Stop-payment order
A consumer's instruction to their bank not to make a scheduled preauthorized debit from their account.
Under US Regulation E, a consumer may stop payment of a preauthorized electronic fund transfer from their account by notifying the financial institution. The official interpretation says the institution must honour an oral stop-payment order made at least three business days before a scheduled debit, and continue to honour it if the debit is resubmitted. An agent that pays bills should make stopping a payment as easy as starting it, across every rail it uses.
Agent Minute explains this term on 1 March 2027.
Related terms
Preauthorized transferIn US Regulation E, an electronic transfer authorised in advance to recur at substantially regular intervals.RevocationThe principal withdrawing a mandate or consent before it expires, after which no one may act on it.Direct debitA payment collected by the payee from the payer's account on the basis of the payer's prior consent.Error resolutionRegulation E's procedure for a consumer to report an error on an account and for the institution to investigate.