How Much Does It Cost to Stop a Check?
Understand the financial implications, necessary steps, and validity of stopping a check payment.
A stop payment order is an instruction given to a bank or credit union by an account holder to prevent a specific check from being processed and paid. This action can be taken if a check is lost or stolen, if there is an error in the amount or payee, or if an individual changes their mind about a payment. It serves as a protective measure to prevent unintended financial transactions from clearing an account.
Understanding the Costs
The cost associated with stopping a check can vary significantly depending on the financial institution. While some credit unions may charge lower fees, major banks typically impose charges ranging from $15 to $35 for this service. An analysis of several large U.S. banks indicates the average stop payment fee is approximately $32.40. These fees reflect the administrative effort involved in flagging and monitoring a specific payment within the banking system.
The method used to request a stop payment can also influence the fee. Some banks may offer a reduced fee for requests made through online banking or automated telephone systems. Conversely, requesting a stop payment in person at a branch or through customer service may incur a higher charge. Certain premium checking accounts or those with specific relationship tiers might include stop payment services at a discounted rate or even waive the fee entirely.
The Stop Payment Process
To successfully initiate a stop payment, gathering specific details about the check is essential before contacting your financial institution. You will need your checking account number, the check number, the exact amount of the check, the name of the payee, and the date the check was written. Providing precise information is crucial, as an incorrect amount or check number could result in the bank failing to identify and stop the payment.
Once you have the necessary details, you can submit a stop payment request through several channels. Most banks offer options such as their online banking portal, a phone call to customer service, or an in-person visit to a local branch. Some institutions may require a written confirmation to follow up on a verbal request. The bank will then process the request by flagging the check, aiming to prevent it from clearing your account.
When a Stop Payment is Effective
A stop payment order is only effective if the check has not already cleared or been cashed. If the funds have already been debited from your account, it is too late to place a stop payment. It is therefore important to act as quickly as possible once you determine that a stop payment is needed.
The duration a stop payment order remains active varies, but for most written requests, it is effective for six months. Some financial institutions may offer longer validity periods. If the check is presented after the stop payment order has expired, it could potentially be paid from your account. In such cases, or if a stopped check is inadvertently paid by the bank, you should immediately contact your financial institution to discuss the situation. While a stop payment can prevent a check from being cashed, it does not necessarily negate the underlying obligation or debt that the check was intended to cover.