H.R. 9331
STOP Payments Fraud Act of 2026
Sponsor: Young Kim
3 cosponsors
Official summary
Written by the Congressional Research Service.
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 enactment.
The bill also requires (1) the board and CFPB to determine whether to remove Treasury checks and cashier’s checks from expedited classification due to material losses from fraud, and (2) the Government Accountability Office to report on issues relating to the availability of funds and fraud protection.
Text of the bill
(a) Study. The Comptroller General of the United States shall conduct a study of—
(1) State laws addressing funds availability and safeguards to protect against fraud, including permitted hold periods for investigating fraud concerns;
(2) the extent to which depository institutions make funds available to consumers for local and nonlocal checks prior to the expiration of maximum hold periods;
(3) the length of time within which depository institutions involved with a deposit by check conduct investigations of the nonpayment of local and nonlocal checks;
(4) the appropriateness of the time periods and amount limits applicable under sections 603 and 604, as in effect on June 30, 2026; and
(5) administrative and legislative reform options to further mitigate payment fraud risk and any associated consumer harm, including with respect to forms of payments covered and not covered by the Expedited Funds Availability Act.
(b) Report to Congress. Within nine months of the effective date of rules implementing this Act, the Comptroller General of the United States shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report on the findings of the study required under subsection (a).