I have a few questions on stop payments:

1) Do we legally have to honor an ACH stop payment even if the customer doesn't have the funds for the stop payment fee that a bank may charge? 2)Are banks still required to keep an unlimited expiration date on ACH stop payments if the customer never comes in to sign it? 3) We put unlimited expiration dates on our bank in-house accounts that we set up stop payments on. Does anyone else do this and if so, do you ever release them if the check never comes in or do you keep it on permanently just in case it ever tries to come in? We have some stop payments over 10 years old....

Probably a state law issue. Ours are good for 6 months, and customer has to renew for another 6 months or it is dropped.

thanks

NACHA FAQ: http://www.neach.org/uploads/resources/doc/stop_payment_qa__31710.pdf

Q4. Do I really have to maintain the stop payment on our systems forever?

A. The Regulation E Official Staff Commentary states that once a financial institution has been notified that the consumer has revoked an authorization, “it must block all future payments” for the particular debit. A financial institution may decide that it is appropriate to remove the stop from its system after considering, for example, how long it is reasonably likely that the customer’s account could get debited. However, the financial institution would still violate theregulation if, after removing the stop, it fails to block a subsequent debit under the original authorization.

Appreciate it!