stop-payment

Vocabulary Word

Definition

'Stop-payment' is a finance term used when you request your bank not to pay a specific check or payment you've already scheduled. It often involves some kind of fee.

Examples in Different Contexts

In banking services, a stop payment is a request made by an account holder to cancel a check or payment transaction before it is processed. A bank manager might say, 'Stop payment orders are often placed in cases of lost checks or disputes over payment amounts, providing a layer of financial security for our customers.'

Practice Scenarios

Accounting

Scenario:

This client has a discrepancy in their accounts. What immediate measures can we take to ensure their assets are secure?

Response:

We can advise the client to contact their bank and order a stop-payment on any dubious transactions.

Leadership

Scenario:

There's been a significant error in our latest transactions. We need to discuss immediate solutions.

Response:

To protect company funds, I propose we put a stop-payment on any transaction that seems over the given limit.