How to cancel a check?

In this digital era of progress and digital payment systems, checks still remain valid because they are convenient and even preferred by businesses. However, the disappearance of one of these titles for malicious reasons or human error, merits that you avoid its cashing.

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If you want to know how to cancel a bank check, whether it is a standard check, a cashier's check, or a certified check, read on.

Reasons to cancel a check

Canceling a check due to its theft, loss, a typographical error or suspected fraud is the most sensible thing to do, but these conditions do not always imply resorting to stop payment.

It is preferable to first try to resolve the situation with the recipient to avoid the corresponding penalty and write a new check.

For example, when there is a dispute over items or incomplete work that you do not want to pay for, the matter is more complicated. Stopping payment in these circumstances may be considered check fraud.

In this situation, it is best to consult a lawyer to get advice on how to proceed and avoid getting into legal trouble.

Process for canceling a check

If you misspelled a check, it was lost, or someone stole it from the person who was supposed to cash it, then you should opt for cancellation. This is a simple process in which you should consider several steps:

Analyze if it is necessary to cancel it

The stop payment has a cost, so you need to know exactly what happened to the check. You may be able to talk to the person or company to have the check voided or not processed. If you misplaced it on your own, you can take some time to see if you can find it.

Check if it was cashed

In combination with the above, you should not make a hasty decision without having the facts straight. When the check has already been cashed, there is little point in trying to void it.

You can check your statement online and then call the bank to find out the status. Time is a key factor here, as the bank needs at least 1 business day to stop payment.

Gather key information

When you decide to cancel the check, you have to request the stop payment, which allows the bank to issue an alert. For this process, you need to give the bank your checking account number, the exact amount written, the check number and the name of the recipient of the funds.

This can be done through the bank mobile app, the web, by calling or visiting an agency.

Follow up in writing

The recommended way for the financial institution to honor its commitment to stop payment for 6 months is to make a written follow-up agreement for the process.

The rationale for this lapse is because no bank will accept a check that is more than 6 months old. If you do not make the request in writing, the stop payment could last only 14 days.

Pay the corresponding fee

Most banking institutions apply a fee when you request the stop payment. This fee varies from one institution to another, so you may be charged between a minimum of $15 and a maximum of $35.

Ask for an investigation

If someone cashes the check and you suspect fraud, contact your bank. The purpose of an inquiry is to ensure that you are not held responsible if someone else forged your signature.

What if it is a cashier's check?

Since cashier's checks are backed by the bank's funds and are considered a guaranteed method of payment, the procedure is different.

It is unlikely that a financial institution will stop payment in this case, but it may happen when you suspect a theft or the security has been lost.

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To cancel, you must file a declaration of loss in which you must allege under oath that the check is not in your possession. This action initiates a 90-day wait, which, when completed, will result in the funds being returned to you.

If the imposter cashes the check during this period, you should be alert to notify the bank immediately.

Take appropriate action when paying with checks

Checks in various forms will continue to be a popular method of payment, but they have more risks than other forms.

The important thing to do when something bad happens with one of these securities is to have all the facts, to resolve the situation if it is a simple mistake, and to act diligently in the event of fraud, theft or loss.

Using checks can be a convenient way to pay if you take the appropriate measures to avoid any incident. At Busconomico we endorse any type of payment that offers you speed and security.

Español: ¿Cómo cancelar un cheque bancario?