Taylor Scott
Stop payment orders are a useful tool for consumers to prevent a payment from going through. However, banks typically charge a fee for this service, which can vary depending on the financial institution and the method used to make the request. Fees for stop payment orders typically range from $20 to $30 but can be higher or lower. Some banks may offer discounts for requests made online, while others may charge more for personal assistance. Stop payment orders can be requested for various reasons, such as cancelling a check or stopping automatic payments, but they cannot be used for money orders or cashier's checks. It's important to note that stopping a payment does not remove the obligation to fulfill any existing contracts or loans.
| Characteristics | Values |
|---|---|
| Fee charged by banks | Yes, fees range from $20 to $30 each time but can be higher or lower depending on the bank or credit union. |
| Fee waiver | Possible for stolen blank checks. |
| Request methods | Verbal or written, online, mobile app, automated telephone banking, customer service, or in-person. |
| Request window | Before the payment has cleared or been processed by the recipient. |
| Information required | Check number(s), payee details, recipient's account information, name, phone number, address, account number, reason, etc. |
| Time to take effect | By the end of the next business day, but may vary depending on circumstances. |
| Expiry | Generally, six months. |
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What You'll Learn
Fees for stop payment requests vary by bank and method
The fee for stopping a payment typically ranges from $20 to $30, but it can be higher or lower depending on the financial institution and the type of account. Some banks and credit unions may charge less, and it's worth noting that the cost can sometimes depend on how the request is made. For instance, some institutions may charge a higher fee for personal assistance than for online or automated requests.
It's important to understand that a stop payment request may not be processed immediately. Banks are generally allowed a reasonable amount of time to process the request, and it usually goes into effect by the end of the next business day. To request a stop payment, individuals must provide specific information, such as their name, phone number, address, account number, and the reason for the request.
In addition to varying by bank and method, stop payment fees can also depend on the number of payments being stopped. Certain institutions, such as Navy Federal Credit Union and Pentagon Federal Credit Union, charge a slightly higher fee for stopping a consecutive series of checks compared to stopping a single check. This allows customers to cancel multiple checks at once for a lower cost than paying separate fees for each one.
It's worth noting that while stop payment requests are useful in certain situations, they are not always a perfect solution. Stop payment requests cannot be made for money orders or cashier's checks, and there are different processes for canceling pending credit card charges. Additionally, stopping a payment does not relieve the payer of their contractual obligations. If the payment was for a service or loan, the company may still charge late fees or other penalties.
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Stopping a payment is cheaper than overdraft fees
Stopping a payment is a handy tool to prevent a check or electronic payment from being processed by the recipient. However, it usually comes with a fee. This fee varies across banks, ranging from $20 to $30 per request. While this may seem like a high cost, it is often a cheaper alternative to overdraft fees. Overdraft fees are incurred when a bank account has a negative balance, and these fees are not one-time charges. This means that if you are not careful, you could end up paying extended overdraft fees, which are applied after your account has a negative balance for five consecutive business days.
For example, let's say you wrote a check for $100, but you only have $80 in your account. Instead of letting the check bounce and incurring an overdraft fee, you could request a stop payment. Even though the stop payment fee may be around $30, it is still a better option than the potential overdraft fee, which could be more than $35.
It's important to note that stop payment requests must be made while the payment is still outstanding or hasn't been completely processed. Once a payment has been processed, it cannot be stopped. Additionally, stop payment orders cannot be used for money orders or cashier's checks. To request a stop payment, you will need to provide specific details, such as the check number, amount, recipient's name, and check date.
While stopping a payment may be a useful option in certain situations, it should be reserved for emergencies due to the associated fees. To avoid these fees altogether, it is recommended to take proactive measures to prevent fraud and scams and to stay on top of your subscriptions and cancellations.
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Request methods: in-person, online, automated, or phone
When it comes to requesting a stop payment, the process varies depending on the bank or financial institution. Some common methods for making a request include in-person, online, automated, or phone calls. Here are the details for each:
In-person
For in-person requests, you usually need to visit a branch of your bank and speak directly to a human representative. You will need to provide specific details about the payment you want to stop, such as the check number, amount, recipient, and date. Some banks may require written permission, so be prepared to provide this information within a specified time frame, such as 14 days, after making your verbal request.
Online
With the rise of online banking, many banks now offer the convenience of making stop payment requests through their websites or mobile applications. This method can be efficient and secure, allowing you to manage your finances remotely.
Automated
Automated systems are not commonly mentioned in the context of stop payment requests. However, some banks may offer automated services or interactive voice response systems that guide you through the process of making a request.
Phone
You can often request a stop payment by calling your bank's customer service or phone banking. It is essential to provide verbal consent and specific details about the payment you wish to stop. Similar to in-person requests, you may need to follow up with a written confirmation within a specified time frame to ensure the stop payment remains in effect.
Regardless of the request method, it is crucial to act promptly, as stop payment orders must generally be made before the payment is processed. Additionally, banks typically charge a fee for this service, so be sure to familiarize yourself with your bank's policies and any associated costs.
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Discounts for online requests at some banks
Banks and credit unions usually charge a fee for stop payment orders. The fee varies depending on the bank and the type of account. The average cost of a stop payment fee at the 10 biggest banks in America is $32.40. The fee can be as high as $36 at SunTrust Bank and as low as $15 at Ally Bank when the request is made over the phone or online.
Some banks may offer a discount for online requests. For example, Chase Bank offers a $5 discount for submitting a stop payment request via its website. It is important to note that the same fee at any given bank tends to be consistent across the country, but certain fees may vary depending on the location. Therefore, it is advisable to check with the local branch for the most accurate fee amount.
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Stop payments for multiple checks at once
Stop payment orders are a critical tool for controlling your finances. They can be used to stop a written check from being cashed, to stop a series of checks that have been stolen, or to stop a company from charging automatic electronic payments after you've cancelled a subscription.
To stop payments for multiple checks at once, you will need to provide details for each check, including the check number(s), payee details, amount, date, and account number. It is also important to note that stop payment orders are only possible if the check or electronic payment hasn't cleared. Before proceeding, you should review your account to ensure that the transaction hasn't been processed.
Most financial institutions charge a fee for stop payment orders, which typically ranges from $20 to $30 each time, but this may be higher or lower depending on your bank or credit union and the type of account you have. Some banks may also offer fee waivers for certain situations, such as stolen blank checks.
To request a stop payment, you can usually call customer service, visit a branch, or, in some cases, make the request online or through your bank's mobile app. Wells Fargo, for example, allows customers to place new and manage existing stop payments by signing on to the Wells Fargo Mobile® app or Online.
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Frequently asked questions
Yes, banks do charge for stop payments. The fee varies depending on the bank and the type of account. It typically ranges from $20 to $30 but can be higher or lower. Some banks may offer a discount for submitting a request online.
You can request a stop payment by visiting a bank branch, calling customer service, or submitting a request online or via the bank's app. You'll need to provide specific details about the payment, such as the check number, amount, recipient's name, and date.
You should request a stop payment as soon as possible after realizing you need to cancel a payment. The request will usually go into effect by the end of the next business day, but the bank is allowed a reasonable amount of time to process the request. Stop payments can only be made if the payment has not already been processed.
Yes, before going to your bank, you can try to cancel the payment directly with the company you are paying. If you've already done that and they are still charging you, then you can contact your bank to stop payment.
