Cheque Stop Payment Letter
Cheque Stop Payment Letter is a formal letter written to the cheque issuer’s bank requesting to stop the payment of the cheque issued. A stop payment is a request made to a bank or a financial institution to cancel a cheque or payment that has not been processed yet. A stop payment order is issued by the account holder, and can only be enacted if the cheque or payment has not already been processed by the recipient.
How to use it?
A cheque stop payment can be used in several scenarios:
-When the cheque has been issued to a wrong account
-When the wrong amount was written
-When the issuer cancels the order/ didn’t get the expected delivery after he has posted the cheque.
The letter contains the issuer’s details like name, account number, the details of the receiver and reasons why he needs to make a stop payment.
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This cheque stop payment letter format and generator can be used by a cheque issuer to draft a professional cheque stop payment letter addressed to the Banker. Once, the cheque stop payment letter is generated, it can be printed on the letterhead of the business and delivered to the Banker to whom the cheque will be presented for collection. It is a common practice to affix the seal of the business and sign the cheque stop payment letter before delivering it to the Banker.
This cheque stop payment letter can be printed on the letterhead of the business or on a plain white paper with the logo or information about the Company. Cheque stop payment letter must be signed by the person issuing the cheque and must be addressed to the Banker to whom the cheque will be presented for collection. One copy of the letter can be retained by the cheque issuer while the other copy is delivered to the Banker with acknowledgement.