Stop Payment

What is a stop payment?

A stop payment is an instruction to your bank to refuse payment on a specific check. You request stop payments when checks are lost, stolen, issued in error, or when a dispute arises with the payee. Banks charge fees for stop payment orders, typically $25 to $35. The order remains effective for six months to one year depending on your bank, after which it must be renewed.

When to use stop payment

Lost checks that might be found and deposited by someone other than the payee warrant stop payments. Duplicate payments discovered after mailing justify the fee. Disputes with vendors where you have valid grounds to withhold payment may call for stop payment while the matter resolves. Do not use stop payment to avoid legitimate obligations.

Stop payment limitations

Stop payments can fail if the check has already been processed before your request reaches the bank. Electronic check conversion can process checks faster than traditional clearing. If the stop payment fails and the check clears, you have limited recourse against the bank. Confirm the check has not yet cleared before relying on a stop payment order.