What does Preamble of STOP Payments Fraud Act of 2026 do?

This bill proposes to amend the Expedited Funds Availability Act. The proposed amendment aims to provide exceptions in cases involving fraudulent checks or wire transfers. The bill's stated purpose is 'to provide exceptions in the case of fraudulent checks or wire transfers, and for other purposes.'

What does SHORT TITLE. of STOP Payments Fraud Act of 2026 do?

This bill is formally titled the Strengthening Transaction Oversight and Preventing Payments Fraud Act of 2026.

What does PARITY OF AVAILABILITY FOR CERTAIN CHECKS. of STOP Payments Fraud Act of 2026 do?

This section amends the Expedited Funds Availability Act. Section 603 of the Expedited Funds Availability Act is modified by striking subparagraphs (A) and (F), redesignating subparagraphs (B) through (E) as (A) through (D), and adding 'and' to subparagraph (C). Paragraph (1) and the heading to paragraph (2) of subsection (d) of section 603 are struck. Section 604(a)(1)(D) is amended to remove references to subparagraph (C).

What does EXCEPTION TO FUNDS AVAILABILITY REQUIREMENTS IN THE CASE OF of STOP Payments Fraud Act of 2026 do?

This section amends Section 604(c) of the Expedited Funds Availability Act. It redesignates paragraphs (2) through (4) as paragraphs (3) through (5). A new paragraph (2) is inserted, titled 'Fraud,' which establishes an exception to certain application requirements under section 603. Regulations, jointly prescribed by the Board and the Director of the Bureau of Consumer Financial Protection, will govern this exception. The exception applies if a receiving depository institution has reasonable suspicion that a check is false, unauthorized, or involves fraud. Reasonable suspicion requires indicators that would lead a reasonable person to suspect fraud. A receiving depository institution with such suspicion may also have reasonable cause to believe the check is uncollectible.

What does EXCEPTION TO FUNDS AVAILABILITY REQUIREMENTS IN THE CASE OF NEW of STOP Payments Fraud Act of 2026 do?

This section amends Section 604 of the Expedited Funds Availability Act to address fraud risk related to new accounts and wire transfers. It establishes an exception allowing provisions of subsection (a) of Section 604 to apply to deposits in accounts, even those not established by new depositors, when circumstances indicate greater fraud risk, as determined by the Board and the Bureau of Consumer Financial Protection. The period for which these provisions apply is determined by rule, but cannot exceed 60 days per occurrence. It creates a 'Reasonable Suspicion Exception for Wire Transfers,' preventing Section 603(a)(1)(B) from applying if a depository institution reasonably suspects fraud in a wire transfer. Determinations regarding fraud suspicion cannot be based on a class of wire transfers or persons. If a depository institution determines a wire transfer is fraudulent and doesn't provide required notice, it cannot assess overdraft fees resulting from the delayed funds. Agencies are required to monitor compliance with these provisions during depository institution examinations. Depository institutions must retain records of notices provided under this section. The Act clarifies that it does not restrict communication between depository institutions regarding invoked exceptions.

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STOP Payments Fraud Act of 2026

Last updated: 6/18/2026 · Introduced: 6/18/2026

Author: Young Kim (R-CA)

TL;DR (AI)

This bill amends the Expedited Funds Availability Act to create exceptions to funds availability requirements when a depository institution suspects a check or deposit is fraudulent.
The bill establishes a process where depository institutions can delay funds availability for up to 60 days for accounts or wire transfers exhibiting heightened fraud risk, as determined by regulators.
Depository institutions are protected from assessing overdraft fees if they reasonably suspect a fraudulent wire transfer and fail to provide required notice.

119th Congressin committeeOfficial page

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Includes provisions on preamble, short title., and 3 more.

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