Can You Reverse a Pre-Authorized Debit in Canada? The 90-Day Rule
A gym, phone company or lender keeps pulling money from your bank account after you cancelled, or takes more than you agreed to. You usually can get it back, but the clock starts the day the money leaves.
- Rules checked October 24, 2026
- By H Paul
- 7 min read
On this page
This guide covers the Rule H1 limits that Canadian banks follow, a dated example of how the 90-day window works, and the steps to claim a refund.
The short answer
Yes. If a personal pre-authorized debit (PAD) did not follow your agreement, came after you cancelled, arrived without the notice you were owed, or was never authorized, your bank must accept a reimbursement claim made within 90 calendar days of the debit. After 90 days, the bank no longer has to refund you through this process, and you have to deal with the biller directly.
The rules come from Payments Canada Rule H1, the standard for pre-authorized debits that Canadian financial institutions use in the clearing system. The Financial Consumer Agency of Canada (FCAC) gives the same 90-day guidance to consumers.
When your bank must refund a pre-authorized debit
Section 24 of Rule H1 says your financial institution must accept a claim, on a best-efforts basis and right away, when you declare one of these:
- The debit did not match your PAD agreement. For example, a wrong amount, a wrong date or an extra withdrawal.
- You cancelled the agreement. The debit came after you revoked it.
- You did not get required notice. This covers the confirmation of a new agreement and the advance notice of a changed or variable amount.
Section 23 adds a separate claim when you never had a PAD agreement with that company at all. That claim also has a 90-day limit from the posting date and applies to every type of PAD.
You make the claim by signing a reimbursement declaration at your bank. If the account needs two signatures, both people sign. You also declare that the biller has not already refunded you.
The notice a biller owes you
Rule H1 sets the notice periods that a missed notice can be measured against:
- Confirmation of a new agreement: at least 10 calendar days before the first debit, unless you agreed to waive or shorten it.
- Advance notice for regular debits: at least 10 calendar days before a fixed amount changes, a payment date changes, or each variable amount is taken.
- Irregular debits: the biller needs your approval for each one, and you cannot waive this.
Check your agreement before you claim. A waiver of notice is allowed only if you authorized it, and the clause has to be displayed prominently, for example in bold.
Three ways to stop or undo a debit
| Option | What it does | Time limit | Fee |
|---|---|---|---|
| Cancel with the biller | Ends future debits under the agreement | Biller has up to 30 days | None set by Rule H1 |
| Stop payment at your bank | Blocks one or more withdrawals at your bank | Set by your bank | $16 to $30 at National Bank |
| Reimbursement claim | Returns money already taken | 90 calendar days (personal) | None set by Rule H1 |
Sources: Rule H1 sections 24 and 30, amendment in effect July 27, 2026; National Bank help centre, checked October 24, 2026. Rule H1 does not set a stop payment fee, so other banks may charge differently.
In most cases you use more than one. Cancel in writing first, place a stop payment if a debit is due before the biller acts, and file a claim for anything already taken that broke the rules.
A worked example: a gym that kept charging
Say you cancelled a $59.99 monthly gym membership in writing on May 1, 2026. The gym had 30 days to stop, but it kept withdrawing $59.99 every month from June to October. You notice on Monday, October 26, 2026, and go to your bank that day.
| Debit date | Days before Oct 26 | Last day to claim | Claim at bank? |
|---|---|---|---|
| Mon, Jun 15 | 133 | Sun, Sep 13 | No, past 90 days |
| Wed, Jul 15 | 103 | Tue, Oct 13 | No, past 90 days |
| Fri, Aug 14 | 73 | Thu, Nov 12 | Yes |
| Tue, Sep 15 | 41 | Mon, Dec 14 | Yes |
| Thu, Oct 15 | 11 | Wed, Jan 13, 2027 | Yes |
Hypothetical example. The last claim day is 90 calendar days after each debit date. Weekends and holidays count as calendar days.
Your bank must refund the last three debits, which total $179.97. The first two, $119.98 together, fall outside the 90-day window. You can still ask the gym for that money, but your bank is not required to return it. Two months of not reading statements cost you 40% of the $299.95 the gym took.
Read your statement once a month
The 90-day limit is generous, but it only protects you if you notice the debit. A short monthly habit catches almost every problem in time.
