STOP Payments Fraud Act of 2026

Bill Number: H.R. 9331
Origin Chamber: House
Congress: 119th Congress, Session 2
Policy Area: Finance and Financial Sector
Status: Introduced
Latest Action: 2026-06-30: Ordered to be Reported (Amended) by the Yeas and Nays: 51 - 0.
Last Updated: 2026-07-09T17:21:12Z

AI-Generated Summary

This bill aims to update rules on when banks must make deposited funds available to customers, specifically by allowing delays in cases of suspected fraud involving checks or wire transfers.
It seeks to strengthen oversight of transactions and reduce risks from fraudulent payments.

Section 2 (Parity of Availability for Certain Checks): Removes certain categories of checks from standard availability timelines under the Expedited Funds Availability Act and adjusts related references to simplify rules.
Section 3 (Exception for Fraud in Checks): Adds a new exception allowing banks to delay fund availability if they have reasonable suspicion that a check is false, unauthorized, or involves fraud. This requires specific indicators of fraud and notice to the customer. It also links this to existing rules on uncollectible checks.
Section 4 (Exceptions for New Accounts, Fraudulent Wire Transfers, and Related Rules):
Permits longer holds on deposits in accounts with higher fraud risk, up to 60 days, based on rules set by regulators.
Allows banks to withhold wire transfer funds if there is reasonable suspicion of fraud, with requirements for notice, record-keeping, and a ban on overdraft fees in certain cases where notice was not provided.
Includes a rule stating that banks may share information about invoking these exceptions with other involved banks.

Amends the Expedited Funds Availability Act (12 U.S.C. 4001 et seq.) by adding fraud-based exceptions to standard fund availability requirements for both checks and wire transfers.
Introduces "reasonable suspicion" as a standard for delays, defined by indicators that would lead a reasonable person to suspect fraud, rather than relying solely on prior categories.
Requires joint regulations from the Federal Reserve Board and the Bureau of Consumer Financial Protection for implementing these exceptions.
Adds consumer protections, such as mandatory notices and restrictions on overdraft fees for wire transfers.

Government agencies: The Federal Reserve Board and Bureau of Consumer Financial Protection must create new regulations and monitor compliance during bank examinations; agencies may see increased oversight duties.
Citizens: Depositors might experience delayed access to funds in suspected fraud cases, but with protections like required notices and limits on fees; this could reduce losses from fraud but increase inconvenience.
International relations: No direct effects identified, as the changes focus on domestic banking practices.

Depository institutions (banks and similar entities), which gain flexibility to hold funds but must follow new notice and record-keeping rules.
Consumers and account holders, who may face temporary delays but benefit from fraud safeguards.
Federal regulators, including the Federal Reserve Board and Bureau of Consumer Financial Protection, responsible for rulemaking and enforcement.

The bill expands regulatory authority for fraud prevention while maintaining consumer notice requirements, potentially balancing bank security needs with customer rights.
It introduces no apparent constitutional conflicts, as it operates within existing federal banking oversight frameworks.
Politically, it emphasizes fraud reduction in financial transactions without altering broader policy structures.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Strengthening Transaction Oversight and Preventing Payments Fraud Act of 2026 — issued 2026-06-18 — PDF (6 pages)