A stop-payment order occurs when a bank customer instructs their bank to refrain from cashing a check they have issued. This may be due to the check being misplaced or stolen, or if the customer has a change of heart regarding the payment. It is akin to temporarily disabling the check from being cashed until the customer provides authorization.
A stop-payment order is a customer’s instruction to their bank to refuse payment for a specific check. This means that if the check is presented for payment, the bank will not honour it. For instance, if a customer writes a check to a vendor for a service but later decides to cancel the service, they can request a stop-payment order from their bank to prevent the vendor from cashing the check. Similarly, if a customer loses their checkbook or suspects it has been stolen, they can issue a stop-payment order for all the checks in the checkbook to prevent any unauthorized transactions. Stop-payment orders are beneficial in situations where a customer wants to prevent a particular check from being cashed or unauthorized transactions from occurring.
A stop-payment order is a request made by an account holder to their bank or financial institution to prevent a specific check or electronic payment from being processed or paid.
You may consider placing a stop-payment order if you have lost a check, suspect it has been stolen, or if you have made an error in writing the check, such as writing the wrong amount or payee.
To place a stop-payment order, you typically need to contact your bank or financial institution either in person, over the phone, or through their online banking platform. They will require specific details about the check, such as the check number, date, and amount.
Most banks and financial institutions charge a fee for placing a stop-payment order. The fee amount may vary, so it is advisable to check with your bank beforehand.
A stop-payment order usually lasts for a specific period, typically six months. However, some banks may offer shorter or longer durations. It is important to confirm the duration with your bank.
Stop-payment orders can be placed on checks, electronic payments, or even pre-authorized debits. However, it is important to check with your bank to ensure they offer stop-payment services for the specific type of payment you wish to stop.
In most cases, you cannot place a stop-payment order on a cashier’s check or money order. These types of payments are considered guaranteed funds, and once issued, they cannot be canceled or stopped.
If the payment has already been processed before you placed the stop-payment order, it cannot be reversed. However, you may be able to dispute the payment and seek a refund or resolution through your bank’s dispute resolution process.
Yes, you can place a stop-payment order on recurring payments or subscriptions. However, it is important to note that this will only stop future payments, and you may need to cancel the subscription or recurring payment directly with the merchant or service provider.
Yes, you can remove or cancel a stop-payment order if you no longer wish to prevent the payment from being processed. You will need to contact your bank or financial institution and provide them with the necessary details to cancel the order.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
- Page URL:https://dlssolicitors.com/define/stop-payment-order/
- Modern Language Association (MLA):Stop-Payment Order. dlssolicitors.com. DLS Solicitors. May 09 2024 https://dlssolicitors.com/define/stop-payment-order/.
- Chicago Manual of Style (CMS):Stop-Payment Order. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/stop-payment-order/ (accessed: May 09 2024).
- American Psychological Association (APA):Stop-Payment Order. dlssolicitors.com. Retrieved May 09 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/stop-payment-order/
Our team of professionals are based in Alderley Edge, Cheshire. We offer clear, specialist legal advice in all matters relating to Family Law, Wills, Trusts, Probate, Lasting Power of Attorney and Court of Protection.
All author posts