How to Stop an ACH Payment

To stop an ACH payment, act quickly and accurately to prevent funds from leaving your account. Identify the payment details, like amount, recipient, and scheduled date, and then contact your bank or payment processor immediately to request a stop payment order. Confirm the stop with a written acknowledgment or confirmation number, notify the recipient about the halted payment, and document every step for your records.

Identify the Payment You Need to Stop

The first step is to clearly identify the ACH payment you want to stop.

What to check:

• Payment amount
• Recipient (vendor, client, or service)
• Scheduled payment date
• ACH reference number or invoice number

Example: A contractor realizes that a $2,500 ACH payment scheduled for March 20 to a supplier is incorrect due to a billing error.

Act Quickly

ACH payments typically process within 1–2 business days. Timing is very important because once the payment is processed, stopping it becomes more complicated.

Best practices:

• Contact your bank immediately upon noticing an error.
• Have all payment details ready to ensure quick action.

Example Table:

Contact Your Bank or Payment Processor

Most banks provide a formal process for stopping ACH payments.

Steps:

1. Call your bank or log in to your online banking platform.
2. Provide payment details: amount, recipient, scheduled date, and reference number.
3. Request a stop payment order.

Fees: Some banks may charge a small fee for stop payment requests, typically $25–$35 per transaction.

Example: A landscaping business calls its bank to stop a duplicate $1,200 ACH payment. The bank places a stop payment immediately, preventing the funds from transferring.

Confirm the Stop Payment

After submitting a stop request, confirm that the bank has successfully halted the payment.

Tips:

• Get a confirmation number or written acknowledgment.
• Monitor your account to ensure the funds are not withdrawn.
• Follow up within 24 hours for high-value payments.

Example: The contractor receives an email confirmation from the bank indicating the $2,500 payment has been stopped successfully.

Notify the Recipient

Communicating with the payee is a professional way to prevent misunderstandings.

Points to include:

• Reason for stopping the payment (error, duplicate, canceled service)
• Instructions for re-submitting payment if applicable
• Assurance that you will correct the issue promptly

Example: The contractor emails the supplier: “The $2,500 payment scheduled for March 20 was stopped due to a billing error. We will issue a corrected payment of $2,300 by March 22.”

Keep Detailed Records

Documenting the stop payment process helps in case of disputes or audits.

What to document:

• Date and time of stop payment request
• Bank confirmation number
• Communication with the recipient
• Reason for stopping the payment

Example:

Prevent Future Errors

Once the payment is stopped, implement practices to reduce the risk of needing stop payments again.

Tips:

• Double-check invoice details before initiating ACH payments
• Set up payment approvals for large transactions
• Use accounting software that flags duplicate or incorrect payments
• Keep clear records of recurring ACH authorizations

Example: A contractor implements a review process where all ACH payments above $1,000 require two approvals, preventing future accidental payments.