stop payment

Thân thiện

A customer submits a stop payment order at the bank.

Definition

Noun: An instruction given by the account holder (depositor) to their bank, directing the bank not to honor or pay a specific check that has been written. This order prevents the funds from being withdrawn from the account when the check is presented for payment.

Usage

This term is used specifically in the context of banking and personal finance. It refers to a formal request to cancel a single check before it is cashed.

Examples

• The customer issued a stop payment on the check after the goods were not delivered.
• You may incur a fee from your bank for placing a stop payment order.
• To prevent the transaction, she had to request a stop payment immediately.

Advanced Usage

• "to place/put a stop payment on a check": This is the standard phrase used to describe the action of instructing the bank.
  • Example: I need to place a stop payment on check number 1021.
• The term is often part of the compound noun "stop-payment order".
  • Example: The bank processed the stop-payment order within 24 hours.

Variants and Related Words

• Stop-payment order (n): The formal instruction or request itself. This is a common compound term.
• Cancel a check (verb phrase): A more general phrase for stopping payment on a check.

Synonyms

• Payment block
• Check cancellation (instruction)

Important Notes

A stop payment is a preventative measure for a specific check. It is different from closing an account or freezing all funds. It is typically used if a check is lost, stolen, or written for a disputed transaction.

Học thuật

Noun

1. a depositor's order to a bank to refuse payment on a check