4.5 Stop Payments

A Stop Payment maintained in the ‘Stop Payments’ table is an instruction from the customer to the bank to place a stop payment (hold) on the cheque.

This instruction can be based on any of the following:

• A single Cheque number
• A range of Cheque numbers
• The amount for which the Cheque is drawn

When a stop payment is affected, the stop payment status in the ‘Customer Accounts Maintenance’ table is updated to reflect the existence of a stop payment instruction for the customer account. Each time a data entry initiates a Cheque based transaction, the system validates if a stop payment instruction exists against it. If yes, then payment against that Cheque is stopped.

Stop payment for a Cheque can be specified for a defined period of time. You can also maintain a stop payment with no expiry date, that is, the instruction remains effective until revoked.

When a stop payment instruction (cheque or money) is issued to an account number, the system automatically selects the Stop Payment check box. If the stop payment instruction is withdrawn, the status will be updated accordingly. If a customer requests to stop payment of multiple cheques, the ‘Stop Payment’ option remains active until the last request is also canceled. If the last stop payment instruction is canceled, the option will be updated (disabled) immediately.

Here you define the following:

• Account number on which you are enforcing a stop payment
• Whether stop payment is being defined against Cheque/Cheques or an amount
• If stop payment is based on Cheque then the start and end Cheque numbers
• If stop payment is based on amount then the Cheque amount
• Amount for which the stop payment has been enforced
• Period for which this stop payment should remain effective
• Any reason applicable to this stop payment. It could be the purpose for which it has been enforced

Any number of stop payment instructions can be maintained for an account. With every stop payment instruction on an account, the system displays the stop payment number. This number denotes the number of current stop payment records being maintained for this account.

This topic contains the following subtopics:

• Create Stop Payments
  This topic describes the systematic instructions to create stop payments.
• Amend Stop Payments
  This topic describes the systematic instructions to amend stop payments.
• Close Stop Payments
  This topic describes the systematic instructions to close stop payments.