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.

BREAKING DOWN '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. Stop Payment

    A request made to a financial institution to cancel a check or ...
  2. Transfer

    A change in ownership of an asset, or a movement of funds and/or ...
  3. Automatic Transfer Of Funds

    A standing banking arrangement whereby transfers from a customer's ...
  4. Finality Of Payment

    Refers to the instant that a payment to another party is completed, ...
  5. Automatic Bill Payment

    A money transfer scheduled on a predetermined date to pay a recurring ...
  6. Current Transfers

    A current account transaction in which a resident entity in one ...
Related Articles
  1. Personal Finance

    8 Low-Cost Ways To Transfer Money

    If cost is your primary concern, there are several cheap(er) ways to move funds.
  2. Investing

    5 Money Transfer Tips For Foreign Workers

    If you are working in the U.S. as a foreign worker, here are some tips for sending money back home.
  3. Tech

    How Digital Payments Will Change Commerce in 2016

    The way we transfer and spend money is constantly evolving, and 2016 is poised to expand digital payments like we've never seen before.
  4. Tech

    Is the Payment Processing Industry Evolving? (PYPL, TGT)

    Learn about the many changes in commerce and payment systems that are happening in the rapidly evolving payment processing industry.
  5. Investing

    When is a Down Payment Used?

    A down payment is an initial cash payment on an expensive good.
  6. Personal Finance

    How Credit Card Balance Transfers Work

    The pros and cons of credit card balance transfers.
  7. Investing

    When Using a Money Order Makes Sense

    Money orders are usually the least expensive way to send "cleared" funds to pay a bill (or traffic ticket). Here's how they work and what to watch out for.
  8. Insights

    Inside National Payment Systems

    Investopedia explains: The global interconnection of U.S. payment systems makes commerical and financial transfers possible.
RELATED FAQS
  1. How liquid are BlackRock mutual funds? (BLK)

    Discover if BlackRock mutual funds are liquid. Learn about the available payment options and how long it takes for a payment ... Read Answer >>
  2. How do you transfer common stock from one broker to another?

    Understand how common stock assets are transferred from broker to broker using the Automated Customer Account Transfer Service ... Read Answer >>
  3. What happens when a company buys back its shares?

    When a company performs a share buyback, there are a few things that the company can do with the securities they buy back. ... Read Answer >>
  4. How do you make working capital adjustments in transfer pricing?

    Understand how working capital adjustments are applicable to transfer pricing. Learn about the arm's length standard and ... Read Answer >>
Hot Definitions
  1. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an ...
  2. Salvage Value

    The estimated value that an asset will realize upon its sale at the end of its useful life. The value is used in accounting ...
  3. Cryptocurrency

    A digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of ...
  4. Promissory Note

    A financial instrument that contains a written promise by one party to pay another party a definite sum of money either on ...
  5. SEC Form 13F

    A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment ...
  6. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
Trading Center