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

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).

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).

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.