There are many reasons why you might need to know how to cancel a check. Maybe you think an error was made, such as if it was written for the wrong amount, or maybe the check was lost or stolen.
Whatever the reason, there are several steps to take when you need to cancel a personal or business check.
What is check cancellation?
Check cancellation, or a “stop payment” order, occurs when a bank or credit union customer requests to cancel a check that has not been cashed.
For example, if you change your mind about a payment you made after writing or sending the check, you can cancel a personal or business check through your bank or credit union.
You can only cancel a check before it is deposited or cashed by an individual or company, so you’ll want to move quickly if you need to cancel a check.
When to cancel a check
A check should be canceled if you notice an error, such as the wrong amount, the recipient’s name was misspelled or you do not have enough money in your account to cover the check.
If the recipient communicates that your check was stolen or lost, you should also cancel it immediately.
If you’re a small business owner and run into a dispute with a supplier, or if there is a change in business circ*mstances, you might also need to cancel a check.
Another reason to cancel a check is if you suspect fraud occurred, such as if someone stole your checks, a company sent you an invoice twice or the amount on the invoice is incorrect.
Process for canceling a check
- Check if the check has cleared: You’ll only be able to stop payment on a check if the bank has not yet cashed the check. You can check your account online to see if the transaction has posted.
- Gather account details: Make sure you have these details handy: the checking account number, the number of the check, the amount on the check, the name of the recipient and the name of the person who signed the check if someone else is authorized to write checks on the account.
- Contact your bank: You can cancel a check on the phone, online or in person at your financial institution’s branch, but always be sure to get confirmation of your stop payment request in writing. Some banks will waive the stop payment fee for certain types of checking accounts, so check your bank’s policies for details.
Bank policies on check cancellation
Once a check has been cashed, you cannot ask a financial institution to issue a stop payment. In the case of fraud or theft, or if your checks were stolen and you report the theft to your bank, there is a chance you can get your money back. You will also need to report any fraud cases to law enforcement and the Federal Trade Commission. You can report them online via the FTC’s fraud reporting service.
The rules for canceling a check are the same whether or not you have a personal or business account.
Potential fees for canceling a check
The majority of banks will charge a fee for canceling a check, which is often around $35, if you ask for a stop payment order to cancel a check, but be sure to check before because fees fary. For example, Ally Bank charges $15, while Wells Fargo has no fee.
Banks can also stop payments for ACH transactions, such as bill pay, but require advance notice. For instance, Capital One requires the request to be made at least three business days before the transfer is scheduled to be made. Once the bill pay has started processing, it cannot be stopped or changed.
Electronic checks and cancellation procedures
You can easily cancel payment on a check by logging into your account online via a desktop or mobile device.
Once you’ve logged into your account, your bank should have an option under account services or customer service where you can cancel a check, change the details or stop payment. Depending on the bank, the stop payment order should become effective as soon as one business day.
The impact of check cancellation on your credit score
Canceling a check will not directly impact a person’s credit score, said Jim Triggs, CEO of Money Management International, a Stafford, Texas-based nonprofit debt counseling organization.
The exception is if the check was being sent to pay a debt, such as an auto loan or credit card.
“In that case, if the check is canceled and payment is not made before the consumer is 30 days delinquent on the debt, that could impact the consumer’s credit score,” Triggs said. “The person’s credit score is not impacted from the canceled check directly.”
Frequently asked questions (FAQs)
If a check is already cashed, a bank cannot issue a stop payment order.
You cannot cancel a check after it has been deposited and processed by a financial institution.
Depending on its policies, a bank may process a stop payment request and cancel a check as soon as one business day.
In general, all banks will allow you to make a stop payment request to cancel a check. However, you may need to submit the request three business days before the payment is scheduled and follow up in writing following your bank’s policies.
