In this digital age, of progress and digital payment systems, the check still remains valid because it is convenient and even preferred by merchants. However, the disappearance of one of these titles due to malicious reasons or human errors, deserves that you avoid its collection.
Reasons to cancel a bank check
Canceling a bank check for theft, loss, a typographical error or suspected fraud is the most sensible thing to do, but these conditions do not always imply resorting to stop payment .
Before, it is preferable to first try to resolve the situation with the recipient to avoid the corresponding penalty and write a new check.
For example, when it comes to a dispute over items or incomplete work that you don’t want to pay for, the matter is more complicated. Stopping payment in these circumstances can be considered check fraud .
Process to cancel a bank check
If you misspelled a check, got it lost, or someone stole it from the person who was supposed to cash it, then you should opt for cancellation . This is a simple process in which you must consider several steps:
Analyze if it is necessary to cancel it
The stop payment has a cost , so you have to know exactly what happened to the check. You may be able to talk to the beneficiary person or company to have it canceled or not processed. If you misplaced it on your own, you can take some time to see if you find it.
Check if it was charged
Combined with the above, you shouldn’t make a hasty decision without having the facts straight. When the check has already been cashed, there is little point in trying to void it.
You can check your statement online and then call the bank to find out the status. Time is a key factor here, as the bank needs at least 1 business day to stop payment .
Gather the key information
When you decide to cancel the check, you have to request the stop payment , which allows the bank to issue an alert. For this process, you must give the bank your checking account number , the exact amount written, the check number and the name of the recipient of the funds.
This can be done through the mobile app, the web, calling or visiting an agency.
Follow up in writing
The recommended way for the financial institution to honor its commitment to stop payment for 6 months is to make a written follow-up agreement for the process.
The reason for this period is due to the fact that no bank accepts a check that has expired more than 6 months . If you do not make the request in writing, the payment block could last only 14 days.
Pay the corresponding commission
Most banking institutions apply a fee when you ask for the stop payment. This charge varies from one entity to another, for which they can charge you between a minimum of $ 15 and a maximum of $ 35.
If you have a credit card or higher-level checking account, you may not have to pay that fee.
Ask for an investigation
In the event that someone cashes the check without problems and you suspect fraudulent activity, contact your bank. The purpose of an inquiry is not to hold you responsible if someone else was able to forge your signature.
What happens if a cashier’s check ( cashier’s check )
Since cashier’s checks are backed by bank funds and are considered a guaranteed payment method, the procedure is different.
It is unlikely that a financial institution will stop the payment in this case, but it can happen when you suspect theft or the security has been lost.
To cancel it, you must make a declaration of loss in which you have to allege under oath that the check is not in your possession. This action initiates a 90-day wait that, when it ends, returns the funds to you.
Take appropriate action when paying by checks
Checks in different forms will continue to be a popular method of payment, but they carry more risks than other forms .
The important thing when something bad happens with one of these securities, is to have all the facts, solve the situation if it is a simple error and act with diligence in case of fraud, theft or loss.
Using checks can be a convenient way to pay if you take the proper steps to avoid any incidents. At Busconomico we guarantee any type of payment that offers you speed and security.