Cheque Stop Payment Letter



What is a cheque stop payment letter?

Cheque Stop Payment Letter is a formal letter written to the cheque issuer’s bank requesting to stop the payment of the cheque issued. A stop payment is a request made to a bank or a financial institution to cancel a cheque or payment that has not been processed yet. A stop payment order is issued by the account holder, and can only be enacted if the cheque or payment has not already been processed by the recipient.

How to use it?

A cheque stop payment can be used in several scenarios:
-When the cheque has been issued to a wrong account
-When the wrong amount was written
-When the issuer cancels the order/ didn’t get the expected delivery after he has posted the cheque.
The letter contains the issuer’s details like name, account number, the details of the receiver and reasons why he needs to make a stop payment.

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