Skip to content

Accept Stop Payment from Online Account?

Answered by: 

Question: 
Can a bank accept a stop payment from a online banking account without a signature? Will the printed request be sufficient and hold up in court?
Answer: 

Stop payment requests follow state accepted rules under the UCC, 4-403. The standard UCC provisions require that a stop request be "in writing" but not necessarily signed. Many banks will accept an oral request and either identify the accountholder then, or require a written follow-up in some number of days. The UCC allows you to customize this. An online stop request may be deemed acceptable by your bank, but it wouldn't necessarily be "written" under E-SIGN and UETA rules. Each of these has some exception such as "exempted requirements - the Uniform Commercial Code, as in effect in any State, other than sections 1-107 and 1-206 and Articles 2 and 2A." So long as the request is from an authorized signer or owner of the account, the oral stop request can be valid. With proper logon security you should know which person requested the stop so I see no reason the bank couldn't accept an e-request, but again, you can't rely on E-SIGN or UETA as proof.

First published on BankersOnline.com 4/22/13. Answer amended 4/23/13

First published on 04/22/2013

Last updated on 04/23/2013

Filed under: 
Filed under security as: 
Filed under technology as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics