Stop Payment

AAA

DEFINITION of 'Stop Payment'

A request made to a financial institution to cancel a check or payment that has not been processed yet. A stop payment order is issued by the account holder, and can only be enacted if the check or payment has not already been processed by the recipient.

INVESTOPEDIA EXPLAINS 'Stop Payment'

Issuing a stop payment order often costs the bank account holder a fee, which is levied by the financial institution. There are several reasons that a stop payment order may be requested. For example, the account holder may have sent a check for the wrong amount, or may have canceled a purchase after having put the check in the mail.

RELATED TERMS
  1. Exception Item

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

    A written, dated and signed instrument that contains an unconditional ...
  3. Checking Account

    A transactional deposit account held at a financial institution ...
  4. Bounced Check

    A slang word for a check that cannot be processed because the ...
  5. Insufficient Funds

    Occurs when an account cannot provide adequate funds to satisfy ...
  6. Account Hold

    Deposits that are delayed before being credited to an account, ...
Related Articles
  1. Bag The Best Bank Account
    Insurance

    Bag The Best Bank Account

  2. Your First Checking Account
    Insurance

    Your First Checking Account

  3. Opening Your Child's First Bank Account
    Personal Finance

    Opening Your Child's First Bank Account

  4. Procrastinator's Guide To Bill Payment
    Personal Finance

    Procrastinator's Guide To Bill Payment

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. 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. ...
  3. 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 ...
  4. 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. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center