Quote:

---

The “model language” for stop payments only addresses pre-authorized (recurring) transfers. Customer may be mislead into thinking the 3-business day notice requirement applies to TEL, WEB, ARC and POP transactions (which it does not).


ACH rules require that stops be accepted on these items if received in time for the bank to act on them.


Suggestion: Consult with counsel and consider adding language like "You may also stop payment on some one-time electronic payments, such as those you authorize on the Internet or telephone, or those made by converting your checks to electronic payments. We must receive these requests before the payment posts to your account."

---

Quote:

---

The NACHA rules specifically provide that these converted checks remain subject to stop payment rules up to the time of final posting, just as if they were checks. (They are not, for example, subject to Reg. E's 3-day advance notice requirement for pre-authorized debits.)

We have run into the same question, and we believe it advisable to place a stop on both entry points (MICR and ACH) for any check that was mailed to a billing creditor.

It's desirable, IMHO, that vendors step up to the plate and provide single-stop capability that will cover both MICR items and converted checks. Until then, though, we'll have to put double stops in place.

---