Recurring Payments and How to Cancel Them
9 Min Read | Published: May 23, 2025
This article contains general information and is not intended to provide information that is specific to American Express products and services. Similar products and services offered by different companies will have different features and you should always read about product details before acquiring any financial product.
Learn what recurring payments are, how they work, and how to cancel a recurring charge on a credit card. Get tips for managing payments today.
At-A-Glance
- Recurring charges on your credit card are automatic payments that can simplify budgeting but may create surprise expenses if left unmonitored.
- You can manage recurring payments by reviewing your statements, creating transaction alerts, and using subscription-tracking tools.
- To cancel recurring charges, talk to the merchant first and contact your bank or credit card issuer if you can’t get the support you need.
Recurring charges can simplify bill payments, but they can also sneak into your budget’s gray zone, blurring convenience with confusion. Whether it’s a free trial you forgot to cancel or a mysterious charge that’s come out of your account every month for the past three years, recurring payments can add up. Keep reading to break down recurring charges, how they work, and how to cancel them.
What Are Recurring Payments?
Recurring charges on your credit card are automatic payments you sign up for when buying a good or service. You may be charged a fixed or variable amount every thirty days, every three months, or once a year, but you can implement recurring charges to fit the schedule of your choice. Just remember to verify all companies or financial institutions before supplying your banking or credit card account information and authorizing payments.
Different Types of Recurring Payments
Recurring charges can be a convenient option if you regularly use a gym, digital service, or streaming services, but the convenience can also extend to other services. Here are some common types of recurring payments:
- Mortgage payments
- Car payments
- Utilities
- Student loans
- Childcare service payments
- Digital subscriptions
- Charitable donations
- Cell phone service with eligible providers
- Music streaming subscriptions
Benefits of Recurring Charges
Aside from being extremely convenient, recurring charges can also benefit you in the following ways.
- You May Avoid Late Fees
Recurring payments can help make sure your money goes where it needs to by the due date you set with your merchant or institution, potentially saving you from late fees.1 - You Can Save More Time
Recurring charges may help you avoid time-consuming manual payments, which require you to log into multiple apps or online banking accounts to send payments.2 - You Might See Positive Impacts on Your Credit Score
If you can set up recurring payments for your credit card despite potential balance fluctuations, you may see higher scores due to consistent, on-time payments.3
Downsides of Recurring Payments
While recurring charges are convenient, they may have the following drawbacks.
- Price Hikes Can Happen
Businesses can increase their prices at any time, and if you’re not mindful of alerts or routinely view your statements, you could miss increases that impact your budget.4 - Unexpected Fees Can Appear
If you find that you’re paying unexpected fees related to automatic subscriptions, this could negatively affect your budget. - You Might Forget About Unwanted Subscriptions
It’s easy to waste money on recurring subscriptions that you don’t really want but just haven’t found time to cancel yet.
Tips for Managing Recurring Charges
If you’re like the average American, you’re probably paying just under $1,000 a year for subscriptions.5 If you want to manage subscriptions more efficiently, these tips might help:
- Check your bank account and card statements routinely to review transactions. Factor the subscription cost into your budget before signing up.
Did you know?
You can use SpendSmartTM with your Amex Membership to automatically analyze your spending across linked accounts for better budgeting.
- Always read the terms and conditions, as reactivating or canceling a subscription might trigger fees.6
- Implement transaction or low account balance alerts to remind you when your money moves and how much you have in your checking account to help avoid overdraft fees.
- Use subscription-tracking apps to keep track of your automated spending.
How to Cancel Recurring Charges on a Credit Card
Here are quick options to help you cancel recurring charges:7
- Hop on the company’s app or website and log into your account to cancel subscriptions.
- Contact the company or its customer service center and tell them you want future recurring charges canceled. You can also visit in person if the company has a physical location.
- Get in touch with your credit card company or bank if you can’t reach or receive adequate support from a specific merchant.
You may also want to report fraud or scams to the Federal Trade Commission if you suspect your recurring charges are fraudulent and your institution or merchant is unresponsive.
Remember always to keep records of your cancellation emails and notices to protect yourself from potential recurring charges in the future.
How to Avoid Recurring Charges
If you don’t find recurring charges helpful, cancel all subscriptions and mark your calendar for manual payment days. In the meantime, these tips for avoiding recurring payments might help:
- Use subscription tracking tools can detect recurring charges on your credit card or checking account that you can later cancel.
- Set up calendar reminders on your devices if you opt for free trials.
- Become part of a group subscription that a friend or family member pays for and then send them money manually.
Frequently Asked Questions
To cancel a preauthorized payment, you’ll want to contact the company and inform them that you are revoking your permission for them to take automatic payments from your account.8
To better understand where a recurring charge is coming from, look at your credit card or bank statements to compare transactions with similar descriptions, identical amounts, or days of the month. This might help jog your memory. Some banks and apps also tell you which retail websites have your information saved, which can also help to provide clues on recent subscriptions.9
If you can’t identify where the charge is coming from and you don’t recognize the amounts, products, merchant, or location associated with the transaction, you should contact your bank or card issuer. Unauthorized charges could be fraud, so be proactive about clarifying unrecognizable charges.10
The Takeaway
Recurring charges streamline your finances by automatically charging your bank or credit account for subscriptions, but they can easily go unnoticed and chip away at your budget. It’s a good idea to review your statements regularly to make sure you can verify the transactions.
1,2,3,4 “Here's when you should — and shouldn't — use autopay for your bills,” CBS News
5 “The Average Consumer Pays Nearly $1,000 a Year for Subscriptions — What Do You Pay?,” Yahoo Finance
6 “How to Find and Cancel Recurring Credit Card Charges,” U.S. News Money
7 “How to Cancel Automatic Payments,” Experian
8 “How do I stop automatic payments from my bank account?,” Consumer Financial Protection Bureau
9 “7 tools to stop recurring card charges,” Bankrate
10 “Q: What should I do if I have unauthorized charges on my debit card?,” Federal Deposit Insurance Corporation
Liv Gillespie is a Philadelphia-based writer with a double M.A. in English Linguistics & Literature and Secondary Education. Her work focuses on personal finance
All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.
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