Stop Payment
An order preventing a bank from processing a specified cheque or payment.
Detailed Description
Stop Payment
What is a stop payment?
A stop payment is a request made by an account holder to prevent the processing of a specific check or electronic payment.
Why would someone initiate a stop payment?
An account holder may initiate a stop payment to protect their funds from fraud, errors, or disputes.
How long is a stop payment effective?
Typically, a stop payment order is effective for six months but can sometimes be extended.
Are there fees associated with stop payments?
Yes, most banks charge a fee for processing a stop payment order, which can range from $20 to $35 or more.
Does a stop payment affect credit scores?
A stop payment itself does not directly affect credit scores, but unresolved disputes may lead to negative impacts.