Debit cards are a useful way to pay for everyday goods and services, but sometimes a debit card needs to be cancelled. This can be done and there are a number of methods to do so.

Reasons for cancelling a debit card

A debit card may need to be cancelled for several reasons.

Firstly, a debit card may be issued for joint accounts, such as a married couple account or a shared household account, where it’s simply not useful. Before debit cards, joint accounts used to have two signatures to authorise a transfer or payment. But there is no way to double sign a debit card, as debit cards, although associated with a transaction account, are assigned to individuals and only have one pin number. So if your housemate moves out or there is a breakup, you’ll need to cancel that account.

A second reason to cancel might be to prevent unauthorised transactions on your account. This could happen if the card is lost, stolen or compromised by hackers. For example, if someone loses their wallet with their debit card inside, they’ll want to cancel the card as soon as possible to avoid someone else using it to make purchases or withdraw cash. Similarly, if you notice suspicious activity on your account , such as transactions you didn’t make or recognise, you will want to cancel the card and report the fraud to their bank straight away.

Another reason may be that you’re switching to a new bank. Maybe you’ve refinanced your home loan and need to move your money around.

Steps to cancel your debit card

If you do need to cancel your debit card, the steps will vary depending on who you bank with. However, there are some general common steps you can follow to make the process easier.

1. Contact your bank. Let your bank know as soon as possible and inform them that you want to cancel your debit card. If you suspect fraud is the case, the call them, or if you’re not in a hurry you can use the app. Some banks allow you to temporarily block your card while they process your cancellation request. This can prevent any unauthorised transactions on your card in case it is lost or stolen.
2. Report your card lost. If you did call because of fraud, ensure that it is reported so. This can help you with any liability for fraudulent charges. Some banks might require the notice in writing too.
3. Confirm the cancellation. Make sure your bank confirms that your card is cancelled. Check with them how it will be sent and to check your spam folder if it is sent by email. It sometimes helps to request a written notification to your letter box. If you don’t receive any confirmation within a reasonable time, you should contact your bank again
4. Destroy the old card. If you still have your old debit card you should definitely cut it up. This will prevent anyone else from accessing your money.

TIP: You should also check if you have any recurring payments or subscriptions linked to your old card and update them with your new card details or cancel them if you don’t need them anymore.

Avoid hidden fees and charges

If you do decide to go ahead and cancel your debit card, you may want to avoid paying any fees or charges that could sneak up on you. Transfer any remaining balance from your card to another account or withdraw it as cash. If you leave any money on your card, you may lose access to it or incur fees for inactivity or maintenance. You may also want to check if there are any rewards or benefits that you can redeem before you cancel your card.