If you write a check and later regret handing it off to the recipient — say, because you suspect you’re the victim of a scam, you entered the wrong amount or you mailed it to an incorrect address — you may be able to cancel it with a stop-payment order, as long as it isn’t being processed yet.
First, review your account transactions online or call your bank to see whether the recipient has cashed the check. If it hasn’t cleared, act quickly to request a stop payment. You may be able to put in the order by calling your bank’s customer service department, logging into its website or visiting a branch location, says Darius Kingsley, head of consumer banking at Chase.
You will need to provide details such as the number of the check you’d like to cancel, the payee’s name, the check amount and the date. Keep in mind that a stop-payment order typically expires; depending on the bank’s rules, the order may last from about six months to two years. After you stop the payment, monitor your bank account to ensure that the check isn’t cashed.
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Typical fees to cancel a check
Stopping a payment often comes with a fee. U.S. Bank, for example, charges a standard fee of up to $35, and Chase’s stop-payment fee is up to $30.
You may avoid the fee if you have a premium checking account. For example, Chase Sapphire Checking customers, who must hold at least $75,000 combined in Chase deposit and investment accounts or pay a $25 monthly fee, aren’t charged for stop payments.
Some banks skip the fee altogether. Wells Fargo doesn’t charge for stop payments with its consumer and small business accounts, and customers of Charles Schwab Bank’s Investor Checking account pay no fee.
Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.
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