You can not turn back time, but there’s a means to reverse the mistake of releasing a bad check. Whether you wish to put a hold on a payment that’ll sustain an insufficient funds cost or put a stop on an incorrect check, you can reverse the situation with a stop payment – which, of course, comes at an expense. Right here’s exactly what you’ll need to pay for a stop payment on a check at the 10 most significant banks in America.

Stop Payment Fee Comparison at Top 10 U.S. Banks: Summer 2014

Stop payment

A stop payment order is a request made to the monetary institution to cancel a check or payment made by the account holder. Stop payment orders can be made on any check, telephone, preauthorized transfer or Visa debit card recurring debits. It isn’t possible to position a stop payment on money equivalent products such as cashier’s checks and cash orders (with the exception of a lost or deceitful cashier’s check).

Placing a stop payment is the quickest and most reliable technique to avoid the payments from going through, which is a why every consumer should understand how much it costs. Did we point out that it’s among the most expensive charges charged at a bank?

Here are the stop payment costs at the 10 biggest U.S. banks:

Bank Stop Payment Fee Locations
Bank of America $30 Find branches near you
Wells Fargo $31 Find branches near you
Chase $30 ($25 online or phone) Find branches near you
Citibank $30 Find branches near you
U.S. Bank $35 Find branches near you
PNC Bank $33 Find branches near you
Capital One $35 Find branches near you
TD Bank $30 Find branches near you
BB&T $34 Find branches near you
SunTrust Bank $36 Find branches near you
AVERAGE $32.40

According to a July banking analysis by MyBankTracker.com, the average expense of a stop payment fee at the 10 biggest banks in America is $32.40. It’ll cost you anywhere in between a high of $36 at SunTrust Bank to a low of $25 at Chase Bank – when the demand is made over the phone or online.

Note that these figures are reflective of the costs for the New York region. Though the same fee at any provided bank tends to be constant across the country, specific costs may differ relying on where you live. We recommend that you check with your local branch for the most accurate cost quantity.

How to request a stop payment

First of all, it’s necessary to note that a stop payment can only be enacted if the check or payment hasn’t already been processed by the recipient. In the case of stop payments on preauthorized withdrawals, you need to inform your bank at least 3 business days before the electronic fund transfer is set up to be made by the bank.

To request a stop payment on a check or a payment from a bank, you can either call customer support or see a branch personally (in many cases you can likewise log into your account online). Some banks might differ on the costs of stop payments depending upon the technique you use. In the case of Chase Bank, you’ll get a $5 price cut for putting in your stop payment request by means of its site.

Understand that a stop payment couldn’t be put instantly following the request. In truth, the bank is enabled a sensible period of time to process the stop payment after the request has been made. This waiting time depends upon a person’s specific circumstances, but the stop payment demand will usually enter into impact by the end of the next company day (following the day that the demand was made).

Stop payment requests coming from any person with signing authority on the primary account – despite who composed the actual check or offered the other withdrawal order – will be recognized by the bank.

Requested information

For the bank to recognize the stop demand on a check or other withdrawal orders, you should be ready to offer the following details: your name, contact number, address, account number, factor for stop payment demand, the date, the quantity of the payment, the name of the payee, and the check number (or in the case of an automated debit payment, the name of the company and the exact quantity).

Due to the reality that stop payment orders are processed by a computer, it’s important that all the information provided at the time of the demand is accurate.

Reasons to ask for a stop payment

There are several factors why a stop payment order might be asked for. For instance, the account holder may have sent out a check for the wrong quantity, canceled a purchase after sending by mail off the check, or realized that the recipient of the check is undependable.

The high price of a stop payment may deserve the cost if it can potentially conserve you from getting a big headache or losing even more cash. As an example, you could want to put a hang on a check if you know that you don’t have adequate funds to pay for that amount in your savings account. Is it worth paying the $30 to stop a payment in this situation? In most cases, yes!

Stop payment cost vs. overdraft fee

If the check that you wrote bounces, then you’ll certainly either be responsible for a non-sufficient charge or an overdraft cost – depending upon whether your bank decides to pay for an overdraft on a product that you charged to your account without having enough readily available funds to cover the purchase. Lots of consumers erroneously believe that stop payment and overdraft costs are the exact same thing as most banks charge the very same fee amount for the two services.

According to a July banking analysis by MyBankTracker.com, the typical overdraft fee charged for each deal that led to an unfavorable account balance was $35.20 at the 10 biggest banks in America – ranging from $36 at PNC and SunTrust Bank to $34 at Chase and CitiBank.

As you can, it winds up being less expensive for the majority of banking customers to spend for a stop payment in order to avoid getting fined a more pricey overdraft charge. All of the 10 most significant U.S. banks provide stop payment at a lower cost than overdraft charges – other than at Capital One and SunTrust Bank, where the two fees are equal.

In addition, it must be kept in mind that an overdraft charge isn’t a one-time charge. That indicates that if the bank does decide to shield you with an overdraft service, you must make it your concern to repay it as quickly as possible if you don’t wish to be fined an extended overdraft charge.

An prolonged overdraft cost is examined when your account has a negative balance for five consecutive business days. If you accrue more than five overdrafts within a one year period, some banks may charge an additional cost for each overdraft or returned item on your account.

In both cases, the payee of your bad check will certainly likewise be fined a return deposit charge.

Stop payment expiration

Stop payment has a few downsides too. Unfortunately, a stop payment demand isn’t indefinite and will generally end after a 6-month duration. Make sure to consult your count on precisely how long the stop payment is valid for.

To keep the hang on the check following that period, you must make another demand to restore the stop payment on a bad check for an additional cost.