H.R. 9331 · On the floor · Finance and Financial Sector

STOP Payments Fraud Act of 2026

Sponsor: Young Kim (R-CA)

What it does

• Allow banks to hold checks or wire transfers for up to 10 days (or 45 days on extension) if reasonably suspected of fraud.
• Prohibit overdraft fees on wire-transfer holds when depositors did not receive written notice of the hold.
• Authorize the Federal Reserve and CFPB to apply fraud-prevention safeguards to high-risk accounts for up to 60 days per occurrence.
• Require the Federal Reserve and CFPB to review whether Treasury checks and cashier's checks should be removed from expedited-funds classification due to fraud losses.

Official summary

Strengthening Transaction Oversight and Preventing Payments Fraud Act of 2026 or the STOP Payments Fraud Act of 2026 This bill establishes additional grounds for banks to pause the processing of deposited checks and wire transfers. Under current law, banks are generally required to make deposited funds available in one to two business days, depending on the type of deposit and with limited exceptions. Under the bill, receiving banks are allowed to delay the processing of checks or wire transfers that they reasonably suspect are fraudulent. The bill allows for an initial hold that is not to exceed 10 days and an extended hold that is not to exceed 45 days. If an account is overdrawn due to a hold on a wire transfer and the depositor did not receive written notice, no overdraft fees may be applied. The bill allows the Federal Reserve Board and the Consumer Financial Protection Bureau (CFPB) to determine when to apply safeguards to accounts determined to be at greater risk of fraud. Such safeguards must not apply for more than 60 days for each occurrence. These changes take effect 60 days after the issuance of implementing rules, which must be issued within one year of the bill's…

Latest action

Sep 1, 2026: Placed on the Union Calendar, Calendar No. 692.

Committee: House Financial Services