Should I stop payment if a check is lost in the mail?
Contact Your Bank to Stop the Payment
Taking immediate action is crucial if a check is lost or stolen; reporting it to the bank and requesting a stop payment can minimize potential financial loss. Gathering detailed information about the missing check, such as account and check numbers, can help expedite the process when contacting the bank.
If you suspect a check has been lost or stolen, you first need to contact your bank. If the check hasn't already been cashed, then you can request that they put a stop payment on it. It's a formal request that the check not be paid out by the bank if it's deposited or presented to be cashed.
- Contact Your Bank : Reach out to your bank to explain the situation.
- Stop Payment : If the cheque is lost, consider placing a stop payment on it to prevent it from being cashed if someone finds it.
- Request a Replacement : If possible, ask the issuer of the cheque for a replacement cheque.
- Check for Mobile Deposit
Ask for a new payment.
Ask the sender to cancel the original check and send you another payment (ideally, using a method other than writing a check). Report the theft: File a report with your U.S. Postal Inspector, either online or at 877-876-2455. File an additional report with your local police.
Canceling a check may come with a fee, but it can save you from potential fraud or incorrect payments. You can cancel a check online, over the phone or in person at your bank. It's important to understand how long a cancellation request will be honored and to monitor your account for successful processing.
Checks, when mailed, are susceptible to various forms of fraud. The information printed on every check – your name, address, bank account number, and routing number – can be a goldmine for fraudsters.
Contact your bank immediately and request a stop payment order. Have the check details handy and be prepared to pay a small fee. Some banks let you complete the request online, rather than over the phone, and may charge a reduced fee.
Stop payment orders are generally legal and permitted by banking regulations. They allow you to request your bank to halt the processing of a specific cheque or electronic payment. However, it is important to understand the terms and conditions of your bank regarding stop payment, as they can vary.
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. Issuing a stop payment order on a check often costs the bank account holder a fee (generally $30 although bank policies differ), which is levied by the institution.
How often do checks get stolen in the mail?
The U.S. Postal Inspection Service (USPS) reported 300,000 complaints of mail theft in 2021, which doubled compared to the year before. According to FinCEN, banks reported a total of around 680,000 check frauds last year. This number increased from 350,000 reports the prior year.
A physical check can give scammers enough information to steal your identity and drain your bank account. If you think (or know) that someone has forged a check in your name, it's imperative that you act quickly to protect your finances and identity.
Report a Lost or Stolen Check: Contact the paying agency and report the loss or theft. You will be sent information on the check claims process, including forms you must return for processing.
If you suspect a check you've written is lost or has been stolen, you need to proactively cancel it to ensure the funds aren't withdrawn by someone other than the intended recipient. You should initiate this process with your bank by requesting a stop payment order, if the check hasn't yet been processed and paid.
Tracking Checks
If you have a tracking number, you can easily monitor the status of your mailed check using the USPS Tracking Tool. This provides real-time updates on a mailed item's whereabouts. Additionally, you can refer to USPS Typical Delivery Times to estimate when your check is expected to arrive.
The cost for placing a stop payment on a check is up to $35 and it'll remain in effect for 24 months. If you need to renew the stop payment after 24 months, an additional stop payment fee will be charged. Some consumer accounts will discount the stop payment fee.
Stop payments must be requested relatively quickly after you write the check or before the payment is scheduled, in the case of automatic debits. That's because your bank may not be able to reverse the process once the payment clears.
Generally, stop payments are used in cases when the account holder does not want the check to be paid for various reasons. Some of the reasons include stolen or lost checks, forged checks, insufficient funds to cover the check amount, or a dispute between the depositor and the party that was given the check.
A stop-payment request always results in a check being voided; however, voiding a check does not always require a stop-payment.
One common issue with mailed checks is that they get lost or waylaid in the postal system, resulting in significant delays. This can be frustrating for the sender and the recipient, as it can take weeks or even months (or, unbelievably, several years in some cases) for the check to be delivered.
What is the most secure way to mail a check?
Track the Package. Certified Mail® is the best way to send a check. The tracking capabilities associated with Certified Mail are helpful when monitoring where a check is after you've mailed it.
They're also costing us in errors, wasted effort and missed benefits, not to mention increasing the risk of fraud. Businesses that use checks have no way to track their payments and, because of the time they take to print, send and clear, they make cash management unnecessarily difficult.
Reasons to Issue a Stop Payment
There are legitimate reasons for wanting to stop a payment. These include the following: The check was made out for the wrong amount, to the wrong person, or for the wrong date. The check was mailed to the wrong payment address.
If you're concerned the check may have been stolen rather than just lost, let the issuer know. They can issue a stop payment on the check to prevent someone else from cashing it. If you have reason to believe someone has already cashed the check, you'll unfortunately need to report the incident to the police.
Keep in mind that once you have given a check to the payee, it can't be voided. At this point, the only way to prevent the check from being cashed or deposited is to ask your bank for a stop payment, which may come with a fee.
