Accept Stop Payment from Online Account?

Stop payment requests follow state accepted rules under the UCC, 4-403. The standard UCC provisions require that a stop request be "in writing" but not necessarily signed. Many banks will accept an oral request and either identify the accountholder then, or require a written follow-up in some number of days. The UCC allows you to customize this. An online stop request may be deemed acceptable by your bank, but it wouldn't necessarily be "written" under E-SIGN and UETA rules. Each of these has some exception such as "exempted requirements - the Uniform Commercial Code, as in effect in any State, other than sections 1-107 and 1-206 and Articles 2 and 2A." So long as the request is from an authorized signer or owner of the account, the oral stop request can be valid. With proper logon security you should know which person requested the stop so I see no reason the bank couldn't accept an e-request, but again, you can't rely on E-SIGN or UETA as proof.

First published on BankersOnline.com 4/22/13. Answer amended 4/23/13