Cancelling your debit card can be a slow and frustrating process. Not only are you left without a viable card to spend money with, but you also have to access and change all accounts that use your cancelled debit card as a source of funds.
When you close your debit card, you are also risking the cancellation of any payments that have yet to be processed through your bank account. So what payments could get cancelled when you stop for a credit card?
Down below we have compiled together some important information regarding the subject of your credit card and what its cancellation can affect. Here you will find everything you need to know about the cancellation process and whether you have closed any recurring payments.
We understand that you probably know what a debit card is, but some people still don’t know it’s true definition.
A debit card is a plastic card that is used by consumers to purchase goods as an alternative to cash. Unlike credit cards, debit cards will typically take their funds from your bank account.
Although some debit cards can receive their funding through a prepayment program arranged by you and your bank.
You will want to cancel your debit card only under certain circumstances, these include the misplacement of your card, or your card being stolen for criminal purposes.
When you cancel your debit card you must order a replacement straight away, otherwise, you will be unable to access your funds without the assistance of your bank.
Any online retail accounts associated with the card will also have to be changed or they will not be able to access the money you have in your bank account.
Short answer – yes. If you have used your debit card to set up any recurring payments, then cancelling it will also stop these payments from being taken out of your bank account.
If you imagine that your payments and your bank account are two different sides of a river, then your debit card is the bridge that connects them. Without your debit card, the payments cannot be taken out of your bank account, as the company will no longer have access to your funds.
If you find yourself in a situation where you need to cancel your debit card, then you should contact any companies you have recurring payments with and let them know you are cancelling your debit card.
By doing this, you can start implementing methods that can be used to pay these companies until you have a new debit card.
Before cancelling your debit card, you should consider contacting any companies that you have recurring payments with – so that you can learn more about the protocols they have in place to help you in this situation.
When you set up a recurring payment, some companies will ask you to also set up a backup payment method, just in case the company has difficulty accessing your funds.
If you have a backup payment method in place, then the company should still be able to make the payments without the need for your debit card. However, some companies do not offer this option and this could mean you will owe extra charges when your bank declines the payment.
Sometimes contacting the company can be the most effective option, especially if they can stop or pause the payment at your request.
Certain companies will allow you to pause any outgoing payments until you have rectified the issue or received a new debit card, which can be useful when you are placed in such a difficult situation.
However, not all companies can offer this solution and this could mean you will have to owe late fees for the nonpayment.
In any situation like this, we would suggest that you contact the companies and see what they can do to help. Some companies may understand the issues you are going through and they may even offer to give you more time until you have acquired the necessary funds.
The only issue is that you could be scrutinized by the company in future, especially if you have a history of declined payments associated with your name.
This could lead the company to give your account to a collection agency, which will result in the defamation of your character and the lowering of your credit score.