5.4 Stop Payments

A Stop Payment is a request made by account holder to their bank, instructing the bank not to honor or process a specific check for any transaction.

This instruction can be based on any of the following:

• A single check number
• A range of check numbers
• The amount for which a check 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 check based transaction, the system validates if a stop payment instruction exists against it. If yes, then payment against that check is stopped.

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

When a stop payment instruction (check 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 If the stop payment instruction is withdrawn, the status is updated accordingly. If a customer requests to stop payment of multiple checks, the ‘Stop Payment’ option remains active until the last request is canceled. If the last stop payment instruction is canceled, then the option is updated (not available) immediately.

Here, the user has to define the following:

• Account number on which the user is enforcing a stop payment
• Whether stop payment is being defined against checks or an amount
• If stop payment is based on check then the start and end check numbers
• If stop payment is based on amount then the check 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 sub-topics:

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