What is Stop Payment?

A stop payment order is a consumer's directive to their bank or credit union to refuse payment on a specific check or a preauthorized ACH debit before the item clears. The order must identify the item with sufficient particularity — typically the check number, date, exact dollar amount, and payee name — and must be received by the institution before the item is presented for payment. Stop payment orders are governed by the Uniform Commercial Code (UCC § 4-403) and, for electronic debits, by the Electronic Fund Transfer Act (Regulation E).

For paper checks, the stop payment order is typically valid for six months under the UCC and may be renewed for additional six-month periods. The institution charges a fee — commonly $25 to $35 — for processing the order. A stop payment is not a guarantee that the check will not be paid; the bank's obligation is to exercise reasonable care in intercepting the item. If the check is paid despite a timely and properly issued stop payment order, the bank may be liable for the amount of the item and any consequential damages.

For ACH debits, Regulation E grants consumers the right to stop payment on a preauthorized electronic transfer if the institution receives the stop payment order at least three business days before the scheduled transfer date. The stop payment order must be made orally or in writing, and the institution may require written confirmation within 14 days of an oral order. ACH stop payments apply only to a single transfer or all future transfers from a specific originator — not to a range of transfers from different originators.