A check is a common form of paymentused when purchasing goods or payingfor a service received. The entity that receives the check would usually cash it at the bank where they would receive the funds, either immediately or after a period of time, depending on the bank’s policy.
However, if acheck falls into the wrong hands or goes missing, the payer needs to be proactive in canceling it to ensurethe funds aren't withdrawn by someone other than the intended recipient. Find out more about the steps in involved in canceling a check.
Key Takeaways
- A check is a form of paymentused when purchasing goods or payingfor a service received.
- The entity that receives the check would usually cash it at the bank where they would receive the funds.
- If a check is misappropriated or is lost, the payer needs to be proactive in canceling it to ensurethe funds aren't withdrawn by someone other than the intended recipient.
- Once you think a check you've written is missing or has been stolen, you should contact your bank and request a stop payment order, if the check hasn't yet been processed and paid.
How ToCancel a Check
A payerwho finds out their signed check is lost or stolencan take a number of steps to ensure the check doesn't get cashed.
First, thebank should be directed to put a stop payment on the check. The stop payment basically instructsthe financial institution not to honor the check if ithasn't already been processed. Tostop payment on a check, the bank would need information such as the check number, amount of the check,and the name of the individual or corporation the check was made out to.
Official paperwork for the request will need to be submitted to the bank either through mail or in person at a branch within 14 days of verbally or electronically requesting a check to be canceled. If the bank doesn't receive written confirmation by the time the 14-day period elapses, thestop payment request won't be honored.
When the bank has received all the necessary information to confirm the canceled check, itwill be flagged for six months, after which the stop payment expires.
Most banks won’t cash a check that is 6 months old,however, if the payer is still concerned about the possibility of the check being cashed, theycan extend the stop payment for another six months.
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Fees for Stop Payments
Banks usually charge a fee of up to $35 for canceling a check. The cost can vary, depending on how the cancel request is made or the type of client the payer is. For example, some banks charge little to no fees if the request is made online, but ahigher fee may be charged if the request is made in person or through a customer service agent on the phone. Some banks will also charge the check writers less if theyholdcertain types ofaccounts with the bank.
The fees charged mayadd up if more than one check is canceled. Some banks may charge the same fee for each check, while others may have a flat fee for multiple checks. The fee will also be charged on renewals after the six-month stop payment orderhasexpired. If the check amount is less than the stop payment cost, then canceling the check might not be worth it.
An account holder who losesblank checks or hasthem stolen might consider closing the account from which the unauthorized checks might be written. Putting a stop payment on each blank check number could mean paying a fee for each one, which would get expensive. Closing the account andopening a new onewould most likelybe more cost-effective.
Other financial vehicles of payment that can be canceled include money orders and electronic payments. You can't cancel a cashier’s check because the funds are guaranteed to be paid by the bank. Debit card transactions also can't be canceled, but a chargeback can be requested from the financial institution that issued the card.
Monitor Credit Reports If Checks Are Stolen
Canceling a check can prevent the unauthorized withdrawal of funds from your account. But if you've had your checks stolen, you should still monitor your credit report over the following months to avoidbecominga victim of identity theft.
Many of the best credit monitoring services could be useful in doing this, as they also offer identity-protection tools and services.
What Is the Best Way To Cancel a Check?
To stop payment on a check, go to a bank branch or contact the bank by phone and speak to a human, not a recording. Request a stop payment order. Make sure to report the check number, the amount, the recipient's name, and the date on the check. Follow up in writing.
Can You Cancel a Check at Any Time?
First, you should see whether the check has cleared yet. Usually,you can stop payment on a check with a stop payment order only if your bank hasn't paid the amount. As you start the process, log in to your bank account and look through your transaction history to see if the check has posted.
How Long After You Write a Check Can You Cancel It?
In general, stopping payment on a check is possible atany time before the check is cashed. Once the check has been cashed by its recipient, the person who wrote or authorized the check won't be able to make a stop payment with their bank. When the bank has all the needed information to confirm the canceled check, itwill be flagged for six months, after which the stop payment expires.
The Bottom Line
If you suspect a check you've written is lost or has been stolen, you need to proactively cancel it to ensurethe funds aren't withdrawn by someone other than the intended recipient. You should initiate this process with your bank by requesting a stop payment order, if the check hasn't yet been processed and paid.
To stop payment on a check, go to a bank branch or contact the bank by phone or online and speak to a human being, not a recording. Request a stop payment order. Make sure to report the check number, the amount, the recipient's name, and the date on the check. Follow up in writing. Once the bank has received all the information needed to confirm the canceled check, itwill be flagged for six months, after which the stop payment expires.
Be aware that many banks charge a fee of up to $35 for stopping payment on a check, so if the check's amount is less than the stop payment cost, canceling it might not be worth it.
