When someone stops payment on a check, their bank may charge them to do so, according to Bankrate. As of 2005, these charges ranged between $18 and $32 among the largest banks.Know More
In addition to different banks imposing different charges, the charges vary between states. For example, Bank of America customers living in Maryland pay more than those living in California. According to those working in the industry, the fees are so high because of the administrative effort that goes into finding the payment and stopping it.
In order for a stop check order to work, the customer needs to execute it in a timely manner. In addition, they must give an accurate description of the check's recipient and how much it is worth. If the customer fails to give correct information, the bank is not liable for any money paid. Customers who call their bank and issue an oral stop check order can expect it to expire after 14 days, unless they reissue the order. In contrast, customers who put the order into writing can expect it to last for 6 months. Customers who have lost the check in question should renew their order until they find it. In addition, customers who lose a check book may wish to close their account and open a new one to prevent fraudulent checks.Learn more about Personal Banking
Reason code 3 in Certegy's check codes means that the payment system flags a transaction for notice because the check originates from a suspect banking institution or from a country that has a lot of check fraud, notes Strong Estate. Certegy is a check-authorization service used by merchants.Full Answer >
A dishonored check is defined as a check that has been presented to a banking institution for payment and has been returned to the depositor due to insufficient funds. Dishonored checks are also referred to as bounced checks or returned checks.Full Answer >
Online bill payment uses the electronic transfer of funds to pay bills without having to write a check or mail a voucher. Companies may make online payment options available to their customers. Alternatively, a bank or another third party may be set up to pay a variety of bills.Full Answer >
Cashing a check without a bank account may be accomplished by visiting the check-issuing bank, a grocery store or a check-cashing institution. Another option is to sign the check over to a friend or family member, although this practice is not always accepted by financial institutions.Full Answer >