STOP Payments Fraud Act of 2026

This bill, titled the STOP Payments Fraud Act of 2026, amends federal laws to give banks more flexibility in delaying the availability of funds when they suspect fraud. It allows depository institutions to hold checks and wire transfers for up to 60 days if there is reasonable suspicion that the transaction is false, unauthorized, or fraudulent, rather than following standard expedited release rules. The legislation requires banks to notify customers of these delays and prohibits overdraft fees if the delay is caused by the bank's fraud investigation. Additionally, it permits banks to share information about suspected fraud with other financial institutions to help prevent future issues.