ACH Stop Payments & WSUD in Alabama: R08/R07/R10 Made Easy (2025 Guide)

How to Place an ACH Stop Payment (Consumer)

1. Identify the debit (merchant name, exact amount/date, and whether it’s one-time or recurring).
2. Notify your bank at least 3 business days before the scheduled date—phone or in writing. Ask for a confirmation number. If your bank requests written confirmation, send it promptly (some banks require it within 14 days). 12
3. Clarify scope: stop one item, an entire series, or all future debits from the same originator. Under Nacha, RDFIs must honor stop orders given in time and manner that allow action prior to posting (including “Subsequent Entries”). 13
4. Check fees and duration: Some institutions charge a stop-payment fee and set a duration for non-consumer accounts; consumer stop orders for series typically remain until you lift them (see your account terms). Nacha has clarified banks must honor stop orders on subsequent entries when timely. 14
5. Monitor your account. If the debit still posts, immediately file an unauthorized claim and request return/recredit under Reg E, in addition to the Nacha return. 15

WSUD (Written Statement of Unauthorized Debit): What It Is & How to Use It

A WSUD is the consumer’s signed statement that an ACH debit was unauthorized, a key prerequisite for banks to return the entry under Nacha rules (e.g., R10). As of Oct-1-2024, a WSUD may be signed on or after the date the entry is presented (including when you see a pending alert)—you don’t have to wait for the settlement date. Electronic signatures are allowed. 16

WRITTEN STATEMENT OF UNAUTHORIZED DEBIT (WSUD)

Account Holder: [Name]   Phone/Email: [___]
Bank / Account: [FI name]   [Account last 4: ____]
Originator Name: [Company/Biller]   Company ID (if shown): [____]

I state that the ACH debit(s) listed below were unauthorized, or the authorization was revoked, or the entry was not in accordance with the terms of my authorization.

Date(s) & Amount(s): [mm/dd/yyyy – $____]  [Add lines as needed]
I first learned of the debit(s) on: [mm/dd/yyyy]

Check ONE:
[ ] I did not authorize the debit(s).
[ ] I revoked authorization with the company on [mm/dd/yyyy].
[ ] The debit was not in accordance with my authorization (explain): [______].

I certify that the above is true. I understand this claim may be shared with the originating bank.

Signature (wet or electronic): ____________________   Date: [mm/dd/yyyy]

Quick Guide (Alabama) — 8 Steps

Timelines & Responsibilities

Note: Financial institutions may also process “Request for Return (R06)” items where ODFI/RDFI agree on a return; RDFIs must respond to such requests within 10 banking days (effective Apr-1-2025). 34

Consumer vs. Business Accounts

Most of this guide addresses consumer accounts, where Reg E governs error-resolution and liability. Business accounts are not covered by Reg E; they rely on Nacha Rules, account agreements, and UCC Article 4A (for certain credit transfers). Many banks still accept stop-payment orders for business ACH debits and may return unauthorized corporate debits as R29 (“corporate customer advises not authorized”). Check your treasury agreement for exact timelines and fees; Nacha has also addressed expiration/handling of stop-payment orders on non-consumer accounts via minor rule topics. 35

FAQ

1) If I miss the 3-day window, can my bank still stop it?

Possibly. The 3-day rule is the Reg E minimum for preauthorized transfers. Banks may still attempt to block the item or return it post-posting via R10 (unauthorized) or R07 (revoked) depending on facts. Act immediately and put your request in writing. 36

2) Do I need to notarize a WSUD?

No. The Nacha Rules require a signature or similar authentication; notarization is not required and the CFPB has discouraged unnecessary hurdles. 37

3) Can I sign a WSUD electronically?

Yes. Nacha expressly allows electronic WSUDs (e-sign). 38

4) What if the debit is recurring but I want to cancel future ones?

Revoke authorization with the biller and notify your bank to block future debits; the bank can return such items with R07. 39

5) I see a “pending” debit today—can I submit WSUD now?

Yes. Since Oct-1-2024, the WSUD may be signed on or after presentation (including a pending alert). 40

6) Who do I escalate to in Alabama if my bank refuses?

File at the CFPB portal and with your bank’s federal regulator (OCC/FDIC/Federal Reserve). Alabama consumers can also file with the State Banking Department. 41

7) Does Reg E force the bank to use a specific Nacha code?

No. Reg E sets consumer rights and timing; Nacha defines ACH processing (e.g., R08/R07/R10). Banks apply both frameworks together. 42

8) Will my stop payment expire?

Consumer stop orders for a series usually remain until you cancel; single-entry stops apply to that entry. Bank terms can add specifics; Nacha has clarified honoring stop orders on subsequent entries when timely. 43

9) What documentation should I keep?

Copies of your stop-payment request or WSUD, bank messages, statement highlights, and any revocation sent to the biller. (Banks may need to share WSUD with the ODFI within 10 banking days.) 44

10) I’m a business—what code applies if I didn’t authorize?

For corporate accounts, banks often use R29 (“corporate customer advises not authorized”). Review your treasury agreement for deadlines and any indemnity language. 45

Technical / Legal Basis (Primary & Authoritative)

• Regulation E — 12 CFR §1005.10(c) (consumer right to stop preauthorized transfers; interpretations). 46
• Regulation E — 12 CFR §1005.11 (error-resolution framework for unauthorized EFTs). 47
• Nacha Rules — WSUD timing update & requirement; acceptance of e-signature; honoring stop orders on subsequent entries. 48
• Return codes — R10 unauthorized, R07 authorization revoked, R08 payment stopped (industry references). 49
• WSUD content/format — Federal Reserve ACH reference guide; retention & 10-day furnish to ODFI (payments association guidance). 50
• Escalation — CFPB complaint portal; OCC HelpWithMyBank; FDIC Consumer Response; Federal Reserve Consumer Help; Alabama State Banking Department. 51

Conclusion

For Alabama consumers, the fastest path to results is: decide whether you need a stop payment (R08), a revocation (R07), or an unauthorized return with a WSUD (R10); act within the Reg E timelines; and keep a tight paper trail. Use the modern WSUD timing and e-signature options to move quickly, and escalate through the CFPB, your bank’s federal regulator, and the Alabama State Banking Department if your bank stalls or mishandles the claim. 52

Disclaimer

This guide is general information for Alabama consumers about ACH stop payments and WSUDs. It is not legal or financial advice and does not substitute for an attorney. Always review your account agreement and consult counsel for your specific facts.