No, Regulation E — including its timeframes for stop payment orders — does not apply to business customers.
The Uniform Commercial Code states that banks may establish their own cut off time for receiving orders to cancel the payment of a funds transfer. Consequently, we recommend reviewing your account agreement with your customer to determine if you have established a stop payment notification requirement deadline.
For resources related to our guidance, please see:
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Regulation E, 12 CFR 1005.10(c) (“A consumer may stop payment of a preauthorized electronic fund transfer from the consumer's account by notifying the financial institution orally or in writing at least three business days before the scheduled date of the transfer.”)
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Regulation E, 12 CFR 1005.2(e) (“‘Consumer’ means a natural person.”)
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Illinois UCC, 810 ILCS 5/4A-106 (“The time of receipt of a payment order or communication cancelling or amending a payment order is determined by the rules applicable to receipt of a notice stated in Section 1-202. A receiving bank may fix a cut-off time or times on a funds transfer business day for the receipt and processing of payment orders and communications cancelling or amending payment orders. Different cut-off times may apply to payment orders, cancellations, or amendments, or to different categories of payment orders, cancellations, or amendments.”)
- Illinois UCC, 810 ILCS 5/4A-103 (“‘Receiving bank’ means the bank to which the sender's instruction is addressed.”)