How to Stop Payment & Replace a Check

Virtually all banks and credit unions offer stop payment services.

Stopping payment on a check and issuing a replacement check can help you avoid a series of bounced checks. Consider, for example, that you and your partner have failed to communicate regarding checks written on your joint account. You realize that a check written for $500 is going to cause a number of smaller checks to bounce, potentially resulting in expensive overdraft fees. You place a stop payment on the $500 check and issue a replacement check when the funds are available in your account. The stop payment request allows the smaller checks to clear and requires you to pay only the stop payment fee.

Instructions

1. Call your bank or credit union at the customer service number listed on your bank statement or on the back of your debit card. Tell the representative that you wish to stop payment on a check written on your checking account. Provide the representative with the amount of the check and the name of the payee. Ask if the bank has processed the check. If the check has not cleared, make a formal stop payment request and agree to have the stop payment fee deducted from your checking account.

2. Submit your stop payment request online if you prefer not to place the order by telephone. Navigate to your bank's website and log in to your account. Click on the customer service tab to find the online option for stopping a payment.

3. Contact the bank the next business day to confirm that the stop payment has been processed.

4. Issue a replacement check to the original payee by writing a new check when funds are available in your account.

Tips & Warnings

• Fees for stopped payments and bounced checks can vary depending on the bank. The MSN Money website reported in 2010 that banks and credit unions generally charge around $35 for an overdraft caused by a bounced check. Stop payment fees generally range between $30 and $35.

• Merchants have the right to redeposit a check that has been returned for insufficient funds, which can result in additional overdraft charges.

References

• University Credit Union: Checking Account Stop Payment
• Bankrate: Five Ways To Avoid Bouncing A Check
• MSN Money: Is Your Bank About To Fire You?