The stop payment is a common type of financial transaction and regularly takes place at your bank. Here are the basics of the stop payment and how it works.

Stop Payment

The process of a stop payment is very simple. This happens whenever an individual that has a checking account with a financial institution tells their financial institution not to honor a payment that they have made. For example, let's say that an individual wrote a check to someone else for the purchase of goods. After they took possession of the goods, they determined that the goods were faulty. They can then contact the bank and let them know that they need to stop payment on the check. As long as the individual has not already cashed the check, the bank should be able to accommodate this request.

Cost

In order to accomplish this, you are going to have to pay the bank a certain amount. Fees for a stop payment can vary greatly from one financial institution to the next. In most cases, you will find that the price will be somewhere between $15 and $30 per transaction. This makes it somewhat affordable but you would not want to make a habit of doing this.

blog comments powered by Disqus