deduct automatic payments from your account. There may be an online form available from some banks and credit unions.

However, issuing your bank a “stop payment order” can prevent an automatic payment from being sent to your account even if you haven’t canceled your authorization with the firm. This tells your bank to avoid the business from deducting funds from your account.


How Much Time Do You Have to Stop a Pending ACH Transaction?

In every transaction that you may do in a business, it is essential to know the time manners and when you can cancel them. Because if you are out of time, legally, you may not be able to cancel anything. 

Give your bank the stop payment order at least three business days before the next scheduled payment in order to halt it. The order may be given verbally, via phone, or in writing. 

You might need to issue a written stop payment request to your bank in order to stop future payments. Within 14 days after your oral communication, you must submit a written order if your bank requests one.


Do I Have to Call the Bank to Stop a Pending ACH Transaction?

You may obtain a stop payment order online or in writing, but calling your bank directly will initiate one more quickly. 

Usually, it takes not too long to inform the bank about the issue. Though, some banks can ask you to fill out a stop payment request form to begin the procedure.

However, the procedure highly relies on the rules of your bank. Usually, you may be able to stop the payment by a call; however, certain banks may require you to visit them or fill out a particular form that they offer. 

So firstly, check it with your bank, but be aware that in most cases, you should be able to call your bank and stop a pending ACH transaction.


How long does a pending ACH transaction take to cancel?

Usually, it may take up to two weeks to cancel the pending ACH transaction. However, sometimes, it may take a couple of days. If you notice a payment you did not authorize or made after you withdrew authorization, notify your bank or credit union immediately. 

In a timely manner, federal law allows you the opportunity to contest and receive your money back for any illicit transactions from your account. Your agreement with the payday lender is not canceled by revoking or stopping your automatic payment. 

You still owe the balance of a loan even if you block or withdraw an automated payment.


Final Thoughts on Stopping a Pending Ach Transaction 

Be warned that issuing a stop payment order typically entails a cost from the bank. Additionally, stopping your automatic payment does not end your agreement with the business. 

Ensure you terminate your contract with the firm and instruct them to stop the automatic payments if you wish to complete a subscription for a service, such as a cable or a gym. You must continue making payments on a loan even if you stop an automated payment.


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