Stop Payment Orders: How They Work and When to Use Them

stop payment order

a request that a bank or other financial institution not cash a particular check

A stop payment order is a request made by an account holder to his or her bank or credit union to cancel a previously authorized payment or check. This request can be made for several reasons, including:

1. A payment was made in error, or the wrong amount was charged.
2. The item was lost or stolen.
3. The payee has not delivered the goods or services agreed upon.

To initiate a stop payment order, the account holder must typically provide the bank or credit union with the following information:

1. The exact amount of the payment that needs to be stopped.
2. The date the payment was initiated.
3. The name of the payee (or recipient of the payment) and their contact information.
4. The account number associated with the payment.
5. The reason for the request.

There may be a fee associated with requesting a stop payment order, and the bank or credit union may require written confirmation of the request. It’s important to note that a stop payment order does not guarantee that the payment will be stopped, as it is only effective if the payment has not already been processed.

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