To cancel a cheque in Canada, you must visit or contact your bank to ask for a stop payment then pay the associated fee. It's a straightforward process but it's important to act quickly so you and the recipient don't encounter financial difficulties.
A cancelled cheque is one that has been invalidated by the issuer before it's cashed or deposited. There are various situations that require doing this, but it's usually possible to have a cheque immediately cancelled, as long as it hasn't been processed yet.
Understanding how to request a stop payment and cancel a cheque is an important part of banking in Canada. Below, you'll find the process laid out step-by-step.
Key Takeaways
- Cancelling a cheque stops the payment before it’s been deposited.
- You can request a stop payment at a branch, using telephone banking, or online.
- Cheques can be cancelled for a number of reasons, such as an error on the cheque, if the cheque has been lost, or if the payment situation has changed.
- You can’t cancel a cheque that’s already been cashed by the recipient.
- Cancelled cheque fees range from $12.50 to $30.
How to cancel a cheque before it's been deposited
While the specific procedure to cancel a cheque may vary slightly from bank to bank, these basic steps are universally required.
- Gather important details: The first thing to do is gather your cheque number, date of cheque, name of the payee, and the amount the cheque was written for. Do this as soon as possible so you can cancel the cheque before it gets deposited.
- Contact your bank: You can then contact your bank to issue the stop payment or log onto your online banking portal and make it there if the cheque hasn’t been cashed.
- Pay the fee: Most banks charge a stop payment fee to cancel a cheque on your behalf. You may receive a reduced or waived fee if you do it online or have a specific bank account.
- Let the recipient know: While this isn't a mandatory part of the cancellation process, in most situations it’s simply the right thing to do. Keeping the cheque recipient up-to-date helps avoid any confusion or inconvenience on their part.
How much does it cost to cancel a cheque?
Here's how much the major Canadian banks charge to cancel a cheque:
| Bank | Fees |
|---|---|
| BMO | * $12.50 |
| CIBC | * $12.50 with full details * $20 if full details are not provided |
| National Bank | * $16 to $30 |
| RBC | * $12.50 for online banking * $25 at a branch or via telephone banking |
| Scotiabank | * $12.50 if details are complete * $20 if details are not complete |
| TD | * $12.50 via online banking * $25 via a branch or telephone banking * $20 if the cheque is written for a different currency |
Can you cancel a certified cheque?
Once a cheque is certified, it cannot be cancelled. Certification guarantees that the funds are available and reserved for the payee, making the cheque as good as cash. Even if the cheque is lost or stolen, stopping payment is generally not possible.
If you lose a certified cheque, contact your bank immediately. They may require you to complete an indemnity agreement (a contract where you agree to pay for any losses) and wait for a specified period before issuing a replacement.
However, this process doesn't guarantee that the funds can be recovered if the original cheque is cashed.
Limitations of stop payments
A stop payment request can prevent a cheque from being cashed, but it has limitations:
- Timing is crucial: If the cheque has already been cashed or deposited, a stop payment won't be effective.
- Accuracy matters: The stop payment must include the correct cheque number, amount, date, and payee. Any discrepancies can render the stop ineffective.
- Fees apply: Banks typically charge a fee for processing a stop payment request.
- No guarantee: Even with a stop payment in place, banks cannot guarantee that the cheque won't be processed, especially if the request was made after the cheque was presented.
Always confirm the status of the cheque with your bank after placing a stop payment to ensure it hasn't been cashed.
Can a cheque be cancelled after it's deposited?
No. Once a cheque has been deposited it can no longer be cancelled and your stop payment request will be declined.
This is why it’s so important to act quickly if you need to cancel a cheque. Your only remaining option is to reach out to the payee and organize repayment, if possible.
FAQ
What is a cancelled cheque?
A cancelled cheque is one that gets stopped before it’s cashed or deposited, usually because of incorrect details or safety reasons. The first thing to do is gather the cheque details and contact your bank to stop the payment.
What is a stale-dated cheque?
A cheque is considered stale-dated six months after it's written. So if the date on a cheque says May 1, 2024, it's considered stale by November 1, 2024. However, this doesn't apply to certified cheques.
Can a certified cheque be cancelled?
A certified cheque is a guaranteed form of payment issued by a bank. Once a certified cheque is issued, the funds required to cover that amount are frozen in your account and the cheque cannot be cancelled.
Can a cheque be cancelled after it has been cleared?
No, once a cheque has been deposited, the transaction is complete and the cheque cannot be cancelled. This is why it's important to issue a stop payment ASAP when you want to cancel a cheque.
Can you cancel post-dated cheques?
Yes, a post-dated cheque is treated like any other cheque that hasn't been deposited. Contact your bank or log into your online banking to initiate the process as soon as it’s confirmed that the cheque needs to be cancelled.
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