How to Cancel a Check and Request a Stop Payment

Canceling a check, also known as initiating a stop payment, allows a bank account holder to prevent a check they’ve written from being cashed or deposited. This action protects against unauthorized payments or corrects errors. Acting quickly is important, as a stop payment order is only effective if the check has not yet been processed by the recipient’s bank.

When to Cancel a Check

There are several situations where canceling a check is necessary to protect your funds or rectify a mistake. If a check is lost or stolen, placing a stop payment helps prevent unauthorized individuals from cashing it. If you discover a check was issued with an incorrect amount or the wrong payee information, a stop payment allows you to void the erroneous payment and issue a correct one.

You might also cancel a check if you’ve paid for services or goods that were not received, were unsatisfactory, or if you accidentally made a duplicate payment. Suspected fraudulent activity, such as a scam, is another reason to initiate a stop payment, aiming to stop the funds before they reach a scammer. In all these cases, prompt action is important to ensure the check does not clear your account.

Information to Gather for Cancellation

Before contacting your bank to cancel a check, gather specific details. You will need the exact check number, which helps your bank identify the specific document to stop. The precise amount of the check is also required, along with the date the check was written.

You will also need the full name of the payee, the person or entity to whom the check was made out. Your bank account number from which the check was drawn is necessary to link the stop payment order to your account. Having this information readily available will streamline the cancellation process.

How to Request a Stop Payment

Initiating a stop payment order with your bank can be done through several methods. Many banks offer online banking portals where you can submit your request electronically. You can also call your bank’s customer service line to speak with a representative.

For in-person assistance, visiting a local branch allows you to complete a specific form with a bank employee. You will need to provide the previously gathered check details to the bank. After submitting your request, it is wise to obtain a confirmation number or a follow-up email as proof of your stop payment order.

What to Know About Stop Payment Orders

Once a stop payment order is placed, banks typically charge a fee for this service, which can range from $15 to $36. This fee is generally applied per stop payment request.

A stop payment order on a personal check is usually valid for six months and can often be renewed for an additional fee. If a check is still cashed despite a properly placed stop payment order, the bank may be liable for the amount. It is important to monitor your account after placing the order to ensure the check does not clear, and to contact your bank immediately if it does.

Canceling Other Types of Payments

The process for canceling other financial instruments, such as cashier’s checks and money orders, differs significantly from personal checks. These are considered guaranteed funds, meaning the money is typically drawn from the issuer’s account at the time of purchase. Consequently, simply placing a stop payment is often not possible.

If a cashier’s check is lost or stolen, the issuing bank may require you to obtain an indemnity bond, which is a type of insurance policy protecting the bank if the original check is later cashed. There may also be a waiting period, often around 90 days, before a replacement check or refund can be issued. For money orders, you will usually need to contact the issuing institution directly, provide details like the serial number and receipt, and complete a cancellation request form, which may involve a fee and a waiting period for a refund.