A stop payment is an order by a customer of a financial institution (bank, savings bank, or credit union) or to a money order issuer to refuse to pay a check or draft drawn on the customer's account, and to return the draft to the depositor unpaid.^[1]

Stop payments are used in cases where the depositor does not want the check to be paid. The reasons can include:

• The customer has a dispute with the party that the check was given to, and wants to withhold payment.
• The check was lost or stolen.
• The check was forged or the amount was raised.
• The customer does not have enough money to cover the check (typically, a stop payment on a check has less of a dishonorable appearance than a check that bounces).

Stop payments are charged a fee by the customer's financial institution, usually the same as a fee for a bounced check. The customer can usually call their financial institution to ask for an immediate stop payment to be issued, with the requirement they come in within a few days and sign a written order.

References