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Online Stop Payment

Answered by: 
John Burnett

Question: 
Regarding a check stop payment request, after a customer has logged into our online banking site they have the ability to submit a stop payment request. Assuming they provide the required information to put a stop payment in effect - does the fact that the request was generated within the secured site allow us to forgo getting a signed stop payment order?
Answer: 

That's really a risk management call for the bank to make. You need to evaluate the risk of stopping payment based on an imposter's order (in which case you could face a wrongful dishonor claim), the risk of the data in the stop order being inaccurate (posting a disclaimer on your online banking site's stop payment page may mitigate that risk), and other possible problems. You can modify the language of your deposit contract or online banking contract (ask your attorney) to eliminate the need for a separate, paper stop order. You may also be able to legally consider the stop placed via your secure site a "written" order.

First published on BankersOnline.com 6/12/06

First published on 06/12/2006

Filed under: 
Technology
Filed under technology as: 
Management
Online Banking

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