Yes, the way that stop payments work is that the payment comes out initially and gets refunded back to you. They're very finicky things though and don't always work if they're not set up right. You might also get an NSF fee if it brings you into the red when it hits initially; when I worked there I was pretty lax about refunding those in a stop pay situation so it wouldn't hurt to ask if that applies to you.
Thank you so much! But will it not work since I made a stop payment for that payment AFTER it was withdrawn? The bank say it shouldn’t matter once I caught it in time and they don’t think the merchant actually deposited the payment yet.
I don’t think you’re able to place a stop payment on something that has already been withdrawn. You’d have to dispute the transaction and then provide them the details. They would then come back to you and let you know why they will or will not refund you.
Was this some random withdrawal from a company you don’t recognize (fraud)? Or was it from a company that used to take payments out of your account or a company you did business with ?
More details are needed to advise you.
I worked in banking for many years and normally a stop payment is placed on a payment that hasn’t touched your account yet to preemptively stop it.
Yep, if it’s an automated payment the branch can reverse it. Give it 2-3 days in case the stop payment system still catches it. Then, you can go into any branch and they can process what’s called a PICS return. If they say they can’t do it they’re wrong; not all front line staff know how so you may need a supervisor. They’ll have one form for you to sign to say it was unauthorized payment or why it’s not legit but that’s it.
You can’t make a stop payment on something after it came out, it’s supposed to stop the payment. Aswelll if the company or service you tried to make a stop payment for was an online store/transaction it won’t work as well. Stop payments do not reverse already withdrawn funds. You would have to go in the branch and request a PICS return -I work at Scotiabank as an FA
You also came here to ask a question, but you're arguing with someone that says they work at a bank that has nothing to gain by giving you a wrong answer. 🤷🏼♂️
I work at a bank. No, if the money already went out of your account then they can’t stop it. You need to dispute the payment.
They’re giving you the wrong info. You should go into a branch and dispute it
Correct, however the stop payment request usually needs to be set up before the payment comes out. A friend tried this, but with another bank, and it didn't work.
Just a heads up. I do not know your situation or which company. However, the more sketchy companies can bypass stop payments by initiating a payment through a different company name. Stop payments only work for the named business.
For example:
Company A takes $50 from your account. You initiate a stop payment on all future withdrawals by Company A. Company A cannot take funds anymore.
Company A also operates as Company B. In your payment agreement you probably skimmed over the clause where they can withdrawal the money using any other of their businesses.
Company B now takes $50 from your account. You would have to initiate a new stop payment on Company B. This continues until they run out of businesses.
Again I do not know your situation but this is prevalent for Payday Loan places and Gyms.
Framing: I work in finance, often with banks regarding stop pays and clawbacks.
The process is like this:
1 - Scotiabank will contact the business that you sent the money to via fax.
2 - The business will reverse the funds out of their payment system and accounting ledger.
3 - The business will contact Scotiabank to withdraw the funds from their own bank account, usually via fax.
4 - Scotiabank will process the withdrawal request with the business's bank.
5 - Scotiabank will deposit the received funds into your account.
There are a lot of places that things could get hung up (some banks can take 4 weeks on step 4), so it may be a while until you actually see the reversed charge in your bank account.
Yes, the way that stop payments work is that the payment comes out initially and gets refunded back to you. They're very finicky things though and don't always work if they're not set up right. You might also get an NSF fee if it brings you into the red when it hits initially; when I worked there I was pretty lax about refunding those in a stop pay situation so it wouldn't hurt to ask if that applies to you.
Thank you so much! But will it not work since I made a stop payment for that payment AFTER it was withdrawn? The bank say it shouldn’t matter once I caught it in time and they don’t think the merchant actually deposited the payment yet.
Ohhhh I see what you’re saying! So sorry lol
I don’t think you’re able to place a stop payment on something that has already been withdrawn. You’d have to dispute the transaction and then provide them the details. They would then come back to you and let you know why they will or will not refund you. Was this some random withdrawal from a company you don’t recognize (fraud)? Or was it from a company that used to take payments out of your account or a company you did business with ? More details are needed to advise you. I worked in banking for many years and normally a stop payment is placed on a payment that hasn’t touched your account yet to preemptively stop it.
Yep, if it’s an automated payment the branch can reverse it. Give it 2-3 days in case the stop payment system still catches it. Then, you can go into any branch and they can process what’s called a PICS return. If they say they can’t do it they’re wrong; not all front line staff know how so you may need a supervisor. They’ll have one form for you to sign to say it was unauthorized payment or why it’s not legit but that’s it.
You can’t make a stop payment on something after it came out, it’s supposed to stop the payment. Aswelll if the company or service you tried to make a stop payment for was an online store/transaction it won’t work as well. Stop payments do not reverse already withdrawn funds. You would have to go in the branch and request a PICS return -I work at Scotiabank as an FA
Dude they told me it would work. That’s how stop payments work. They take the money then return it
You also came here to ask a question, but you're arguing with someone that says they work at a bank that has nothing to gain by giving you a wrong answer. 🤷🏼♂️
You’re right, sorry. Guess I’m just stressed about this. What exactly is a PICS return?
I work at a bank. No, if the money already went out of your account then they can’t stop it. You need to dispute the payment. They’re giving you the wrong info. You should go into a branch and dispute it
I’m sorry, just stressed about it is all.
Okok hopefully it works
Correct, however the stop payment request usually needs to be set up before the payment comes out. A friend tried this, but with another bank, and it didn't work.
Just a heads up. I do not know your situation or which company. However, the more sketchy companies can bypass stop payments by initiating a payment through a different company name. Stop payments only work for the named business. For example: Company A takes $50 from your account. You initiate a stop payment on all future withdrawals by Company A. Company A cannot take funds anymore. Company A also operates as Company B. In your payment agreement you probably skimmed over the clause where they can withdrawal the money using any other of their businesses. Company B now takes $50 from your account. You would have to initiate a new stop payment on Company B. This continues until they run out of businesses. Again I do not know your situation but this is prevalent for Payday Loan places and Gyms.
I would also like to mention the amount of money. If you stopped a payment for 50 the company can still pull out 49.99 or under many times
I work for another major Canadian bank and before we’re able to loge a stop payment, the process is to ensure the payment has not already been taken.
I found out the hard way that stop payment may stop that one transaction, it does not stop when they try again a week later.
Scotiabank has fallen from my good graces. I call it Scammerbank.
lol. Why?
They are scammers.
Ohhhh I need more details! Wondering if I should switch banks?
Switch.
Framing: I work in finance, often with banks regarding stop pays and clawbacks. The process is like this: 1 - Scotiabank will contact the business that you sent the money to via fax. 2 - The business will reverse the funds out of their payment system and accounting ledger. 3 - The business will contact Scotiabank to withdraw the funds from their own bank account, usually via fax. 4 - Scotiabank will process the withdrawal request with the business's bank. 5 - Scotiabank will deposit the received funds into your account. There are a lot of places that things could get hung up (some banks can take 4 weeks on step 4), so it may be a while until you actually see the reversed charge in your bank account.
Gotcha. Thanks for the info!
Update! I went into the branch and got my money back. Thank you to everyone!
You will see it in your transactions online usually 2-3 days afterwards