{{Short description|Request to cancel a payment}} {{more citations needed|date=January 2024}} 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.<ref>{{Cite web |title=What Is a Stop Payment And How Does It Work? – Forbes Advisor |url=https://www.forbes.com/advisor/banking/stop-payment/ |access-date=2024-01-08 |website=www.forbes.com|date=14 June 2022 }}</ref>
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.
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Category:Banking terms