Sometimes paying bills or paying off debts via electronic payment is a convenient method of payment. However, there may come a time when you need to have these payments stopped. Learn how to place a stop payment on an electronic payment.
What is an Electronic Payment?
An electronic payment or electronic funds transfer basically is any payment that does not require the use of a physical payment such as a check, credit or debit card. Many billers, such as utility companies are increasing the use of electronic payments for monthly bills. Many will offer discounts and special incentives to set up automatic payments. Stopping electronic payments depends on the type of electronic payment made.
Types of Electronic Payments
There are three basic types of electronic payments or EFTs, according to ElectronicPayments.org – Direct Deposit, Check Conversion and Preauthorized Debit. Many consumers do not need to worry about stopping a direct deposit since most consumers are the recipients of direct deposit. However, preauthorized debits and check conversions are the types of electronic payments consumers may wish to place a stop payment.