If a check is deposited and a stop payment is put on it the same day, will it still clear?
A stop payment order arrives in time to be effective if it is received by the bank on which the check is drawn before the bank's cutoff hour, and the bank has time to act on the stop payment before the check is paid. Suppose the check is drawn on First Bank, and deposited at Second Bank on Monday. On the same day, the issuer of the check delivers a stop payment order on the check to First Bank. In this case, the stop payment order is on time, and the check should not be paid by First Bank. Second bank won't know about the stop payment order until the deposited check is returned by First Bank, marked "Payment Stopped." However, if the check is deposited at First Bank (the same bank that it's drawn on) on Monday, the stop payment order may or may not be in time, depending on how the check was deposited.
In some banks, a check drawn on the same bank that it is being deposited to is first paid at the teller window (that is, the teller verifies that the check is good, posts it against the issuer's account, and then credits the amount of the check to the depositor's account. With this method, the check is considered finally paid at the time of the deposit. If the stop payment arrives in time for the bank to act on it before the deposit transaction, the teller will be alerted to the stop payment and the check won't be honored. If the stop payment arrives too late for the bank to act on it, the check will be paid, and the stop payment order won't be effective.
In other banks, when a check is deposited, it doesn't matter whether the check is drawn on the same bank or not -- the check is not paid at the teller window. It is processed with the deposit ticket and, if it's a check on the same bank, it will be presented for payment against the issuer's account at the close of business on Monday, after the stop payment order has been received and processed. In this scenario, the stop payment order would be timely, and the check should not be paid. Instead, it would be charged back against the depositor's account on Tuesday, and returned to the depositor, marked "Payment Stopped." In fact, the stop payment order could be placed as late as Tuesday and still be effective in this scenario, as long as it is received before the cutoff hour (at least one hour after Tuesday's opening of business; if no cutoff hour is established, the close of business on Tuesday).
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A stop payment order arrives in time to be effective if it is received by the bank on which the check is drawn before the bank's cutoff hour, and the bank has time to act on the stop payment before the check is paid. Suppose the check is drawn on First Bank, and deposited at Second Bank on Monday. On the same day, the issuer of the check delivers a stop payment order on the check to First Bank. In this case, the stop payment order is on time, and the check should not be paid by First Bank. Second bank won't know about the stop payment order until the deposited check is returned by First Bank, marked "Payment Stopped." However, if the check is deposited at First Bank (the same bank that it's drawn on) on Monday, the stop payment order may or may not be in time, depending on how the check was deposited.