A check is a common form of payment used when purchasing goods or paying for a service received. The entity that receives the check would usually cash it at the bank where they would receive the funds, either immediately or after a period of time, depending on the bank’s policy.

However, if a check falls into the wrong hands or goes missing, the payer needs to be proactive in canceling it to ensure the funds aren't withdrawn by someone other than the intended recipient. Find out more about the steps in involved in canceling a check.

How To Cancel a Check

A payer who finds out their signed check is lost or stolen can take a number of steps to ensure the check doesn't get cashed.

First, the bank should be directed to put a stop payment on the check. The stop payment basically instructs the financial institution not to honor the check if it hasn't already been processed. To stop payment on a check, the bank would need information such as the check number, amount of the check, and the name of the individual or corporation the check was made out to.

Official paperwork for the request will need to be submitted to the bank either through mail or in person at a branch within 14 days of verbally or electronically requesting a check to be canceled. If the bank doesn't receive written confirmation by the time the 14-day period elapses, the stop payment request won't be honored.

Most banks won’t cash a check that is 6 months old, however, if the payer is still concerned about the possibility of the check being cashed, they can extend the stop payment for another six months.

Fees for Stop Payments

Banks usually charge a fee of up to $35 for canceling a check. The cost can vary, depending on how the cancel request is made or the type of client the payer is. For example, some banks charge little to no fees if the request is made online, but a higher fee may be charged if the request is made in person or through a customer service agent on the phone. Some banks will also charge the check writers less if they hold certain types of accounts with the bank.

The fees charged may add up if more than one check is canceled. Some banks may charge the same fee for each check, while others may have a flat fee for multiple checks. The fee will also be charged on renewals after the six-month stop payment order has expired. If the check amount is less than the stop payment cost, then canceling the check might not be worth it. An account holder who loses blank checks or has them stolen might consider closing the account from which the unauthorized checks might be written. Putting a stop payment on each blank check number could mean paying a fee for each one, which would get expensive. Closing the account and opening a new one would most likely be more cost-effective.

Other financial vehicles of payment that can be canceled include money orders and electronic payments. You can't cancel a cashier’s check because the funds are guaranteed to be paid by the bank. Debit card transactions also can't be canceled, but a chargeback can be requested from the financial institution that issued the card.

Monitor Credit Reports If Checks Are Stolen

Canceling a check can prevent the unauthorized withdrawal of funds from your account. But if you've had your checks stolen, you should still monitor your credit report over the following months to avoid becoming a victim of identity theft.

Many of the best credit monitoring services could be useful in doing this, as they also offer identity-protection tools and services.

The Bottom Line

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. To stop payment on a check, go to a bank branch or contact the bank by phone or online and speak to a human being, not a recording. Request a stop payment order. Make sure to report the check number, the amount, the recipient's name, and the date on the check. Follow up in writing. Once the bank has received all the information needed to confirm the canceled check, it will be flagged for six months, after which the stop payment expires. Be aware that many banks charge a fee of up to $35 for stopping payment on a check, so if the check's amount is less than the stop payment cost, canceling it might not be worth it.