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Check Processing & Payments Information

The Best Way to Handle the “Stop Payment” Risk

Posted by Kevin Walli | Wed, Oct 29, 2014 @ 10:00 AM

stop payment riskNo matter how great your product or service may be, payment disputes with customers can still arise that are difficult to resolve quickly. These can occur due to the perceived quality of work, a bad experience or – most often – a misunderstanding between you and your customer. 

Sometimes customers take matters into their own hands. Many banks offer a “stop payment” service that stops the payment of a given check. Since this is a confrontational thing for a customer to do, it usually happens when there is a disagreement regarding a service performed or dissatisfaction with a product or price. 

Here's What Happens: 

  • Your customer writes you a check and takes possession of the product or receives the service.
  • You deposit the check.
  • The customer places a “stop payment” order on their check payment.
  • You find out about it shortly thereafter.
  • You’re unable to resolve the problem with your customer.
  • You contact the customer’s bank and the only option they can give you is to wait six months, at which time the “stop payment” expires, and deposit it again – a time consuming and often futile process. 

It Doesn’t Have To Be That Way 

“Stop Payment” is also a service provided by some check processing companies to protect you from losses when this happens. The one we offer virtually eliminates the risk of never collecting on stopped checks. 

Stop Payment ProtectionWith such a service you run your customer’s check through a reader (which may also give you the ability to deposit it right then), and the processing company verifies that the account is real. But since no one except the bank and the account holder can see how much money is in the account, there’s no guarantee that a verified check will clear. 

That’s what our Stop Payment service does to earn its keep. If your customer places a stop payment on a check that you ran and we guaranteed, you will receive the revenue from us anyway. You get paid and collecting on the check becomes our problem, not yours. 

Perhaps more importantly, off-loading this stress and hassle to us frees your time so you can focus on your business and your next customer. 

Who Needs Guaranteed Protection? 

Any business can benefit from a Stop Payment check service and it works especially well for businesses that sell high-ticket items or when emergency situations exist, such as with Auto Repair and Medical/Veterinary. 

Here is a sample of industries that have proven to benefit from using Stop Payment: 

Auto Repair

Vehicle maintenance often catches people by surprise and repair costs can be just as shocking. Cars are so critical to American life – and employment – that during the recession people were more likely to keep their car payments current than their home mortgages. And since getting the repair might be so critical for a customer’s wellbeing they may overextend themselves or make a bad decision after you’re finished. Stop Payment on Check


Sometimes pets visit the vet for serious conditions and require medication or surgery to regain full health. And sometimes the pet does not recover. In this situation, a Stop Payment premium can save the vet the uncomfortable position of trying to collect payment from a family who has just lost a loved one. 

Home Furnishings and Appliances

If a customer hates the way the furniture looks in their home or thinks there’s a problem with quality or installation, you want to make sure to collect your payment first and to then handle the problem – real or perceived. 

Building Supply

When a homeowner or solo contractor stocks up for a kitchen remodel, window replacement, or flooring upgrade, successful building supply owners and managers like to know that their payment is guaranteed before sending that customer on his way. 

This premium is available for most businesses and often pays for itself with the first dispute. Learn more here.

stop payment

Topics: Check Fraud

Written by Kevin Walli

Kevin Walli is an award-winning graphic designer with 18-plus years of experience in graphic design, web design and photography. Flexible and creative with an excellent sense of humor, Kevin enjoys spending time with his family, photography, reading, music and sports.