The STOP Payments Fraud Act of 2026 modifies federal rules governing how quickly banks must make deposited funds available to customers. The bill creates new exceptions to these speed-of-availability requirements when banks have reasonable suspicion that a check or wire transfer involves fraud, meaning when there are indicators that would lead a reasonable person to suspect fraudulent activity. Banks that delay funds due to fraud suspicion must provide written notice to customers explaining their reasons and may hold funds for up to 60 days in high-risk accounts. Additionally, the legislation prohibits banks from charging overdraft fees if customers' accounts go negative solely because the bank delayed crediting a suspicious wire transfer without providing proper written notice. The Federal Reserve and Consumer Financial Protection Bureau are directed to jointly develop regulations to implement these fraud exceptions and define what circumstances indicate greater fraud risk.
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