A funds transfer cancellation letter is a polite request to a bank or a financial institution to cancel a payment or check they are yet to process. It is possible to make some mistakes when making payments; in such circumstances, it’s imperative to write a letter to the financial institution instructing them to cancel the payment. In your letter you must highlight the reason you’ve decided to cancel the funds transfer and eliminate any errors.
For example, you may have a wrong recipient name, account number or address that you need to be changed, any time you note a mistake funds transfer, write to the bank immediately before they process the payment.
- Start your letter with the date, your account number and company name & address
- Indicate you want to cancel the funds transfer and remember to include the 30days customary notice.
- With the cancellation letter, alert the company that they are no longer allowed to withdraw payments from your bank account/credit card/debit card.
- Any balance still owed to your account should be paid by check that will accompany the cancellation letter
- Indicated the consequences that may follow if the transaction isn’t canceled or you’re charged any extra fees.
- Prepare a typed funds cancellation letter and include a handwritten signature.
- Send the cancellation letter to the recipient as required.
Funds transfer cancellation letter template
Bank/financial institution address
Dear [name of your bank]
Sub: Standing order cancellation
Your account number:
Your swift code:
Company account number:
Company sort code:
I kindly request for cancellation of a standing order with the details indicated above. We have taken this action since the company has violated our business contract for a second time, leaving us with no choice but to terminate the agreement. In this regard, no payments should be made to the company from today henceforth unless otherwise instructed.
Thank you for your cooperation.
Sample funds transfer cancellation letter
March 4, 2022
To whom it may concern
This letter informs you of the cancellation of my automatic payment for membership number A005689T. This request is in line with directions from the management following the acquisition of the company by new owners.
At present, $500 is automatically withdrawn from my savings account each month. This cancellation should take effect immediately. Please contact me via (313)405 7070 should you have any quires about the issue.
Thank you for your swift response.
Tips for Writing a Perfect Cancellation Letter
- When writing the cancellation letter, ensure your name and the name of the organization are featured in the document to make it easier for the bank to recognize you.
- It’s also essential to ensure a valid reason backs the cancellation. It would be appropriate if you also refrained from any statements that may result in legal action against you.
- As you write your letter, you must settle any cancellation fee that is attached to the process (if any). Additionally, notify the organization/institution to inform you once they conclude the cancellation.
- Since the cancellation may affect the recipient, it’s vital in your letter to apologize for any inconvenience caused.
Can a money transfer be canceled?
This will depend heavily on the rules and regulations of the financial institution you’re using. In general, a money transfer can be canceled as long as the funds have not yet reached the recipient.
Can I cancel my Western Union transfer?
Yes. According to Western Union’s rules, any transfer can be canceled as long as the recipient has not received the money. This is for a standard money transfer only. You will have to contact their customer service with regards to a money order, or prepaid money transfer.
Can a bank transfer be refunded?
Normally a bank transfer cannot be refunded. However, the answer also depends on the financial service you employed. For instance, with software packages such as Quicken, they provide a quick and easy method, as do online payment services such as PayPal. Companies like FastSpring cannot refund a bank transfer, but if you used PayPal, they can refund you in that manner.
What happens if I transfer money to the wrong account?
Contact the financial institution involved immediately and request for the transfer to be halted or reversed. If the company involved is not providing you with the proper assistance, contact the CFPB directly at (855) 411-2372.