ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A stop-payment on a check is how you ask your bank to cancel a check before it is processed. After you request a stop payment, the bank will flag the check you specified, and if anyone tries to cash it or deposit it, they’ll be rejected.

Detailed explanation-2: -A stop-payment order is a request that the bank not honor a specific check. The usual reason for stopping payment is that the check has been lost or stolen. Most banks charge a fee for stopping payment on a check.

Detailed explanation-3: -A stop payment is a request from an account holder to a financial institution, such as a bank or credit union, to not process a payment. The payment may be a paper check or an automatic debit payment, like those you set up for a recurring subscription or bill.

Detailed explanation-4: -A stop payment is a formal request made to a financial institution to cancel a check or payment that has not yet been processed. A stop payment order is issued by the account holder and can only be enacted if the check or payment has not already been processed by the recipient.

Detailed explanation-5: -Reasons to Stop Payment on a Check A lost or stolen check. Insufficient funds in a bank account. A dispute over a purchase or services rendered.