Verbal Stop Pay

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Question:

When placing a stop payment on a check, how many days is the hold if the customer only gives a verbal authorization? Is it the same amount of days for ACH items?

Answer:

If your state follows the "standard" wording for section 4-403 of the Uniform Commercial Code (UCC), an oral stop order on a check is valid for 14 calendar days unless it is sooner replaced with a written order. A few states do not specifically provide for oral stop orders in their UCC wording. NACHA rules on stop payments of ACH transfers provide for oral stop orders, with the same 14-calendar-day period of effectiveness pending replacement by a written order.

First published on BankersOnline.com 1/29/07