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ACH check conversions and stop payments

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Our depositor stopped payment on a check. We returned the check unpaid the next day. Two weeks later, her account was debited by an ACH item with the serial number and dollar amount of the stopped check. Our customer called to complain two weeks after that, when she got her statement. Is she entitled to a refund for the payment?

Yes, if your customer didn’t cancel the stop order on the check, the order was effective to stop payment of the check and ACH and image items derived from the check, even after your bank rejected the original check because of the stop order. Your customer is entitled to her money back, but ACH rules provide you a way to recover the funds, if you act quickly.


Learn more about John Burnett’s Stop That Payment! webinar.

First published on 06/13/2021

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