What Is a Stop Payment on a Check?
A stop payment is a formal request made to a financial institution to cancel a check or payment that has not yet been processed. A stop payment order is issued by the account holderand can only be enacted if the check or payment has not already been processed by the recipient.
Issuing a stop payment order on a check often costs the bank account holder a fee (generally $30 although bank policies differ), which is levied by the institution. There are several reasons that a stop payment order on a check may be requested. For example, the account holder may have sent a check for the wrong amount or may have canceled a purchase after having put the check in the mail. Occasionally, if the stop payment is not requested in time and/or incorrectly, the financial institution will not be able to halt the process.
Key Takeaways
- A stop payment is a request to cancel a payment before it has been processed, for example by cancelling a check before it has been deposited.
- There are many reasons why a stop payment might be requested, including cancellations of goods or services, or human error in writing the wrong amount on a check.
- Issuing a stop payment order often costs the bank account holder a fee for the service.
- A stop payment request can expire if the check or payment isn't found by the bank.
How Do I Stop Payment on a Check?
To stop payment on a check, go to a bank branch or contact the bank by phone and speak to a human being, not a recording. Request a Stop Payment Order. Make sure to report the check number, the amount, the recipient's name, and the date on the check. Follow up in writing.
This will only work if the check has not yet been cleared by the bank. If it has cleared, you'll need to contact the recipient of the check to seek a resolution.
How a Stop Payment on a Check Works
To request a stop payment, an account holder generally provides specific information about a check that is in progress to the bank—e.g., check # 607 for $250 written to John’s Cleaning Agency.In an ideal scenario, the bank would then flag the check and prevent it from clearing the account.
If a bank is unable to locate the check, it will often continue to look for the check for six months, although policies differ among banks. Some banks offer the opportunity to extend or refresh the stop payment, via a verbal or written request.
If the check is never found, the request for stop payment usually expires, and the check could potentially be paid.
Special Considerations
In addition to issuing individual stop payments, additional measures for securing checks and personal finance information more generally are becoming mainstream. This protection is important if an account holder is concerned about error or fraud.
One method that has been updated over time is the addition of a padlock feature on personal checks. The Washington-D.C.-based Check Payment Systems Association (formerly Financial Stationers Association) created the padlock feature as check fraud grew pre-2000. The padlock feature completed a triumvirate of features, incorporated into a check, to add complexity and make it more challenging for fraudsters to reproduce it.
Online banking, which is now used by all major banks like Bank of America, TD Bank, Citibank, Chase Bank, is designed to improve the efficiency of depositing, transferring, and withdrawing funds, along with balance-checking and other, relatively simple personal finance tasks. With individual financial information now stored online—the potential for secure encryption is high—along with the ability of cyber-criminals to steal data. Despite such threats, many have chosen to bank fully online. In this way, issuing stop payments, among other tasks, become more efficient.
FAQs
How Do I Stop Payment on a Check? To stop payment on a check, go to a bank branch or contact the bank by phone and speak to a human being, not a recording. Request a Stop Payment Order. Make sure to report the check number, the amount, the recipient's name, and the date on the check.
How does a stop payment on a check work? ›
A stop payment is an order by an account holder of a financial institution to cancel a payment before it is processed. A stop payment can only be executed if the check or payment has not been processed by the receiving bank/recipient. The financial institution charges a fee for processing the stop payment request.
How much money do you need to stop payment on a check? ›
The fee to cancel, or “stop payment,” on a check can be $30 or more at many large banks. However, some banks and credit unions charge less, and the cost can vary depending on how you make the request.
Can you stop payment on a check without the check number? ›
You'll need to provide the following information to authorize a stop payment and verify your identity: Name of the check recipient. Date on the check. Check number and amount.
How long does it take to cancel a check? ›
How long does it take to cancel a personal check before it's been cleared? Canceling a check is a process that can take up to 10 days. In some cases, it can take up to 15 days. The reason for the delay is that banks need time to process the cancellation request before they can release the funds in the account.
Can a check with a stop payment still be cashed? ›
Generally, banks honor a stop payment request for a check drawn on your account. If you stop payment properly and the bank cashes the check, the bank may be liable for the cashed check. you fail to provide sufficient notice to implement the stop payment order.
Can someone stop payment on a check after it clears? ›
Once the check has been cashed by its recipient, the person who wrote or authorized the check won't be able to make a stop payment with their bank. When the bank has all the needed information to confirm the canceled check, it will be flagged for six months, after which the stop payment expires.
How long does it take for a stop payment to process? ›
If I put a stop payment on a check, how long will it take for the stop payment to go through? - Quora. Most bank systems are real time. The law is such that they are not required to confirm in writing for way after the request so it will be pretty much instant.
What type of check Cannot be stopped? ›
Generally, a customer cannot order a stop payment on a cashier's check, and the bank must honor a cashier's check when it is presented for payment. This is because a cashier's check is drawn directly on the bank that issues the check, not on your account.
Can I ask my bank to stop a payment? ›
To stop payment, you need to notify your bank at least three business days before the transaction is scheduled to be made and your bank may charge a fee. The notice to stop the transaction may be made orally or in writing. A bank can require written confirmation of an oral stop payment request.
You can ask your bank or credit union to cancel the check with a stop payment order, but to do that you'll need to follow a set process. And you should be aware that a stop payment isn't forever.
What are some reasons to submit a stop payment on a check? ›
Reasons to Stop Payment on a Check
- Incorrect information on a check.
- A check mailed to the wrong address.
- A lost or stolen check.
- Insufficient funds in a bank account.
- A dispute over a purchase or services rendered.
The cost for placing a stop payment on a check is up to $35 and it'll remain in effect for 24 months. If you need to renew the stop payment after 24 months, an additional stop payment fee will be charged. Some consumer accounts will discount the stop payment fee.
What are 3 reasons an office may stop payment on a check? ›
Reasons to Stop Payment
Consumers and businesses may request to stop payment on checks for a number of reasons, including error, fraud, or dispute: Checks mailed to the wrong address or made out for incorrect amounts. Insufficient funds.
Why would a stop payment not work? ›
A stop payment request will not work if the check has already been deposited or cashed or the electronic payment has been processed. This is because a stop payment is for outstanding payments only, so a payer has a limited amount of time to request it.
