STOP Payments Fraud Act of 2026

Young Kim

Republican · CA · Representative

Source: Congress.gov · FEC

• Michael Lawler (R-NY-17)· 2026-06-29
• Vicente Gonzalez (D-TX-34)· 2026-06-29
• Sylvia R. Garcia (D-TX-29)· 2026-06-30

Placed on the Union Calendar, Calendar No. 692.

2026-09-01

Source: Congress.gov

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.

Plain-English rewrite of the Congressional Research Service summary published on Congress.gov. Cached and reviewed.

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 9331 Introduced in House (IH)] <DOC> 119th CONGRESS 2d Session H. R. 9331 To amend the Expedited Funds Availability Act to provide exceptions in the case of fraudulent checks or wire transfers, and for other purposes. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES June 18, 2026 Mrs. Kim introduced the following bill; which was referred to the Committee on Financial Services _______________________________________________________________________ A BILL To amend the Expedited Funds Availability Act to provide exceptions in the case of fraudulent checks or wire transfers, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Strengthening Transaction Oversight and Preventing Payments Fraud Act of 2026'' or the ``STOP Payments Fraud Act of 2026''. SEC. 2. PARITY OF AVAILABILITY FOR CERTAIN CHECKS. The Expedited Funds Availability Act (12 U.S.C. 4001 et seq.) is amended-- (a) in section 603 (12 U.S.C. 4002)-- (1) in subsection (a)(2)-- (A) by striking subparagraphs (A) and (F); (B) by redesignating subparagraphs (B) through (E) as subparagraphs (A) through (D), respectively; and (C) in subparagraph (C), as so redesignated, by adding ``and'' at the end; and (2) in subsection (d), by striking paragraph (1) and the heading to paragraph (2); and (b) in section 604(a)(1)(D), by striking ``subparagraph (A), (B), or (C)'' and inserting ``subparagraph (A) or (B)''. SEC. 3. EXCEPTION TO FUNDS AVAILABILITY REQUIREMENTS IN THE CASE OF FRAUD. Section 604(c) of the Expedited Funds Availability Act (12 U.S.C. 4003(c)) is amended-- (1) in paragraph (1), in the heading of the paragraph, by striking ``In general'' and inserting ``Collectability''; (2) by redesignating paragraphs (2) through (4) as paragraphs (3) through (5), respectively; (3) by inserting after paragraph (1) the following: ``(2) Fraud.-- ``(A) Regulations.--In accordance with regulations which the Board, jointly with the Director of the Bureau of Consumer Financial Protection, shall prescribe, subsections (a)(2), (b), (c), and (e) of section 603 shall not apply with respect to any check deposited in an account at a depository institution if the receiving depository institution has reasonable suspicion to believe that the check is false, unauthorized, or otherwise involves fraud. For purposes of the preceding sentence, reasonable suspicion to believe that a check is false, unauthorized, or otherwise involves fraud requires the existence of indicators that would lead a reasonable person to suspect that the check involves fraud. Such reasons shall be included in the notice required under subsection (f). ``(B) Rule of application.--A receiving depository institution that has reasonable suspicion to believe that a check is false, unauthorized, or otherwise involves fraud, as described in subparagraph (A), may also have reasonable cause to believe that such check is uncollectible from the originating depository institution, as described in paragraph (1).''; and (4) in paragraph (4), as so redesignated, by striking ``paragraph (1)'' and inserting ``paragraph (1) or (2)''. SEC. 4. EXCEPTION TO FUNDS AVAILABILITY REQUIREMENTS IN THE CASE OF NEW ACCOUNTS AND FRAUDULENT WIRE TRANSFERS. Section 604 of the Expedited Funds Availability Act (12 U.S.C. 4003) is amended by adding at the end the following: ``(g) Application of Certain Exceptions in Circumstances With Greater Fraud Risk.--With respect to an account established at a depository institution, and without regard to whether the account was established by a new depositor, upon the occurrence of circumstances identified by rule by the Board, jointly with the Director of the Bureau of Consumer Financial Protection, as associated with greater fraud risk, the provisions of paragraphs (1) through (3) of subsection (a)…

shall apply with respect to any deposit in such account for a period of time determined by rule by the Board, jointly with the Director of the Bureau of Consumer Financial Protection, but not to exceed 60 days for each such occurrence. ``(h) Reasonable Suspicion Exception for Wire Transfers.-- ``(1) In general.--In accordance with regulations which the Board, jointly with the Director of the Bureau of Consumer Financial Protection, shall prescribe, section 603(a)(1)(B) shall not apply with respect to funds received by a depository institution by wire transfer if the receiving depository institution has reasonable suspicion to believe that the wire transfer is false, unauthorized, or otherwise involves fraud. For purposes of the preceding sentence, reasonable suspicion to believe that a wire transfer is false, unauthorized, or otherwise involves fraud requires the existence of indicators that would lead a reasonable person to suspect that the wire transfer involves fraud. Such reasons shall be included in the notice required under subsection (f). ``(2) Basis for determination.--No determination under this subsection may be based on any class of wire transfers or persons. ``(3) Overdraft fees.--If the receiving depository institution determines that a wire transfer for credit to an account is a wire transfer described in paragraph (1), the receiving depository institution shall not assess any fee for any subsequent overdraft with respect to such account, if-- ``(A) the depositor was not provided with the written notice required under subsection (f) (with respect to such determination) at the time the wire transfer was delayed for credit; and ``(B) the overdraft would not have occurred but for the fact that the funds so transferred are not available. ``(4) Compliance.--Each agency referred to in section 610(a) shall monitor compliance with the requirements of this subsection in each regular examination of a depository institution. For the purpose of this paragraph, each depository institution shall retain a record of each notice provided under subsection (f) as a result of the application of this subsection. ``(i) Rule of Construction.--Nothing in this Act may be construed to restrict or prohibit a depository institution involved with a deposit by check or wire transfer from communicating to any other depository institution also involved with the deposit that a depository institution has invoked an exception under this section to some or all of the requirements of section 603 with respect to the deposit.''. <all>

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