If you have an invoice payable to a merchant on a monthly basis, or on a fixed date, such as for a magazine subscription or a cell phone service, the merchant can offer you a preauthorized payment agreement. In doing so, you authorize the merchant to withdraw the payment you owe directly from your credit card.

Ending an agreement

If you want to end a preauthorized payment agreement, you must notify the merchant of that fact without delay. The merchant will then no longer be authorized to withdraw your payments.

Make sure the credit card issuer is also notified that you have ended the agreement. As soon as the issuer is notified, they must cease making payments to the merchant.

Last update : January 8, 2020

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The information contained on this page is presented in simple terms to make it easier to understand. It does not replace the texts of the laws and regulations.