Answers about Stop Payment Orders

Can a bank place a stop payment on an electronic funds transfer?

Yes. You may stop payment of a preauthorized withdrawal (recurring monthly payments to a third party such as a life insurance company). You can do this by notifying the bank within 3 business days before the electronic funds transfer is scheduled to be made.

You can notify the bank orally or in writing. However, if you notify the bank orally, the bank may require that you then provide written confirmation within 14 days. If you fail to provide written notice by the deadline, the oral stop payment order will no longer be effective.