- Scan for repeat namesLook for every company that withdraws money on a schedule.
- Match the amountsCompare each debit to the amount in your agreement or the notice you received.
- Flag anything after a cancellationNote the date you cancelled and treat any later debit as a claim.
Exceptions that catch people
Business accounts get 10 business days
A debit coded as a business PAD, used for goods or services tied to your business, can only be disputed through Rule H1 up to 10 business days after it posts. A business debit on Wednesday, January 13, 2027 would have to be claimed by Wednesday, January 27, 2027. Sole proprietors who pay suppliers this way should check their account weekly.
Cancelling does not cancel the contract
The FCAC is clear that ending a PAD does not end your contract. If you still owe the biller, you need to pay another way. A claim works when the debit itself broke the rules, not when you simply disagree with a bill you owe.
Retries after a bounced payment
If a debit is returned for non-sufficient funds, the biller may present it again once, within 30 calendar days, for the same amount. Rule H1 bars adding interest or charges to that retry. Your own bank may still charge you its NSF fee, which our guide to the $10 NSF fee cap explains.
Credit card charges follow different rules
Rule H1 covers withdrawals from a bank account. A recurring charge on a credit card is not a pre-authorized debit from your account, so the dispute process and its deadlines come from your card issuer. Call your card issuer if a subscription keeps billing your card.
How to claim a refund, step by step
- Gather the facts. Note the debit date, amount and biller, and find your PAD agreement and any cancellation notice you sent.
- Contact the biller. The FCAC suggests telling the biller right away. Some will refund you directly, which is often fastest.
- Go to your bank within 90 days. Ask to make a reimbursement claim under Rule H1 for each debit, and sign the declaration.
- Cancel in writing if you have not already. If the agreement has no cancellation steps, Payments Canada says to write to the biller and refer to section 30 of Rule H1. Keep a copy.
- Confirm the debits stopped. Check your next statement. Place a stop payment if another debit is due before the 30 days are up.
- Complain if the bank refuses. Use your bank's complaint process. Every federally regulated institution must have one.
Frequently asked questions
Can I get my money back from a pre-authorized debit in Canada?
Yes, if the withdrawal broke the rules. For a personal pre-authorized debit, you can ask your bank for reimbursement up to 90 calendar days after the money came out if the debit did not match your agreement, came after you cancelled, came without required notice, or you never agreed to it. You sign a reimbursement claim declaration at your bank.
How do I cancel a pre-authorized debit?
Send the biller a written cancellation and keep a copy. Follow any steps in your PAD agreement. Under Rule H1 the biller must stop new debits within 30 days of your notice. Cancelling the debit does not cancel your contract, so you still owe anything due.
Is stopping a payment at my bank the same as cancelling?
No. A stop payment blocks one or more withdrawals at your bank, often for a fee. National Bank lists $16 to $30. It does not end your agreement with the biller, so you should also cancel in writing.
What if more than 90 days have passed?
Your bank is not required to reimburse you through the Rule H1 process after 90 days. You can still ask the biller for a refund or pursue the matter outside the payment rules.
Does the 90-day rule apply to business accounts?
Not in the same way. A debit coded as a business PAD can only be disputed through Rule H1 up to 10 business days after it posts.
Can a biller take extra money after a payment bounces?
A biller may re-present a debit that was returned for non-sufficient funds once, within 30 calendar days, for the same amount as the original. Rule H1 says the retry must not include additional charges.
- Sources, checked October 24, 2026: Payments Canada Rule H1, Pre-Authorized Debits (2026 edition, amendment No. 13 effective July 27, 2026), sections 5, 16 to 19, 22 to 24, 30 and Appendices I and III; Payments Canada: Pre-authorized debit consumer guide; FCAC: Pre-authorized debits (modified 2026-03-12); National Bank: Stop a pre-authorized debit.
- Method: Claim deadlines in the example were calculated by script as 90 calendar days after each debit date, then checked a second time with day-count arithmetic. The business PAD date was counted as 10 weekdays, with no holidays in that window. Dollar totals were computed and rechecked the same way.
Important: This guide is general information, not legal or financial advice. Your PAD agreement and your financial institution's own policies apply to your situation. Gizly is not paid by any company mentioned here. See our affiliate disclosure.
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