Countermand

AAA

DEFINITION of 'Countermand'

Cancellation, revocation or reversal of an order that has been previously issued. Countermand, in the financial world, is specifically applicable to payments; it means a customer of a bank or financial institution revoking instructions to pay, or stopping payment to another party. Countermand of payment by the customer then ends the legal duty of the bank or institution to make the payment to the party, as originally specified by the customer.

INVESTOPEDIA EXPLAINS 'Countermand'

In case of check payments, a customer can countermand the payment at any time before the check is presented, through a stop-payment order. Where electronic fund transfers are concerned, if the funds have not yet been transferred, a countermand order would cancel the original funds transfer order. If the funds have already been transferred, the financial institution would commence the process to reverse the funds transfer.

RELATED TERMS
  1. Exception Item

    A banking term used to describe a check that cannot be processed. ...
  2. Wire Transfer

    An electronic transfer of funds across a network administered ...
  3. Overdraft

    An extension of credit from a lending institution when an account ...
  4. Bounced Check

    A slang word for a check that cannot be processed because the ...
  5. Email Money Transfer - EMT

    A retail banking service that allows users to transfer funds ...
  6. Bad Check

    A check drawn on a nonexistent account or on an account with ...
Related Articles
  1. Bag The Best Bank Account
    Insurance

    Bag The Best Bank Account

  2. The Evolution Of Banking
    Credit & Loans

    The Evolution Of Banking

  3. Online Banks: Lower Costs And Little ...
    Savings

    Online Banks: Lower Costs And Little ...

  4. Your First Checking Account
    Insurance

    Your First Checking Account

comments powered by Disqus
Hot Definitions
  1. Last In, First Out - LIFO

    An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold ...
  2. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  3. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  4. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  5. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  6. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
Trading Center