How Stop Payment Works

Oct 02, 2023 By Triston Martin

If you're requesting an order for a stop-payment and you're able to provide the bank with the details of the specific check you wrote. You may issue an order to stop payment on an unpaid check anytime before it's been completed by following the steps below:


  • Contact your bank
  • Provide them with the information on your payee's check
  • Follow-up in writing
  • Pay a fee


The bank marks the check, and assuming the check hasn't made it to the bank to be processed, it won't allow the check to be cleared. If the check is lost, you could inform that bank "stop payment on check number 408 for $100, written to Hanry Enterprises on June 11." If the bank can receive that particular check, it will know not to continue with the payment. It is possible to ask for a stop payment verbally; however, you must respond with a written request within 14 days to verify your request. If you don't do this, the bank might not accept your request. Get it done as soon as possible to stop the check before it gets to the bank.


What It Costs


Banks generally charge a fee to mark your check, preventing the payment. A charge of $30 or less is common; however, it's worth asking about the amount you'll be charged. Some banks waive the cost for customers who have specific checking accounts or will charge less when you submit the stop request on the internet or by calling. It may also be cheaper to cancel multiple checks in one go (if you have to) rather than cancelling them one at a time.


How Long It Will Last


Your bank is usually on alert for your check for 6 months. There are different bank policies, and you should verify the details by contacting your financial institution. The stop payment will expire. If you wish to keep the stop-payment order in the future, you'll need to pay a charge to renew the stop payment.


Cashier's Checks


You can't stop payment on a cashier's cheque. Since the check is guaranteed to be accepted through the banks, it cannot refuse to pay it when it arrives (either cashed by the person receiving it or deposited into the bank account). However, if you think the check has been stolen or lost, you may request the cancellation. Contact the bank right away to report the problem; you'll be required to submit the declaration of loss, a paper that declares (under the penalty of perjury) that you do not have the check. The declaration is then a 90-day waiting period, at which point the bank will refund your money. The thief may still carry the three-month check-in timeframe and be on guard. You can ask for cancellation in the event of loss or theft, but you aren't able to make a change to a cashier's check simply because you've changed your decision. If this is the case, you'll need to recover your money from the person who paid you.



Do Stop Payment Orders Always Work?


As previously mentioned, the requirement is to make an order to stop payments before the bank can process the check. Stop payments can be cancelled within a certain date. If you do not renew your order, there is a chance that a check will be processed following expiration. Also, a stop-payment order may be omitted inadvertently, and your bank can process the payment. If this occurs, the bank will be accountable for any fees associated with the service, including the fee for stopping payments.


Certain types of payments are not suitable for stop payment orders. For instance, cashier's checks and money orders aren't suitable for stop payment orders. Because both require upfront payment, the funds are taken out of your account when issued. Instead of stopping the payment, you may choose to cancel a cashier's cheque or money order based on the specifics.


Are Stop Payment Orders Legal?



Orders to stop payments are legal and can be obtained by most banks and financial institutions. There are situations in which it is essential to stop the money flow. Stop payments also protect the consumer. While stopping a payment doesn't mean that individuals aren't responsible if they enter into a contract that demands the payment. Although you might have put off a particular payment, it doesn't relieve you from the obligation to pay. There is a chance that you could be liable for penalties for late-payments and other negative consequences like legal actions. The best method to avoid relying upon the stop-check order is to confirm the check or ACH payment information before you send it. If you are unsure regarding payment or have problems with the payee, contact them before making money.

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