What is a stop payment?

What is a stop payment?

• A. Requesting a new check be issued
• B. Contacting your bank to cancel a check you wrote
• C. Depositing funds into a different account
• D. Cashing a check offline

Answer: (B)

A stop payment is a service you place with your bank to keep a check you wrote from being paid. You’d use this if the check was lost or stolen, you suspect fraud, or you simply don’t want the recipient to cash it. To set it up, you tell the bank the check’s details—such as the check number, amount, date, and who it was written to—and you may need to put the request in writing and pay a fee. It only works for checks that haven’t been cashed yet; if the check has already cleared, a stop payment likely won’t prevent payment. This option specifically describes contacting your bank to cancel a check you wrote, which is not about issuing a new check, moving funds to another account, or cashing a check.

A stop payment is a service you place with your bank to keep a check you wrote from being paid. You’d use this if the check was lost or stolen, you suspect fraud, or you simply don’t want the recipient to cash it. To set it up, you tell the bank the check’s details—such as the check number, amount, date, and who it was written to—and you may need to put the request in writing and pay a fee. It only works for checks that haven’t been cashed yet; if the check has already cleared, a stop payment likely won’t prevent payment. This option specifically describes contacting your bank to cancel a check you wrote, which is not about issuing a new check, moving funds to another account, or cashing a check.