How to Do a Stop Payment: Steps and Fees

A stop payment allows an account holder to prevent a financial transaction from being processed. It serves as a protective measure, halting the flow of funds before they are disbursed to a recipient. This can be important in situations ranging from a lost check to an unauthorized recurring debit.

Information Required for a Stop Payment

Initiating a stop payment successfully depends on providing precise details to your financial institution. For paper checks, you need the exact check number, the amount of the check, the date it was written, and the name of the payee. Providing inaccurate information can render the stop payment ineffective.

For electronic payments, such as Automated Clearing House (ACH) transfers or recurring debit card transactions, you need the exact dollar amount of the transfer, the date it was initiated or scheduled, the recipient’s name, and a transaction or authorization ID. For recurring payments, you may also need the merchant’s name and the last four digits of the account number used for the transaction.

While stop payments are applicable to checks and electronic debits, certain payment types are not eligible. Wire transfers are often difficult or impossible to stop once sent due to their immediate and irrevocable nature. Certified checks and cashier’s checks, which are guaranteed by the issuing bank’s funds, cannot be stopped once issued.

Methods for Initiating a Stop Payment

Once you have gathered transaction details, you can proceed with initiating the stop payment request through various channels. Online banking platforms provide a straightforward method. You log into your account, navigate to a section like “Account services” or “Stop payments,” and then input the collected information into an online form. This digital method creates an immediate record of your request.

Another common approach is to contact your bank by phone. Be prepared to provide your account details and transaction information to the representative. Some banks may have automated phone systems for single check stop payments, guiding you through prompts. Confirming the request is an important step.

Visiting a bank branch is an option for in-person service. You should bring relevant documentation and be ready to provide the transaction details to a teller or banking representative. They will guide you through filling out a stop payment form. Some complex requests, such as those involving cashier’s checks, may require an in-person visit.

Key Details After Requesting a Stop Payment

After submitting a stop payment request, receiving confirmation from your financial institution is important. Banks provide a confirmation number, an email, or a written notice. Retaining this confirmation is advisable for your records, as it serves as proof that the request was made.

The duration for which a stop payment order remains effective can vary depending on the type of payment and how the request was made. For checks, a stop payment order is valid for six months, though verbal requests may only last 14 days unless followed by a written confirmation. Some banks may allow these orders to be renewed for additional periods. For ACH items, stop payment orders can remain in effect indefinitely or for a specified period, such as six months, particularly for recurring transactions.

Financial institutions generally charge a fee for stop payment services. The cost can range from approximately $15 to $36, with an average often around $30 to $32.40 per request. Some banks may offer reduced fees for online requests or waive fees for certain premium account holders. It is important to note that this fee is usually assessed regardless of whether the payment is successfully stopped.

Certain exceptions and limitations exist regarding stop payments. A payment cannot be stopped if it has already cleared or is in the process of being processed. This underscores the importance of acting quickly once a need for a stop payment arises. Furthermore, stop payment orders do not absolve you of any underlying contractual obligations to the payee; you may still owe the money or be subject to late fees or penalties if an arrangement is not made with the merchant.